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Is your spouse using cryptocurrency to hide money?

On Behalf of | Apr 16, 2024 | Divorce

Hiding money is one of the challenges people encounter when going through a divorce, as it can lead to unfair property division. People keep getting “wiser” with how to hide money, and one of the common ways they use is cryptocurrency.

Here is what to know:

Cryptocurrency is highly anonymous

Anonymity is one of the primary elements of cryptocurrency. Newer coins with advanced features are being introduced into the market, making it even more difficult to track cryptocurrency. That’s why some people use it to hide money during divorce. 

How can you tell your spouse is hiding money in cryptocurrency?

While anonymity is a top quality of cryptocurrency, most coins are not completely anonymous. They can be traced. But first, you need to know the signs to look out for to raise the matter. 

For example, it can be concerning if your spouse had a decent income but fewer assets during divorce. Their money may be in cryptocurrency.

Thus, you should inform the court who may subpoena your spouse’s computer and other electronic devices. Forensic experts can examine the devices to find any information that suggests they have a digital currency, such as a tracker app. 

Income earned from digital asset transactions reported on past tax returns can also prove your spouse has a digital currency. Further, bank statements showing transactions related to cryptocurrency are a good sign.

You can also tell that your spouse is hiding money if they are suddenly interested in cryptocurrency. For example, they start following social media pages focused on purchasing digital assets.

If you believe your soon-to-be ex-spouse is using cryptocurrency to hide money, get legal help to protect your interests.