Is Your Spouse Using Cryptocurrencies to Hide Assets?

 Posted on March 07, 2023 in High Asset Divorce

While many Americans have heard about Bitcoin and other cryptocurrencies, less than 25 percent say they know a lot about them. If you are involved in a high-asset divorce and suspect your spouse may hiding assets, cryptocurrencies could be the perfect hiding place if you yourself are not familiar with these assets.

With only a small amount of people actually familiar with cryptocurrency, it is important to work with a high-asset divorce attorney and other financial professionals who are familiar with and experienced in finding hidden cryptocurrencies. Although each spouse is required to disclose all assets in their financial affidavits, including the value of any crypto assets, it is not surprising that a spouse on a mission to hide assets would not make this disclosure on their affidavit.

Where to Look for Crypto Assets

There are multiple exchanges where crypto assets can be purchased. If a spouse has purchased these assets, then the first place to look would be in their bank and credit card statements. Some of the exchanges to look for include:

• Kraken

• Coinbase

• Crypto.com

• Gemini

• BitMart Exchange

• Cash App

• Bisq

The other places to look for any cryptocurrency purchases are on your spouse’s Venmo, PayPal, or Robinhood accounts. If you do find any transactions, your attorney can file for a subpoena through the court for your spouse to produce all information about these transactions and assets, including what amount was purchased, what amount was sold, and if any amounts were transferred.

Hot and Cold Wallets

If there were transferred amounts, this can be more difficult to track down since any of the information provided would only show the address of the recipient’s “wallet” and not their actual identity. This is referred to as a hot wallet.

If your spouse is really burying assets, then the transfers may have been made to a “cold” wallet, which is actually a storage device that connects to a computer via a USB port.

Although you may not actually be able to “find” these assets, if you can prove they exist, then your divorce lawyer can use this proof to ensure you get your fair share of the marital estate. For example, if your forensic accountant or other financial professional shows that your spouse has $500,000 in cryptocurrency hidden away, it is possible that you may be entitled to a portion of the hidden amount.

Contact a Travis County High Net Worth Divorce Attorney

If you are getting divorced and suspect your spouse is hiding assets, make sure you have a skilled Austin, TX complex divorce lawyer advocating for you and ensuring you get your fair share of the marital estate. Call Powers Kerr & Rashidi, PLLC at 512-610-6199 to schedule a confidential consultation and find out how we can help.

Sources:

https://www.nerdwallet.com/article/investing/hot-wallet-vs-cold-wallet

https://www.investopedia.com/best-crypto-exchanges-5071855