Whether you love it, hate it, or simply don’t care either way, cryptocurrency has officially entered the mainstream. With many banks, corporations, and even government agencies trying to get into the crypto game, there’s no denying that these novel approaches to financial assets are more popular than ever.
In the most basic of terms, cryptocurrency is an alternative to traditional currency whose defining trait is the ability to encrypt transactions and key financial details. There are many advantages and disadvantages to this, and people use crypto for both good and bad reasons. When it comes to divorce, cryptocurrency adds an extra layer of complexity to your divorce process.
The Anonymity of Crypto Complicates Asset Division
As you can imagine, the fact that transactions and “wallets” are heavily encrypted means that it can be very easy to hide these assets. When going through a divorce, CA works to divide shared assets in a way that is equitable to all parties and makes sense given individual and shared finances, earning potential, etc
This can make it very tempting for someone to simply hide assets as cryptocurrency, or to underestimate their true wealth if some of it is tucked away in a Bitcoin-heavy portfolio. These types of deceptions can help that person get a better “outcome.”
Take note however that any attempt to hide assets in a court of law is a criminal act in and of itself.
Uncovering Hidden Cryptocurrency and Other Hidden Assets
All this being covered, even cryptocurrency can be tracked and accounted for with the right information. With the help of an attorney or a legal expert, you can uncover points where money was transferred into crypto and analyze financial documents held by the payor to gather crucial details. While the ex might feel tech-savvy for trying to hide assets in such a cutting-edge medium, their attempts to do so will only lead to harsh added penalties and potentially even criminal charges.
Make sure you’re prepared to uncover any and all relevant assets during your upcoming CA divorce. Give us at the Law Offices of James P. White a call today to learn more about how we can help with this process. We’re experienced in all matters that involve or relate to family law in CA, and offer free initial consultation.
Give us a call at 925-271-0999 today to learn more.