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Scrutinizing cryptocurrency may be key with property division

On Behalf of | Jun 8, 2021 | Property Division

Property division is the foundation for many family law disputes in Florida. Often, this is connected a home, automobiles, items of sentimental value, bank accounts, retirement accounts, a business and more. However, people who are trying to hide assets as part of an acrimonious divorce may do so in innovative ways. Those who are concerned about a spouse who is hiding assets should be aware of strategies to ensure everything is accounted for. One way that people hide assets in the current economy is through cryptocurrency.

Finding digital assets during a divorce

Digital assets are on the rise with a market value at around $2 trillion. Its popularity is due in part to the belief that an increase in value is likely. It is also because it is difficult to track and those who are worried about shielding these assets in a divorce might try to use it toward that end. An estimated 20 million people have invested in cryptocurrency. This adds complexity to already difficult divorces in which vast assets are at stake. Tracking these funds can be difficult. People worried about it must be aware of how frequently this is happening.

Spouses might know that their husband or wife invested in cryptocurrency and ask for a detailed accounting. If they are unsure, there are telltale signs such as there being extra money available, unexplained purchases and significant lifestyle changes. The courts can be asked to intervene when there might be hidden cryptocurrency. A court order or a subpoena can mandate an in-depth search. Emails, online records and the use of certain websites could be indications of cryptocurrency purchases. Some forms of digital assets are harder to track than others, so it is wise to have professional assistance. The amount might also be a factor. If it is a high-asset situation, then there could be a hefty amount being hidden. If people simply dabbled in crypto, then the cost could be prohibitive based on the potential return.

Achieving fair property division may require experienced help

Because digital assets are relatively new, many people are unaware of what they are, what the terms mean, where they are stored and how to value them. As part of property division, it adds a challenging layer to what might already be a contentious divorce. With cryptocurrency or more conventional assets, it is wise to have professional assistance from the start to find the assets and make sure they are distributed fairly.