When going through a divorce, one of the hardest parts is often the process of asset division. Not only is this mentally and emotionally taxing, but it is also a huge financial hardship for many.
Because of how unpleasant it is, many spouses have attempted to hide assets during divorce. The fact that it is illegal and the potential penalties they could face does not dissuade them. These days, they turn to more modern methods of hiding assets too, like cryptocurrency.
How is cryptocurrency used?
CNBC discusses the rising use of cryptocurrency to hide assets. Cryptocurrency became a beacon for people attempting to pass by the radar undetected with illicit financial activities. Money laundering became a major problem very quickly, and the issue of divorcing couples hiding assets also manifested in no time at all.
This could happen because digital currency did not have the same amount of oversight and regulation as other forms of currency for a long time. Years passed before the mainstream populace began paying attention to things like bitcoin. It was not until recently that the IRS declared cryptocurrency taxable income.
Red flags to watch for
However, even with recent crackdowns and more oversight, some spouses may still turn to their digital wallets to hide assets away. The best thing you can do is keep an eye out for potential red flags.
The biggest ones often have to do with spending habits and overall behavioral changes. Many spouses will act more suspicious, paranoid or anxious when hiding assets. Others will change their habits up, often ceasing all superfluous spending so they can save more money away.
If you notice these changes, consider contacting legal help to look into your rights and how you can pursue suspicions of digital asset hiding.