Concealing assets has become sophisticated in recent years. Divorcing spouses have learned to use cryptocurrency to transform their cash into digital form.
Cryptocurrency, such as Bitcoin and Ethereum, has a decentralized system independent of government and banking authorities. However, despite extensive discussions, its mainstream adoption is still in its infancy.
Thus, it is an enticing mechanism for tech-savvy spouses to manipulate marital assets and hide their financial tracks.
Reasons for using cryptocurrency as a concealment tool
As an equitable distribution state, Kentucky law divides marital properties fairly but not necessarily 50/50. Knowing this, some spouses do not want to risk their chances with the court’s decision.
Instead, they secretly stash their funds in cryptocurrency because it is:
- Difficult to trace: Its anonymous or privacy blankets make it hard to locate the source.
- Easy to transfer: Facilitating the transfer can be immediate. So much so that it can cross borders, making undisclosed offshore accounts more feasible.
- Costly to uncover: It requires working with forensic accountants to hunt down and comb through vital details that can serve as proof during divorce hearings.
In these complex asset division cases, forensic specialists may also provide expert testimony to support the complaining spouse’s claim. Using the same findings, they may also dispute the other party.
Exposing hidden digital wealth is possible
No matter how tough, it is possible to reveal a spouse’s deceitful ways. Since cryptocurrency presents unique complications, it will be wise for affected spouses to seek legal help to ensure they get their fair share of the marital wealth.