High net-worth divorces are high-stakes matters with significantly valuable assets at stake. Dividing property presents significant challenges for everyone involved. Even more complexities arise when one spouse fails to disclose everything they have.
Financial fraud in the marital dissolution process seems to be more of an exception than the rule. However, divorce can bring out the worst in people. They see an uncertain future and take drastic measures to ensure financial stability. Many of these soon-to-be exes attempt to conceal their assets through bitcoin.
The bitcoin option
Also referred to as digital or virtual currencies, bitcoin is protected by encryption and exists in a decentralized structure without the purview of governments and central authorities. The growing popularity of trading this type of currency has resulted in skyrocketing value. Currently, it represents the most traded and covered cryptocurrency worldwide.
Concealing divorce assets via bitcoin is effective due to its liquidity and ability to trade in large quantities easily. Millions can be sold with one click of the mouse, allowing those going through a divorce to evade the law and hide assets with minimal chance of detection.
Bitcoin, for example, which continues to be the most extensively traded and covered cryptocurrency in the world, is a highly liquid asset class and may be moved swiftly, efficiently, and traded in large quantities. In a matter of minutes, millions of dollars are sold and, in the hands of those seeking to evade the law, laundered or otherwise hidden.
Spouses possessing crypto assets require investigations with attention to all details, particularly if their soon-to-be ex has zero knowledge of bitcoin trading that is technically complex. When it comes to dividing assets, confirmation of the property is paramount. From there comes the identification of stored assets in private wallets or various crypto exchanges.
The challenges are numerous. Help from a skilled attorney with resources in this complex area of finances can make a difference in a stable financial future.