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Should you worry about your spouse’s digital assets?

On Behalf of | Jul 20, 2022 | High-net Worth Divorce |

These days, digital assets make up a big part of a person’s property or asset value as a whole. More and more people invest in these assets for perfectly legitimate reasons.

However, some people may use them as a ruse for illegal activity. This can include the use of digital assets to get away with hiding assets in a divorce.

What are digital assets?

CNBC discusses how some people use digital assets like cryptocurrency to hide money from their spouses. Digital assets exist in a realm that most people did not have any insight into until recently, when cryptocurrency like bitcoin reached the mainstream consciousness.

Cryptocurrency used to hold unregulated power in a market that the government did not see. Thus, many shady organizations or people used it to launder money or carry out other tasks that they did not want eyes on.

How hiding assets via crypto works

Likewise, people trying to hide assets from their spouses relied on their digital wallet. Many spouses did not even know about digital assets, let alone understand how a person could use them to hide money.

In essence, someone could invest in bitcoin and could then say they had less money to give away in asset division than they really did. After the divorce was finalized, they could either leave their investment as it was or withdraw the money in order to replenish their assets in other arenas.

This is still hiding assets, however, and someone attempting to do this with bitcoin can still face the consequences. Thus, people who suspect their spouse of asset hiding through digital means may want to consider inspecting the matter.