An amicable divorce involves both spouses attempting to dissolve their marriage without much conflict. Not all divorce proceedings follow this approach, and even some seemingly agreeable ones have troubles. For example, one spouse could enter a Texas family court appearing to be agreeable but might engage in unethical and illegal behaviors, such as attempting to hide assets. Alarmingly, persons with cryptocurrency holdings might have ways to facilitate their dishonesty.
Cryptocurrency and divorce proceedings
One concern about cryptocurrency holdings is the anonymous nature associated with digital assets. Even the IRS could have a challenging time tracking down who holds or trades what or how much when crypto accounts are not connected to a name or Social Security number. Things might be even more difficult for a spouse who has no idea a partner puts funds into a crypto account.
Suspicions about cryptocurrency holdings may arise when one spouse hears the other discuss crypto’s value and investment potential but shows no digital portfolios among declared assets. While the spouse might not have any crypto, it could be worthwhile to press further. The partner may attempt to hide something.
Hiding assets and legal troubles
Anyone attempting to hide cryptocurrency holding during divorce settlement negotiations may face dire legal consequences. The court won’t likely appreciate such behavior, and the spouse in a high-asset divorce might face several charges. Still, some may attempt to get away with the deception.
When it seems a spouse could be hiding something, the other party might need to hire a forensic accountant. A professional with specialized accounting skills may uncover attempts to defraud.
A thorough uncovering of a dishonest spouse’s cryptocurrency holdings may lead to a fairer property division. Discovering every asset the spouse holds may affect support determinations as well.