High-net-worth divorces could involve significant assets. Since Texas is a community property state, martial assets typically undergo an even division when divorcing. One spouse may try to hide assets from the court, and cryptocurrency could be appealing to those wishing to hide money. Cryptocurrency can be challenging – if not impossible – to trace. So, those concerned about a spouse’s tactics might need to remain alert to any signs of attempts to hide crypto.
Detailed records likely exist when someone puts money into stocks, bonds or other assets. Anyone who purchases investment assets through a brokerage firm would have an account that details all holdings in a portfolio. At the end of the year, the brokerage firm will issue 1099s to the account holder and the IRS. Hiding these types of investments would be incredibly challenging. With cryptocurrency, records are kept far more secretively.
Cryptocurrency is placed inside a virtual wallet and held entirely anonymously. Accessing the account may require a password key that only one person knows. A spouse might move significant sums into a wallet, and tracing the funds might be challenging. So, the other spouse may need to be alert to signs that money may be in such a wallet.
Looking for signs
If a spouse is someone who stays current with technology, they may be knowledgeable about crypto. When funds disappear from some accounts mysteriously, the spouse might divert them to crypto. Other signs, such as a website browsing history that reflects crypto research, might indicate funds moved into a wallet before a high-asset divorce.
Suspicions do not indicate proof. However, informing the divorce attorney about such suspicions may be wise. The attorney might inform the court, and the court could investigate further. Remember that attempts to hide assets could get a spouse into legal trouble.