Going through a divorce means you will face a lot of difficult situations, including asset division. This often serves as the longest and one of the most fraught parts of the divorce process.
Of course, many people also struggle with issues like asset hiding during this time. But what is it, and how does a person watch out for it?
Why do spouses hide assets?
CNBC discusses the rise of cryptocurrency in divorce cases. It relates to divorce cases specifically for what it can do for a spouse who wants to hide assets.
Asset hiding occurs for many reasons. A spouse may feel like they are at genuine financial risk and need the extra money. They may simply view their ex in a negative light and want to deny them any sort of assets. Whatever the case, this is illegal and can come with serious consequences if the person hiding assets gets caught.
To avoid these consequences, spouses will try to hide their assets in clever ways that accountants, lawyers and even forensic financial analysts struggle to find. Cryptocurrency and digital wallets once made a perfect place for this.
Hiding money in digital wallets
In the recent past, hardly anyone knew anything about digital wallets. It was easy to hide money in bitcoin and other forms of cryptocurrency simply because no one, including even the IRS, was keeping a very close eye on it.
Of course, recently, mainstream media focused a light on cryptocurrency. Because of this, more individuals have an awareness of its existence. Spouses with suspicions of asset-hiding know to look toward digital wallets now along with more traditional means of hiding assets.