The rising popularity of cryptocurrencies as investment assets has introduced a new source of conflict in divorce cases. Hidden digital assets are a growing concern, leading to turmoil within divorce proceedings.
Indeed, divorce attorneys and financial advisors are now confronted with complex situations arising from financial deception related to undisclosed cryptocurrency holdings, CNBC reported on May 20.
The scenario is particularly prominent in states like Florida, Texas, New York, and California, where cryptocurrencies play a significant percentage of divorce cases, ranging from 20% to 50%.
Interestingly, attorneys and advisors are discovering cases where one spouse secretly invests substantial amounts, ranging from hundreds of thousands to millions of dollars, in cryptocurrencies without their partner’s knowledge.
Tactics deployed to hide cryptocurrencies
Some tactics involved include dispersing crypto across various coins on different blockchains and complicating tracing money trails. Interestingly, due to the ability to trace Bitcoin (BTC) in some cases, spouses opt