Over the past several years, more and more people have begun to invest in virtual currencies, which are also commonly known as cryptocurrencies. Bitcoin, Ethereum, and a multitude of other cryptocurrencies may be bought, sold, and transferred, and since these transactions take place online, they can sometimes be hard to track. Since virtual currencies can be valuable, they may need to be considered in a divorce case. In some cases, spouses have attempted to use cryptocurrency to hide money from their partners and avoid dividing these assets during the divorce process.
Addressing Cryptocurrency When Dividing Marital Property
When a couple gets divorced, they will need to divide all of their marital property. This includes any assets that either spouse acquired during the couple’s marriage. Cryptocurrency purchased by one spouse during the marriage will usually be considered marital property, unless that spouse used only their separately-owned assets to make these types of purchases. Any increase in value of virtual currencies will also be considered marital property, and in some cases, these assets may be worth tens of thousands, or even hundreds of thousands of dollars.
Unfortunately, transactions involving cryptocurrency can sometimes be difficult to uncover. A person may use multiple online accounts to log into virtual currency exchanges, and transfers may be made to overseas accounts or using websites that are kept hidden from the public. Some spouses have taken advantage of this situation by transferring cryptocurrencies they own into multiple secret accounts with the intent of hiding these assets from their spouses. They may believe that if these transactions are not visible to others, they will be able to conceal the value of these assets they own, giving them a financial advantage once their divorce is complete.
To uncover transactions involving virtual currencies and determine the true value of a couple’s assets, it may be necessary to work with a forensic accountant who has experience in this area. An expert in cryptocurrency may be able to search through online records, uncover secret accounts, and determine when transfers have been made. They may also review bank records or tax returns to determine when cryptocurrencies may have been purchased or sold. By determining the full value of the cryptocurrency owned by a spouse, the other spouse can make sure all of the couple’s marital property will be considered correctly during the divorce process.
Contact Our Hillside Asset Division Lawyer
If you are concerned that your spouse is using cryptocurrency or other methods to hide assets during your divorce, the Law Office of Vincent C. Machroli, P.C. can help you determine the best way to address this issue. We will fight to make sure you receive a fair and equitable share of all the marital property you own. Contact our Oak Park property division attorney at 708-449-7404 to arrange a complimentary and confidential consultation.