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Is this a sign of hidden digital assets?

On Behalf of | Mar 3, 2022 | Family Law |

Dealing with assets is one of the hardest parts of divorce in terms of the detail you must get into, the time it takes, the potential cost, and the overall outcome.

Of course, some people will try to cheat the system and circumvent how much they actually owe their spouse. They will do this by attempting to hide assets, and in the digital age, many people will try to do this digitally. How can you detect such hidden assets?

The hidden world of cryptocurrency

CNBC discusses the rising trend of using cryptocurrency to hide assets during divorce. Until recent years, cryptocurrency spent its time as a relatively unknown form of currency that primarily relied on support from small communities of supporters. Due to the lack of regulation and oversight from agencies like the IRS, many people began using digital currency as a means of laundering money or doing other illegal activities, such as hiding assets during divorce.

Universal red flags

However, many of the signs of a spouse hiding assets will remain the same no matter what method they use to hide them. First, you have behavioral give-aways. Many will grow much more paranoid about their expenses, tracking them in fine detail. They will also often seem reluctant to share even the smallest of financial information, down to simple receipts of daily purchases.

You can look at changes to their spending habits, too. In the wake of attempting to hide assets, many people will either start spending a noticeably larger amount than usual, or they may attempt to severely cut back on spending.

After noticing any potentially concerning behaviors, it is best to consult with legal help and a forensic financial analyst who specializes in digital currency.