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Hiding assets can be a problem in any divorce. The issue is even greater when one spouse is holding assets in cryptocurrency. These financial instruments are more complex to track and trace than traditional assets. If your spouse hides assets in a crypto wallet, they may be more challenging to locate. However, a determined attorney has steps that they can take to locate hidden assets.
Cryptocurrency Assets Might Be Subject to Division in the Divorce
First, cryptocurrency assets might be part of the marital property that needs to be divided in the divorce. New Jersey uses principles of equitable distribution to assign shares in the marital property to each spouse.
Each spouse would need to disclose their assets. They would need to disclose all accounts, and anywhere they may hold assets. They can do this informally with each other or through the court’s discovery process. Then, the spouses would negotiate an agreement that divides the assets, or a court would decide.
Crypto Trades Are Hard to Find, But it Is Possible
Cryptocurrency trades are not entirely anonymous but are much more difficult to trace than other financial transactions. The person’s name is not recorded as part of the transaction. The only thing that is associated with the transaction is the wallet number. You must locate your spouse’s wallet and know its existence first.
You would need to monitor your spouse’s behavior to look for signs that they are hiding cryptocurrency. It could be very challenging. Your attorney would cast a large net for you in discovery. They would request information from other accounts, such as PayPal and Venmo. These accounts could show transfers to cryptocurrency exchanges to purchase assets. In addition, if you share a phone account, you may be able to check the history of apps downloaded to the phone, which includes crypto exchanges.
Steps to Take to Find Crypto Assets
Your attorney could do the following to find crypto assets:
- Review your spouse’s tax returns to see if any profits or losses are disclosed on transactions.
- Review account statements to spot large cash transfers out of the account.
- Review any other applications your spouse made that require them to show a higher net worth.
- Get a court order to forensically analyze your spouse’s electronic devices to look for evidence of a crypto wallet.
Once you can locate your spouse’s crypto wallet, you may be able to subpoena the information from the exchange where it is held. The exchange would have to comply with the subpoena.
Hiding Assets in Divorce
There may be severe consequences for a spouse who tries to hide crypto assets and gets caught. However, some may think it is safe to stash their assets in crypto until the end of the divorce. You could still obtain financial information after the divorce if you suspect your ex-spouse lied during the proceedings. They could still be vulnerable if they take their money out of crypto afterward.
If you can locate cryptocurrency that your spouse had hidden, the court may favor you in asset distribution. Judges often react strongly to spouses hiding assets and may try to punish the person when they learn of it. You may even get your spouse to pay the legal fees for finding their hidden assets.
Contact Our Middlesex County Divorce Lawyers at Wiley Lavender Maknoor, PC
Our Middlesex County divorce lawyers at Wiley Lavender Maknoor, PC can assist you in your divorce proceedings. Call us at 732-494-6099 or contact us online to schedule your free initial consultation. Located in Metuchen, New Jersey, we serve clients in Middlesex County, Monmouth County, Union County, and Somerset County.
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