As an experienced family law attorney can tell you, many people faced with the prospect of dividing their assets in a California divorce will resort to underhanded means to try to hide assets.
The digital currency known as Bitcoin might provide a new way of concealing assets. It should be noted that whether a person uses a cryptocurrency, a safety deposit box or some other means of hiding assets that are to be divided in divorce, all such devices and schemes are illegal.
There are a number of ways in which one spouse will try to hide assets or financial information from the other:
- Understating the value of marital property
- Overstating debts
- Underreporting income
- Overstating expenses
The attempts at concealment can be as simple as hiding cash in the aforementioned deposit box or more subtle, such as overpaying the IRS before the divorce in order to get a hefty refund after the dissolution is complete.
A publication devoted to cryptocurrency (The Cointelegraph) says that though using Bitcoin to conceal assets is risky, such a scheme can make a paper trail impossible to detect. That's mainly because there is no paper trail when the currency is purchased in person with cash.
The article explains that the digital currency is as liquid as can be, but the downside is that its price can fluctuate wildly. So a Bitcoin stash might be worth $1 million one day and merely a third of that a day later.
An attorney experienced in property division disputes can help protect your rights and your full and fair share of marital assets in divorce.