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Can Bitcoins Hide Financial Assets?

Can Bitcoins Hide Financial Assets?

Posted By Meyers Law Group || 14-Nov-2014

When a couple chooses to get a divorce, they will find themselves searching their homes and computers for complete documentation of their property and assets. The court requires that you disclose all of this information in order to determine a fair divorce settlement for both of the parties in the divorce. However some people will still try to hide assets from a spouse in order to keep more for themselves.

Why Bitcoins Are Hard to Track

The recent use of Bitcoins has given spouses a new way to hide assets and money in divorce cases. Bitcoins are a form of currency developed in 2009 that exist completely online. Bitcoins are not a physical currency form like a coin or a bill, but rather a virtual way to pay for goods. This currency can be traded between countries since they are not attached to any governance or bank, and Bitcoin rates are the same no matter what country they are traded in or between.

Since Bitcoins are such a new concept, there are few laws that can determine how Bitcoins can be discovered or divided in the event of a divorce. If you are worried that a spouse may be hiding money in the form of Bitcoins, address these concerns with a divorce court.

One of the best ways to determine if money was hidden is the initial and unexplained loss of money. While Bitcoins are virtual currency, it requires liquid money in order to obtain Bitcoins. However, tracking down the Bitcoins after this can be tricky.

If a person is caught hiding assets, Bitcoins or otherwise, in a divorce, they can face criminal charges, additional penalties and take a hit in the divorce settlement. It is best to disclose all financial assets, including Bitcoins, rather than face severe financial and legal consequence for trying to hide property in a divorce.

Categories: Divorce