With the increasing popularity of cryptocurrencies, divorce attorneys are witnessing a growing trend of individuals hiding their digital assets such as Bitcoin from their partners during divorce proceedings.

In a recent case in New York, a woman discovered that her husband had concealed 12 Bitcoins worth $500,000 in a previously undisclosed crypto wallet, leading to a shocking revelation that could impact the division of assets.

CNBC reported on Saturday that the woman, identified as Sarita, became suspicious when her husband, who earned an annual income of $3 million, failed to disclose significant assets in their ongoing divorce case.

Seeking answers, Sarita enlisted the help of a forensic accountant who utilized blockchain transaction analysis to trace her husband’s hidden cryptocurrency investment.

She said:

“I know of Bitcoin and things like that. I just didn’t know much about it. It was never even a thought in my mind because it’s not like we were discussing it or making investments together. … It was definitely a shock.”

Growing Trend of Hiding Bitcoin and Other Digital Assets in Divorces

Acknowledging that cryptocurrency is increasingly being considered an asset in divorce proceedings, IBB Law asserts that parties have a duty to provide full and frank disclosure of all financial information. Failure to do so can result in contempt of court, which can lead to fines or even imprisonment.

Source: IBB Law

If there is evidence that a party has failed to disclose crypto investments, the court may draw inferences about the existence of those investments and award a smaller share of assets to the non-disclosing spouse.

According to divorce attorneys, hiding cryptocurrency from spouses has become increasingly common, posing challenges for legal professionals due to the decentralized and unregulated nature of digital assets. Attorneys in Florida, Texas, New York, and California have reported that crypto plays a role in approximately 20% to 50% of the divorce cases they handle, according to an NBC news poll.

Challenges Of Tracing And Accounting For Hidden Crypto Assets

Talking to CNBC, Kelly Burris, a divorce attorney from Texas, highlighted the difficulty of obtaining information about cryptocurrency holdings. He stated:

“The thing with cryptocurrency is it’s not regulated by any kind of centralized bank, so usually you can’t subpoena somebody and get documents and information related to somebody’s cryptocurrency holdings.”

Burris added that this lack of regulation and oversight makes it easier for tech-savvy individuals to conceal their crypto assets from their partners.

The rise of cryptocurrency as a method of hiding assets during divorce proceedings has presented challenges for both attorneys and forensic investigators. The complexity and rapid development of the cryptocurrency world require specialized expertise to trace and account for hidden assets effectively.

Nick Himonidis, a licensed private investigator and computer forensic expert specializing in cryptocurrency investigations, noted the increasing prevalence of crypto-related cases.

Expressing his sentiments to CNBC, Himonidis stated that approximately a quarter of his divorce-related cases involve cryptocurrency elements. While some cryptocurrencies are easier to track, such as Bitcoin and Ethereum, the emergence of privacy coins like Monero has made tracking transactions and identifying parties involved more challenging.

The evolving landscape of cryptocurrency has also raised concerns about privacy and the difficulty of obtaining accurate financial information during divorce proceedings. Lawyers and courts are struggling to keep up with the complexities of digital assets, often relying on specialized forensic experts to uncover hidden crypto holdings.

Positive Developments in the Digital Realm of Relationships

While the case of Sarita and her husband showcases the darker side of cryptocurrency in divorces, there have been positive developments in the digital realm of relationships. The metaverse has become a popular venue for couples worldwide to tie the knot.

Since 2021, numerous couples have celebrated their weddings in metaverse-based virtual venues, allowing friends and family to participate and witness the joyous occasions. Such is one held for the first time in September last year, by The Sandbox, a decentralized blockchain-based metaverse.

As the use of cryptocurrency continues to grow, experts anticipate that financial infidelity involving digital assets will remain a challenge for divorcing couples. It highlights the importance of transparency and communication in financial matters within relationships, especially regarding investments and assets that can easily be concealed or manipulated in the digital age.

AiDoge (AI) - Meme Generation Platform

Our Rating

AiDoge crypto logo
  • Create & Share AI-Generated Memes
  • Newest Meme Coin in the AI Crypto Sector
  • Listed on MEXC, Uniswap
  • Token-Based Credit System
  • Stake $AI Tokens to Earn Daily Rewards
AiDoge crypto logo
Learn More