Assets hidden in cryptocurrency can be traced during divorce

There are a number of difficult issues that arise during a divorce, and property division is one of them. Even though divorcing parties have the right and duty to share their finances through interrogations, depositions and documents, it is an unfortunate reality that some people do try to hide their assets. With advances in technology, the methodology has changed and, in fact, with the introduction of cryptocurrency, many believe concealing assets has become easier.

Louisiana residents may be aware that bitcoin is a popular type of cryptocurrency because it allows people to exchange money directly. There is no middle man involved-no banks and no governmental authorities. Even better, Bitcoin wallet addresses are issued in the form of a string of numbers, meaning the owner can attempt to remain anonymous.

Divorce experts have methods to weed out finances being hidden through bitcoin. If the money is being transferred through a Bitcoin exchange, then that’s the first place to look. Even if purchases are not taking place through an exchange, a large unexplained withdrawal can also raise red flags. If the person who has made the withdrawal cannot explain what it was used to do, it might be possible to argue that the money used was a marital asset and property division arrangements should take this into account.

Trying to hide assets during a divorce is against the law and not looked upon favorably by the courts. If a Louisiana resident believes their spouse might be trying to do so, they may want to consult an experienced attorney to get guidance on how to proceed.