The amount of New Yorkers who hold cryptocurrency assets has made this a more challenging issue in a divorce. This is an asset and is part of the marital estate. However, the unique nature of cryptocurrency and some of the difficulty in tracing it can mean that some spouses use it to try to hide their assets in a divorce.
Failure to declare assets in a divorce can lead to punishment if caught. Simply stated, judges in divorce court do not like it when one or both parties are dishonest during the process in an attempt to keep more money. However, the other spouse must catch them hiding assets first. In the case of cryptocurrency, this can sometimes be difficult.
In some cases, cryptocurrency assets can be tracked down because the bank statements will show that checks are being written to or deposited from a cryptocurrency exchange. However, a spouse who has some expertise in the subject area may be able to hide their assets if they know the right steps to take to cover their tracks. The legal infrastructure may not be advanced enough to catch this as divorce laws still reflect past times instead of current conditions. Given that over five percent of New Yorkers hold these types of assets, this can become an increasingly important issue in future divorces.
Those who suspect their other spouse is hiding assets in a high asset divorce can turn to an attorney to help them try to track them down. The lawyer may be able to turn to the court system for the ability to be able to access the other spouse’s records in an attempt to find hidden assets. The attorney could cast a wide net and try to persuade the court to allow them to access as much information as necessary to find these assets.