When going through a divorce, one of the hardest parts is always the division of assets. This is a huge stress mentally, emotionally and financially. Sometimes, you may undergo additional stress due to a spouse attempting to hide assets.
In the age of the digital wallet, asset-hiding can look different, too. However, there are some telltale signs you can potentially rely on.
Lack of regulation in crypto
CNBC takes a look into hiding assets digitally. It is important to note that until recent years, digital assets and cryptocurrency did not have a lot of mainstream attention. In fact, it was so far from the mainstream that the IRS did not even begin making plans to tax digital currency until this year.
This provided an extra layer of security and cover that many people doing illicit deeds took advantage of. For example, cryptocurrency became a huge market for those who wanted to launder money. But it saw use in many smaller-scale crimes, too, like hiding assets in divorce. After all, most spouses did not know about cryptocurrency, and even divorce attorneys were not always aware of it.
An increase of awareness
But more people have that awareness these days, making it harder for spouses to get away with their hidden digital assets.
On top of that, many will exhibit the same types of red flags no matter how they attempt to hide their assets. This includes a sudden and dramatic reduction in superfluous spending, and a new paranoia regarding letting you see their financial information or digital devices.
If you have reason to suspect your spouse is hiding assets, you could get a warrant that will let you seize their digital devices and check. This is just one available option.