These days, more and more people have digital assets. Especially with the cryptocurrency and bitcoin trend of recent years, people have bigger digital wallets than ever before.
But how do these assets factor into divorce?
Hidden money in crypto
As CNBC discusses, cryptocurrency often comes into play in divorce situations. Sometimes, people actually use crypto as a way to hide assets from their spouses. Until recently, many people did not know about cryptocurrencies or pay attention to the digital assets market.
This allowed people in the know to hide their money by buying bitcoin and other cryptocurrencies. They could then wait until the divorce got finalized and cash out on their digital investments, translating their bitcoin currency back into “real” money.
Of course, it is much harder to do so these days, since most people know about the value of digital assets and understand the importance of carefully monitoring someone’s digital wallet.
Bitcoin also features in divorce when couples have to figure out how they want to divide the contents of digital wallets. This depends on numerous factors, of course, such as the overall value of the currencies in the wallet.
What makes bitcoin hard to track?
Due to the mercurial nature of bitcoin and cryptocurrencies, many people have trouble pinpointing the exact worth of these digital wallets. This can cause a bit of trouble when it comes to asset division, which often depends on precise measurements of wealth.
Thus, many people going through asset division will hire an expert on cryptocurrencies in particular. This allows people to rest at ease knowing that their digital wallets will get the proper treatment.