How The Use Of Bitcoins To Hide Assets Can Affect Divorce?

You may have heard of Bitcoin, Litecoin, Monero or Zcash.  Bitcoin and these similar technologies are a way to transfer money without the traditional use of paper money or banks.  If you want to get technical, Bitcoin, Litecoin, Monero or Zcash and other similar technologies are called “cryptocurrencies.” As of 2017, it is estimated that there are almost 6 million worldwide users of Bitcoin and there are millions of other uses of Litecoin, Monero and Zcash.

Some people have tried to use Bitcoin to hide money or assets. It is inevitable, that tech-savvy spouses may soon try to use Bitcoin to conceal their assets.

It is important to know that hiding assets during a divorce is illegal and unwise. Any attempt to hide assets, whether through Bitcoin or any other means, will negatively affect your divorce. No court likes to discover that you have been trying to hide or conceal your assets.

If your spouse uses Bitcoin (or similar technologies), this will raise a big red flag to the court. Bitcoin gives its users a great deal of privacy and concealment, however, there are still ways to determine if someone is using Bitcoin. Indeed, there are now experts who can be hired to track Bitcoin usage.

Even if you do not hire an expert, and you are not able to determine each and every Bitcoin transaction, the court can demand that your spouse explain why he or she is using Bitcoin. The court may also demand that your spouse give a full accounting of each and every Bitcoin transaction.

At least for the foreseeable future, it is probably not a good idea to use Bitcoin. Even if you are using it for legitimate reasons, Bitcoin has a “bad reputation” and Judges and Courts, typically are very conservative when it comes to new technologies.

If your spouse is hiding assets, then call David Badanes and the Badanes Law Office. Our divorce lawyers on Long Island, New York have the expertise to help you. Call our office today at 631-239-1702 or email David Badanes, Esq. at david@dbnylaw.com.

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