When going through divorce, it is beneficial to understand what digital asset hiding is. After all, any person could potentially engage in this action.
What exactly is digital asset hiding? What red flags can you keep an eye out for?
How asset hiding via bitcoin works
CNBC discusses how people use cryptocurrency to hide money in divorce. Cryptocurrency is a type of digital currency. Different types exist, such as bitcoin.
A person may hide assets through this method by purchasing stocks of bitcoin or other cryptocurrencies. They intend to hold onto these stocks until after the divorce gets finalized. Then, they will either sell the stock to get their money back or continue generating income with this stock.
The overall goal is to create a stash of money that you cannot find and do not have access to. It is similar to a more traditional approach to asset hiding, in which the spouse will buy an expensive item and then return it or sell it after the finalization of the divorce.
Red flags to watch for
The biggest red flag that a spouse might have hidden digital assets is a furtiveness about their financial information and their digital devices.
Some level of wanting personal space is normal. But if your spouse refuses to share any financial information with you without an affidavit, or if they do not even want you looking at their receipts or phone, it could indicate that they have something else to hide.
If you suspect that, you can hire a forensic financial analyst to learn more.