Dividing property during divorce can become complicated when spouses share real estate, businesses, investments, or retirement accounts. Cryptocurrency can add another layer of difficulty because digital assets may be easier to overlook or potentially conceal than money sitting in a traditional bank account.
If you believe your spouse owns Bitcoin, Ethereum, or other cryptocurrency that has not been disclosed during a Pennsylvania divorce, it’s important to address the issue before finalizing property division.
Cryptocurrency Can Be Part of the Financial Picture
Pennsylvania divorce proceedings may involve the equitable distribution of marital assets and debts. And cryptocurrency shouldn’t be ignored simply because it’s digital. The court may consider when the cryptocurrency was acquired, where the money used to purchase it came from, and whether some or all of its value factors into the decision about how marital property is divided.
How Can Hidden Cryptocurrency Be Discovered?
Cryptocurrency transactions occur digitally, but that doesn’t necessarily make them invisible.
During the financial discovery process, attorneys may examine bank and credit card records for transfers to cryptocurrency exchanges. Other potentially relevant information could include tax records, exchange account information, digital wallets, transaction histories, or records showing purchases of cryptocurrency.
In complicated cases, additional financial or technical professionals may be needed to help identify and value digital assets.
Cryptocurrency Values Can Change Quickly
Finding an asset is only part of the challenge. Cryptocurrency prices can fluctuate substantially, meaning its value may change during the divorce process.
Valuation therefore becomes an important consideration. Determining how cryptocurrency should be valued can significantly affect the financial outcome when substantial digital assets are involved.
What If a Spouse Intentionally Conceals Assets?
Attempting to hide assets can make an already difficult divorce more contentious. If you suspect your spouse did not disclose cryptocurrency or another investment, don’t rely solely on assumptions or try to access your spouse’s private accounts without authorization.
Instead, tell your attorney what you know and preserve financial records that you can lawfully access. Your attorney can determine what formal discovery or other legal steps may be appropriate.
Protect Yourself Before Property Is Divided
If you suspect your spouse is hiding cryptocurrency or other financial assets, consider speaking with an experienced Pennsylvania divorce attorney before agreeing to a property settlement. Once significant financial decisions are finalized, correcting an incomplete financial picture may become considerably more difficult.
Jensen Bagnato, P.C. represents Pennsylvania family law clients in divorce and equitable distribution matters, and can help you identify the available options and potential challenges when dividing complex marital estates.
Contact our experienced attorneys today.