Cryptocurrencies are digital currencies that are stored entirely online. They use encryption techniques that allow transactions to be done anonymously, without a central bank or a government authority.
NASDAQ reports that an estimated 46 million Americans now own Bitcoin, the most well-established form of cryptocurrency. Cryptocurrency values have also been reaching record highs over the past couple of years.
The “hidden” nature of cryptocurrency and it’s potential to be a high-value investment may tempt spouses to conceal their stash.
If you’re facing a divorce in CO and you’re worried your spouse may be hiding assets, a
Colorado divorce lawyer from Goldman Law can help.
Tracking Down Cryptocurrencies
Due to the secure and anonymous nature of cryptocurrencies, it can be nearly impossible to track them down.
There are some indicators and lifestyle changes, however, that may make one suspect the presence of hidden funds. For example, their spouse may unexpectedly make a large purchase or have a lot of extra money.
With the help of a forensic expert, a person who is worried that their spouse is hiding money like cryptocurrency can track down their spouse’s accounts through the following methods:
- Check the spouse’s bank statements for transfer records.
- Check the spouse’s electronic devices for digital currency login credentials or ticker symbols.
- Look for confirmation emails from exchanges.
- Check tax returns for records of cryptocurrency income.
- Check previous loan applications for mentions of cryptocurrency investments
While these methods may work for older and more established cryptocurrencies like Ethereum and Bitcoin, it can be much harder to track down lesser-known cryptocurrencies such as Dash, Zcash, Cardano, Solana, Monero and dozens of others.
Cryptocurrencies and Colorado Divorce
During the divorce proceedings, spouses are required to file a notarized affidavit called the “Sworn Financial Statement.” This affidavit should include a complete list of the couple’s assets, debts, income, and expenses.
If one party owns cryptocurrency, it should be disclosed in the affidavit and listed as either an asset or a source of income.
Cryptocurrencies, like any other type of asset, are subject to equitable distribution in a Colorado divorce. They will be valued and divided in a manner that is deemed fair for both parties.
However, since this is an asset with volatile price fluctuations, the valuation date is crucial. This can either be the date that a divorce petition is filed, the date that the spouses sign a stipulated agreement, or the date when the cryptocurrencies are divided.
Hire a Colorado Divorce Attorney Today
Anyone filing for divorce should understand how to locate and value their family’s assets. An attorney is essential to this process. They can make sure that all property division is handled per laws and regulations.
It can be challenging to find an attorney who understands how cryptocurrency is handled through divorce proceedings.
Goldman Law has helped our clients with complex divorce cases involving high-value assets and cryptocurrencies.
Contact us at (303) 656-9529 to schedule a confidential consultation.