WORCESTER 508-471-3018
Metro West 508-709-0024

Bitcoin: futuristic currency or way to hide assets in a divorce?

There have been a lot of advancements in the last 10 years that have not only changed the way we look at the world but how we navigate in it as well. While most of these advancements are beneficial to society, there is one innovation that has many legal experts concerned, particularly for people who are about to go through the divorce process.

We're talking about Bitcoins. If this is your first time hearing about Bitcoins, you're not alone. Despite increased talks about the new cryptocurrency, many people here in Massachusetts and across the nation have never heard of it. In a nutshell, Bitcoin is a digital currency that is not regulated by a centralized government or banking system.

Many people the world over are hailing Bitcoin as the currency of the future because it allows users to make anonymous transactions with a relatively minimal paper trail. Some have argued that this protects users by reducing the likelihood of fraud. But it's these anonymous transactions that have some legal experts concerned.

As you may or may not know, it is considered unlawful to hide assets prior to or during the property division step of a divorce. Oftentimes, the act of hiding assets can be discovered by following a spouse's financial transactions. It's this metaphorical paper trail that gives many spouses piece of mind because they know it will lead the courts to the missing funds, allowing for a fairer distribution of assets.

But because Bitcoin transactions are done with relative anonymity, paper trails are difficult to follow, meaning a spouse may be able to hide assets prior to separation, retrieving them later once the divorce is finalized.

As you can see, this could create considerable problems for just about any divorcing couple, which is why it is often considered a good idea to monitor your assets prior to beginning the dissolution of marriage process.

Although not every person will consider hiding assets during a divorce, it never hurts to be prepared for the worst while hoping for the best. It also can't hurt to bring up potential concerns with your attorney so that they can advise you in how the law applies to your particular situation and how best to proceed with your divorce negotiations.

Sources: Daily Finance, "Bitcoin: The New, High-Tech Way to Hide Assets in a Divorce," Robert Pagliarini, June 16, 2014

Bitcoin, "Frequently Asked Questions," Accessed Dec. 16, 2014

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

An Impressive Track Record
Of Achievement In The Law


Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions