Use of Bitcoin to hide money may increase during divorce

| Jan 19, 2018 | Divorce

Navigating the dissolution of a marriage in Massachusetts can be tricky no matter how much or little money or other assets a couple has. After all, the act of untangling two financially intertwined lives can be equally painful from one couple to the next. In light of this, in some divorce situations, one of the spouses may consider using Bitcoin or other digital currencies to hide his or her money.

Bitcoin is known to offer privacy when compared with traditional currencies. For this reason, some spouses going through divorce may consider using it to conceal their assets from their future exes. This is especially true in divorce situations where high-value assets are at stake.

Still, if these spouses were to use this type of currency, their use of it would need to be planned and deliberate to be successful. In addition, during the discovery phase of a divorce proceeding, withdrawals made from a traditional bank account to purchase Bitcoin may end up being questioned. As a result, sneaky spouses may not get away with using cryptocurrencies to hide their money in the end.

The most ideal divorce situation in Massachusetts is for two spouses to be able to tackle matters such as property division through informal negotiations or divorce mediation. This will give them more control over their money than they would experience with traditional divorce litigation. However, if the spouses cannot find common ground, they have no choice but to rely on a judge to make their asset distribution decisions for them. Unfortunately, the outcome may not necessarily be what one or both parties would have wanted.

Source: bna.com, “Bitcoin the New Mattress Full of Cash for Divorce Cheats,” David McAfee, Dec. 28, 2017