Shielding Assets Through Cryptocurrency
Careful consideration of financial assets is part of divorcing, and in the digital age the rise of cryptocurrency has added a new layer of complexity to the process. After all, reviewing a person’s checking account balance and investment accounts will not include digital holdings, improperly shielding them from distribution.
If you are moving toward separation and divorce in Florida and you know your spouse is in possession of cryptocurrency or suspect they are holding digital assets, connect with a knowledgeable Port St. Lucie family law attorney. Doing so is a key step to securing a fair and comprehensive divorce agreement.
Understanding the Digital Assets Landscape
Cryptocurrency, such as Bitcoin, Ethereum, and other digital coins, was once a financial outlier, but digital assets have become an increasingly popular investment and wealth preservation tool. Because these assets exist in a decentralized digital space, there can be unique challenges to putting a fair worth on the assets and dividing them.
It is important to work with professionals who understand the cryptocurrency landscape and know strategies used by individuals who are trying to hide various assets from distribution. For example, a person who holds digital assets could be utilizing cold wallets. A type of offline storage solution, cold wallets are designed to provide crypto holders with a way to store cryptocurrency offline.
A spouse who invested in a cryptocurrency early in the marriage may have seen significant gains to their initial investment. You need to be sure you are receiving a fair amount of all assets, and if they transferred the cryptocurrency to a cold wallet in an effort to keep the digital assets inaccessible during the divorce proceedings, you need a professional on your side to bring these assets to light.
Ensuring Full Asset Disclosure
Full and honest disclosure during divorce proceedings is essential, and this includes digital assets. Experienced family lawyers understand the complexities of crypto holdings and work diligently to uncover any attempts to shield or hide cryptocurrency. They employ forensic accounting techniques and collaborate with financial experts to trace transactions, review financial records, and ensure that the divorce settlement accurately reflects the true value of the marital estate.
Failing to secure all assets during divorce proceedings, including digital assets like cryptocurrency, can have significant consequences for one’s financial future. So it’s important to not turn a blind eye to undisclosed or hidden assets as discovering hidden assets post-divorce can result in costly legal battles.
By working with a Port St. Lucie family law attorney and taking proactive measures to ensure transparent asset disclosure, individuals can safeguard their financial interests and achieve a fair divorce settlement. Addressing the complexities of cryptocurrency during divorce promotes a smoother legal process and lays the groundwork for a more secure future post-divorce.
Could you use advice on whether to pursue mediation or another resolution option? The legal team at Baginski, Brandt & Brandt can help you navigate the intricacies of divorce, especially when digital assets are involved. To connect with the strategic planning and legal expertise you need, schedule a confidential consultation. Contact us today to schedule your fee-free appointment.
