Cryptocurrency and Divorce: What You Need to Know

Board Certified Family Law Specialist Matt Arnold answers the question: ” Are overtime, bonuses, and commissions included in calculating child support?”

We live in a digital age in which practically everything can be done online, including exchanging money via cryptocurrency. Cryptocurrency has been in the news recently, but many people do not understand what that is. Cryptocurrency is changing the way that people around the world invest, store, and exchange money. It is also a way spouses might be hiding assets during a divorce. Additional information about asset division during divorce can be found here.

Cryptocurrency means “a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.” Basically, it is digital money that is not kept in a traditional bank account. Instead, it is a way for people to exchange money digitally, without a bank being involved. One of the types of cryptocurrency you might have heard of is Bitcoin, but there are other types that are used. The appeal of cryptocurrency to many people is that it is anonymous, digital, and is not easily traceable. There are not many, if any, regulations on it because of the newness in the markets. Many people use crypto currency as a means to protect their assets.

You might be wondering how cryptocurrency relates to divorce. In North Carolina, marital property is subject to equitable distribution. This means that a couple’s property is divided equitably between them at the time of divorce. It is important to note that equitable does not mean equal. Instead, a judge will decide what is the fair distribution of property between the couple. Cryptocurrency comes into this if one spouse has digital assets that the other spouse might not be aware of. Since cryptocurrency is so undetectable and anonymous, it can be difficult to find hidden assets and put one spouse at a disadvantage in the distribution of assets. However, there are signs to look out for to uncover discrepancies that might be related to cryptocurrency:

Bank Accounts: Old bank statements could indicate suspicious transfers. The money to fund cryptocurrency has to come from somewhere and suspicious withdrawals or transfers from an old bank account could be the source.
Tax Returns: There may be irregularities or declarations of assets that one spouse did not know about
Credit Reports: A credit report of the spouse suspected to have cryptocurrency might show odd financial activity.
Private Investigators: If old, or current, financial activity does not show any suspicious activity, a private investigator with expertise looking into the financial history to find irregularities and cryptocurrency.

The family law attorneys at Arnold & Smith, PLLC are here to help you through your divorce. As technology grows, so do the ways in which people try and hide their assets. Our attorneys are dedicated to uncovering everything there is during the divorce process so that you receive what is fair and equitable under North Carolina law. It may seem daunting to look through financials of your spouse and realize they hid assets, but we are here for you. Contact us today for a consultation so that we get you on the road to safety. If you find yourself facing a complicated family law matter and need the help of experienced family-law attorneys in or around Charlotte, Lake Norman, or our new office in Monroe, please contact Arnold & Smith, PLLC today at (704) 370-2828 or find additional resources here.

The family law practice group at Arnold & Smith, PLLC includes two Board-Certified Family Law specialists and one Child Welfare Law specialist, as well as several attorneys with many years of family law experience that are committed to providing a powerful voice to individuals facing the often-tumultuous issues in this area of law. The range of issues our family law clients may be facing include pre- and post-nuptial agreements; separation agreements; post-separation support; child support (both temporary and permanent); absolute divorce; divorce from bed and board; military divorce; equitable distribution of assets; child custody (both temporary and permanent); retirement benefits and divorce; alimony and spousal support; adoption; and emancipation. Because this area of the law is usually emotionally charged and complicated, the family law attorneys at Arnold & Smith, PLLC act with the utmost dedication to ensure that each client understands his or her options, and then act to achieve the best result possible for that client’s particular situation.

Source:

https://www.lexico.com/en/definition/cryptocurrency

https://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_50/GS_50-20.html

Image Credit:

https://www.freeimages.com/photo/bitcoin-1056983

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