During a divorce, hiding marital assets refers to the act of one spouse attempting to prevent certain money or property from being included in the equitable division between both parties. As a Certified Public Accountant (CPA), Certified Fraud Examiner (CFE), and Certified in Financial Forensics (CFF), I have seen and read about numerous divorce cases where one spouse was discovered concealing assets.
A couple going through a divorce is supposed to list all the assets they own together. That means bank accounts, houses, retirement plans, businesses, even things like art or jewelry. These days assets also include cryptocurrency—like Bitcoin, Ethereum, or other digital coins and assets. If a party in the divorce hides or attempts to hide an asset, they are breaking the rules—and in most cases, the law.
Some people move money to accounts in other names, give cash to family or friends to “hold,” or claim something isn’t worth as much as it really is. With cryptocurrency, it can be even sneakier. Someone might keep coins in a digital wallet under a different name, use offshore cryptocurrency exchanges, or not mention they ever bought any cryptocurrency or digital asset. People attempting to hide assets in a divorce will often use cryptocurrency to hide money because cryptocurrency is unconnected to banks and easily transferable.
CPAs help lawyers and courts uncover hidden assets by looking at tax returns, bank records, credit card statements, and business books to find out if something looks off. If someone’s been buying crypto, there’s usually a money trail although even if it takes a little more time to research. For example, if someone took out cash or made a wire transfer to a known cryptocurrency platform, that could lead us to the hidden asset.
If a judge finds out a party in the divorce has hidden an asset from the other party and the court, that person could lose the hidden asset completely or could face penalties. In some cases, it’s even considered fraud.
In conclusion, maintaining honesty during a divorce may be challenging, but it is preferable to being discovered concealing assets. A fair split means both people get to move on and rebuild their lives, and if kids are involved, it helps keep things stable for them too. Cryptocurrency doesn’t make someone invisible—it just takes longer to search for the cryptocurrency.
