The growing use of digital currencies has introduced new ways for individuals to hide wealth during divorce. With no central bank oversight and the ability to move funds globally, cryptocurrencies make it easier to shift or disguise assets. This presents a serious concern for spouses trying to obtain a fair distribution of property.
When one spouse is more technologically skilled, it becomes easier to hide money through crypto platforms without detection. Unless there is a specific reason to investigate, hidden wallets or blockchain transactions may go undiscovered during the divorce process.
How can concealed crypto assets be recovered?
Several investigative techniques can be used to detect hidden digital assets. These steps can play an important role in revealing what may have been excluded from financial disclosures.
- Hire a forensic investigator: Forensic investigators can analyze devices, account activity and blockchain records to identify patterns that suggest undisclosed crypto holdings. Their tools and expertise are often key to finding missing assets.
- Track blockchain transactions: Once a wallet address is found, the entire transaction history can be viewed publicly. This allows investigators to verify whether coins were moved, sold or remain in digital storage.
- Request public keys during discovery: Public keys are tied to specific crypto wallets. With these identifiers, one can trace assets across exchanges and blockchain networks.
- Search for hardware wallets: Cold storage devices such as USB drives can store large amounts of crypto. These physical items can be hidden in plain sight but still contain valuable funds.
- Identify staked or locked assets: Coins may not be actively visible if they are locked in smart contracts or earning rewards through staking. These holdings still count as property and should be disclosed.
Failure to report crypto during divorce can impact how courts view fairness in property division. Seeking legal guidance can help uncover undisclosed assets and help spouses seek a fair and accurate settlement.