Why do spouses attempt to hide assets during divorce? The reasons span a wide spectrum, covering everything from genuine fears of financial distress to simply not wanting an ex-spouse to have any share of personal wealth.
In the modern age, many spouses who try to hide assets will turn to digital means to cover their tracks. However, it is still possible to spot red flags that might indicate this is happening.
Why people choose digital currency for this
CNBC discusses how spouses use cryptocurrency in order to hide assets during divorce. First, many people began turning toward this method due to the lack of oversight and general public knowledge about digital currency in the first place. It was not until recent years that things such as bitcoin and other forms of digital money started gaining recognition in the general populace.
To this day, it is still easy for people to hide assets digitally. Though the IRS and other organizations have begun to step up their maintenance and oversight of this marketplace, it is still a wide and relatively lawless place.
Behavioral red flags to look for
However, many spouses attempting to hide assets digitally will still display the same behavioral red flags that would give them away if they tried to hide assets traditionally.
For example, many will grow much more guarded about their financial matters. Some do not even want to share their receipts with their spouse. They will often grow extremely protective of their digital devices as well, due to the sensitive and incriminating information stored on them.
Keep an eye out for changing financial habits and patterns, too. Many who hide digital assets will either drop their spending significantly or increase it to a notable degree. Above all, follow your intuition. If something seems off, double-check it.