When dealing with divorce, asset hiding may potentially come up. This happens when a spouse engages in various tactics in an attempt to keep assets out of the divorce process.
Why does this happen, and how do people do it?
How asset hiding works
CNBC discusses digital asset hiding in divorce cases. Generally speaking, a person wants to hide assets so they can keep the entire asset to himself or herself without having to share with their spouse. They often have various reasons for doing this, ranging from fear of financial instability to disdain toward their partner.
Digital asset hiding is one of the newer forms of asset hiding. It utilizes cryptocurrency, a form of digital currency like bitcoin. The actual tactic is not new, however.
When hiding assets like this, a person will purchase a stock of cryptocurrency. They will then hide this stock away and leave it unused or let it grow. Their overall intention? To sell the stocks after the divorce gets finalized, so they can take that money back without having to divide it.
This is similar to another asset-hiding tactic, in which a person will buy high-priced items like electronics or cars with the intention of returning or selling it after the divorce to get their money back.
Taking action in the face of hidden assets
Of course, any form of asset hiding is illegal, including digital asset hiding. If you suspect your partner of engaging in this behavior, consider hiring a forensic financial analyst to see potential options for digging into this suspicion.