Divorcees hide true financial value through digital assets
Divorcees often include their digital assets, like cryptocurrencies, into their divorce settlements. Some of us even transfer cryptocurrency to new accounts, while others leave these assets in the account they used for the divorce. But did you know that it is possible to hide the true value of these assets?
(part of an article) Financial records rarely disclose the true value of marital assets. A 2013 study of marriage dissolution found that divorcees hide a significant portion of their wealth through assets like cars, real estate, and stocks. Couples commonly under-report the value of their assets, and they tend to overestimate how much they would need to divorce in order to be financially independent.
If you’re going through a divorce, you’ll likely face the unfortunate task of not only dividing up assets you acquired during your marriage, but also ensuring that you have a truly fair split. With this in mind, you may have experienced great relief when you found that prenuptial agreements, which were once the most common way for couples to manage their finances, have fallen out of favor.. Read more about digital assets and let us know what you think.
Summary of the situation – Divorced people use digital assets like Verge or ZDash to hide money. – According to the researchers, not all digital currencies are detectable. The rise of digital assets like bitcoin has prompted divorced people to hide their money better. Since cryptocurrencies do not require a user or name to be stored, you can easily hide the money that matches your spouse. About 20 million Americans currently own cryptocurrencies, according to financial statistics. The market value of digital currencies also reached a new record of $2 trillion in April. These bullish impulses can attract people who are considering divorce and hiding money. Sandra Radna, a divorce lawyer in Long Island, New York, finds this new way to hide money a problem. It’s not easy to keep up with the digital assets that have popped up in the decentralized market. Radna points out that it is difficult to determine whether investments in cryptocurrencies have taken place, and then find evidence of it. While some divorced individuals have known about cryptocurrencies for years, others may have forgotten to trade them. Radna points out that divorced people can also spend hidden money by changing their lifestyle once the procedure is over.
Means of identifying undisclosed accounts of digital assets
Radna, along with other experts, can retrieve electronically stored information that incriminates the divorced woman. These experts look for clues about identifiers, cryptocurrency transactions, exchanges or other movements. You can also confirm that the emails are linked to a working crypto-currency wallet. You can even create a long list of all cryptocurrency transactions made before the divorce. The spouse can also include cryptocurrencies in previous loans to increase approval.
Some crypto-currencies cannot be traced
While Bitcoin and Ethereum are digital assets that can be easily tracked, other cryptocurrencies are difficult to track. For example, tokens like Grin, Horizen, Dash, PIVX, Zcash or Verge are 100% anonymous cryptocurrencies. But when it comes to tracking cryptocurrencies used abroad, there can be other challenges. If lawyers can properly track cryptocurrencies domestically, it will be difficult to verify international transactions. Producers must consider the value of cryptocurrencies before entering the market, but it is profitable. The person participating in this process must determine how much money they want to hoard between crypto investments and accept the risks. Radna also clarifies that not all divorces will be investigated, but only those that get a lot of attention. These researchers usually take large sums of money. Costs may also increase due to complexity. Digital assets can be hidden between different systems for buying and trading cryptocurrency. A divorce lawyer thinks a $5,000,000 crypto currency investigation isn’t worth it. People should think carefully before taking action, as the overall cost of such an investigation can do more harm than good.