By Ryan J. Cotter
Smart watches displaying the owners non-fungible token (NFT). Bitcoin hitting the lowest value since 2020. Whether you have expanded your investment portfolio to include crypto currency or not, there is no denying its growing presence in today’s market.
As crypto’s popularity has risen, so have the concerns of divorcing spouses that their partner may be hiding assets.
Typically, by the time a couple has reached the point of dissolving their marriage, the trust they once had has been shattered. They begin to question things they may not have second guessed before the relationship went south. An in-depth analysis of the finances belonging to the marital estate may be in order to determine whether there has been a breach of the fiduciary obligation each party has to the marriage.
Crypto Currency Assets
The complex world of crypto currency may have some fearful they are not getting full financial disclosure from their soon to be ex-spouse. Individuals involved in divorce proceedings are required by law to disclose any and all assets. In a case where the spouse doesn’t comply, you are not without options. Whether it is an offshore account in the Bahamas or Bitcoin exchange-traded funds, a skilled forensic accountant can track it down.
A best practice for anyone in a relationship, headed for divorce or not, is to be well informed about your finances as a couple. The more knowledge you have regarding the marital estate, the better protected you are from having an issue. At the very least, be aware of the general financial landscape for both your individual and joint assets and what red flags to look for. These include bank or brokerage statements from institutions you weren’t aware of or unexplained withdrawals or deposits.
Ethereum, Bitcoin and all the other cryptocurrencies may have introduced a new facet to the investment world, but they are just another vessel for cash, not a safe haven to conceal assets.
For more information on the ways a forensic accountant can protect you during divorce litigation, watch for the next article in this series – 5 Reasons You Need a Forensic Accountant.
If you have questions or concerns regarding PA’s new corporate tax structure, please contact your Louis Plung advisor or email [email protected].