Digital assets have become increasingly common in divorce property division agreements. These can be challenging to divide if a couple owns cryptocurrency or non-fungible token (NFT) assets like artwork. The value of them can rise and fall significantly and frequently.
Another problem, of course, is that they can be difficult to find if one spouse is good at hiding them. Just as forensic accountants and analysts were becoming skilled at finding assets in the Cayman Islands, this whole new type of assets intended to be anonymous sprouted up.
They can be found – if you know where to look
Cryptocurrency and NFT transactions are traded on blockchains. There are multiple blockchains out there, so you need to know where to look. Whether they have shared crypto and/or NFT assets or not, many couples are specifying that all digital assets must be included as they submit their financial disclosures early in the divorce proceedings.
If you believe that your spouse may be hiding digital assets, or making cryptocurrency or NFT purchases to hide assets, you may be able to do a little sleuthing on your own. Not everyone who hides digital assets is especially adept at it. Are there unexplained withdrawals from your accounts, for example?
It’s always best if you can get a clear picture of your and your spouse’s finances before you even mention divorce – and before they change passwords or move money around. That includes finding out about digital assets. If that point has passed and you believe after seeing your spouse’s financial disclosure that significant assets are missing, it’s wise to consider the further legal options available to you.