Advances in technology are wonderful. While they can be enormously beneficial to individuals and society, they can also be abused and used for illegal and immoral purposes. California residents who are going through divorce may be aware of a particular technology that is sometimes employed in the creation of hidden assets.
Bitcoin is a form of virtual currency, or cryptocurrency, and like any other currency, it has an exchange rate. Users can transfer the Bitcoins to each other directly without using banks or other agencies. The currency is stored in a “wallet,” which is identified only by a string of numbers, allowing users to remain anonymous on the face of things. However, it is possible to track down a user’s identity forensically.
It is becoming more common for a person’s email correspondence to come under more scrutiny these days than their postal deliveries. Similarly, when looking for evidence of wrongdoing, it is quite common for the hard drive of one’s computer to be one of the first things to be scrutinized. In transferring cash into Bitcoin, a paper (or techno) trail will still be left behind. If one is unable to account for the distribution or disposal of funds or assets, this will undoubtedly raise a red flag that points to the likelihood of underhanded behavior.
If a California resident suspects that his or her spouse is engaging in such activity during divorce, then seeking the appropriate advice is important. The use of such attempts may point to significant concealment, and tracking down hidden assets can be quite a specialized area. It can also take a long time to get to the bottom of things, but patience can sometimes yield more than one bargained for.
Source: Huffington Post, “Hiding Assets with Bitcoin in Divorce“, David Centeno, Accessed on Aug.30, 2017