Are your marital assets being converted into cryptocurrency?

On Behalf of | Feb 14, 2022 | Divorce

An insidious problem that crops up in some divorces is one spouse secretly converting community property assets into hard-to-trace cryptocurrencies. While it is possible (albeit expensive) to trace these crypto transactions, one first has to know that they occurred.

If you suspect that your assets are being dissipated this way, the following information could be pivotal to your getting your fair share of the community property in your divorce settlement.

Understanding the anonymity of cryptocurrency

Easily liquidated community assets like cryptocurrency get traded and sold in a flash. The “now you see it, now you don’t” aspect of crypto makes it challenging but not impossible to discover. In fact, few laypersons unschooled in the tactics of forensic accounting can follow the complex blockchain transactions that reveal crypto sales and purchases.

Start with what you know you have

Both partners in a marriage should at least have a working knowledge of their marital assets. In a community property state like Washington, this is especially important since both parties are entitled to half of these assets (and subject to division of half the debts). So, start here. Review what you have now, what you had before and what you should have if no one was playing fast and loose with marital assets.

Arrange for a forensic audit

If there are large gaps in your asset portfolio, you may need to retain a forensic accountant to trace the dissipation of your community property. But one caveat — what you seek to find should be quite substantial in order to offset the high cost of a forensic audit.

Learning all you can about the community property laws in Washington can help you determine your path to discovering hidden assets in your divorce.