Can I Find Out if My Spouse Owns Cryptocurrency in a Divorce?

By Michael DiFalco
Partner

Cryptocurrency is a digital asset that has become a significant investment for many people across the country, including in New York. However, cryptocurrency can add complications to a divorce, particularly when it comes to dividing assets between divorcing spouses. In this blog, we will explore how cryptocurrency is treated in a divorce, whether a spouse can hide assets in cryptocurrency, and how a family lawyer can help with digital assets in a divorce.

How Is Cryptocurrency Treated in a Divorce?

Cryptocurrency is treated as an asset like any other kind of asset and is subject to equitable division in a divorce in New York. If the cryptocurrency was purchased before the marriage, it may be considered separate property. Still, if the value of the cryptocurrency increased during the marriage, it may be considered a marital asset subject to division.

The division of cryptocurrency can be handled in different ways during asset division. It could be liquidated, and its cash value divided, divided into both spouses’ crypto wallets, or one spouse may forgo a share in cryptocurrency holdings in exchange for a larger share of other types of marital property.

Can My Spouse Hide Assets in Cryptocurrency?

One concern in divorces where cryptocurrency is an issue is whether one spouse can hide assets in cryptocurrency. Due to the anonymity of cryptocurrency, it can be challenging to uncover hidden crypto assets. If a spouse suspects the other party has undisclosed crypto holdings, their family lawyer may seek a court order to reveal their computer records or any accounts with major cryptocurrency wallet providers.

A forensic expert can be brought in by the parties to search for cryptocurrency tickers, login credentials for exchanges, or keys for certain types of digital wallets. Bank statements, credit card statements, and other financial documents may indicate transactions for crypto purchases from various exchanges. Some exchanges might send confirmation emails or other documentation. In addition, some people may have documented their own crypto income in the past for tax returns, loan applications, or other documents.

How Aiello & DiFalco Help with Digital Assets in a Divorce

At Aiello & DiFalco, our experienced family lawyers can provide guidance and advice on how to deal with cryptocurrency assets during a divorce. We understand the complexities involved in cryptocurrency assets and can help you navigate the asset division process effectively. We can help you identify all your marital assets, including cryptocurrency, and ensure that they are divided fairly.

We can also help you if you suspect that your spouse is hiding assets in cryptocurrency. Our team of skilled family lawyers can help you obtain a court order to reveal their computer records or any accounts with major cryptocurrency wallet providers. We can also work with forensic experts to search for cryptocurrency tickers, login credentials for exchanges, or keys for certain types of digital wallets.

Cryptocurrency can add a layer of complexity to a divorce, particularly when it comes to dividing assets between divorcing spouses. While it is subject to equitable division in a divorce, its division can be handled in different ways. If you are concerned about how your or your spouse’s cryptocurrency assets could affect your divorce or the asset division process, contact the experienced family lawyers at Aiello & DiFalco for a consultation.

About the Author
I am a partner at Aiello & DiFalco LLP, and my priority for my clients is to guide them through an arduous court case to provide them with the opportunity to write the next chapter in their life. I tailor my approach to each client’s priorities and positions, and to the extent that matters can be predicted, I will always provide a realistic perspective of how the law could be applied to the particular facts and circumstances of a case. Since I thrive on helping people and solving problems, I bring an optimistic and positive approach to practicing in a very difficult area of law. With more than a decade of experience handling hundreds of cases, I have the ability to get results on the issues my clients view as priorities. When cases or certain issues cannot be settled, I have a solid record of success at trials, hearings, and on appeals. Feel free to contact me for a free initial consultation, I am always available to help.