Crypto causes more problems in divorces, lawyers say: CNBC

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Cryptocurrency is complicating a growing number of divorces, according to a new CNBC report. Divorce lawyers told the outlet that it is also becoming common for people to hide crypto from their partner. A woman said she found out her husband was hiding bitcoins worth around $500,000 during their divorce. LoadingSomething is being loaded.

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Disputes over the ownership of cryptocurrency, especially crypto that has been kept secret by a spouse from their partner, are reportedly becoming an increasingly common trend that divorce lawyers spot in their cases.

Financial infidelity involving secret crypto assets has made the job of financial advisors and divorce attorneys increasingly complex in recent years as the crypto market has grown, according to a CNBC article.

Lawyers in Florida, Texas, New York and California told CNBC that crypto now plays a role in around 20-50% of the divorces they handle, as it has become a more popular investment in recent years.

Lawyers and advisers are increasingly encountering clients where someone has invested hundreds of thousands or even millions of dollars in crypto without telling their partner, CNBC said.

In some complicated cases, some investigators told CNBC that one of the spouses tried to hide the money by moving their cryptocurrency to several different coins on several different blockchains to make it harder to track.

A divorced woman told the outlet that she was surprised to learn during her divorce that her then-husband, who was earning at least $3 million a year, had very few assets that could be shared during of divorce.

After months of help from a forensic accountant, the woman discovered an undisclosed crypto wallet held by her then-husband with 12 bitcoins, worth around $500,000 at the time, and a current value of just over $324,000 at the latest bitcoin price on Saturday. She told CNBC it was a “shock” to learn about the secret investments, but her story appears to be part of a growing trend.

“The problem with cryptocurrency is that it’s not regulated by any kind of centralized bank, so usually you can’t subpoena someone and get documents and information related to cryptocurrency holdings. from someone,” Texas divorce attorney Kelly Burris told CNBC.

Even when a couple is transparent about their investments, the exceptionally volatile nature of cryptocurrencies can complicate a divorce due to how quickly its value can change.

Read CNBC’s full report here.

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