Let us review your family law matter
443-557-4153
Law Office of Marla Zide, LLC

How Bitcoin could impact property division process

Few Maryland residents are aware of the technological advancement associated with cryptocurrencies. This field focuses on providing clients with the ability to conduct financial transactions with anonymity. Unfortunately, some spouses who are facing a divorce will try and use Bitcoin and similar platforms to attempt to shield assets from the property division process.

Bitcoin users can create an account, then deposit or transfer funds into that account. Their identity is carefully protected, which makes it difficult to determine who is the "owner" of any given account. In cases of divorce, some spouses will create a Bitcoin account for the purpose of transferring funds into that account to remove them from the base of marital wealth.

While technology has led to astounding advancements and plenty of options to use those resources improperly, there are also plenty of ways to uncover such behaviors. A forensic accountant can look through a family's financial documents, and can find discrepancies that suggest the improper removal of marital funds. Bitcoin does a great job of protecting its users' identity, but with the right level of investigation, it is possible to determine the presence of an account, and who owns the funds held within.

For those in Maryland who are concerned that their spouse may have taken action to shield assets from the property division process, there is plenty that can be done to address the issue. Working with a divorce attorney and forensic accountant is a great place to begin. In cases where significant assets have been transferred to platforms such as Bitcoin, being able to prove those activities is key to seeking a fair and just outcome.

Source: The Huffington Post, "Hiding Assets with Bitcoin in Divorce", David Centeno, Feb. 23, 2017

No Comments

Leave a comment
Comment Information

Have Your Case Evaluated Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

email us for a response

Office Location

7310 Ritchie Highway
Suite 910
Glen Burnie, Maryland 21061

Toll Free: 800-584-1215
Phone: 443-557-4153
Fax: 410-760-9434
Map & Directions