When you are going through a divorce, one of the most contentious parts of the process is the distribution of assets.
- Who gets what?
- Why do they get that?
- How can you protect your house?
These questions and more will come up during the asset division process. However, technology is changing the way property can be hidden, and cryptocurrency is presenting challenges.
What is happening with cryptocurrency?
South Carolina is an “equitable distribution” state. This means that property only property labeled as the marital property will be divided between the two separating parties. Marital property is real or personal property acquired during the course of the marriage through with the use of marital funds.
What happens if one spouse uses marital funds to buy cryptocurrency?
An article from Bankrate suggests that cryptocurrency such as Bitcoin could be used by one spouse to hide assets from the other in a divorce process. Cryptocurrency is a virtual currency that lives online and is traded on encrypted ledgers called blockchain.
Mark DiMichael, a CPA and certified forensic accountant handled a recent divorce case involving cryptocurrency. The husband did not report $100,000 in cryptocurrency assets on his statement of net worth. During the discovery phase of the divorce, DiMichael analyzed the man’s bank statements closely and was able to trace several transactions made through a crypto-trading platform.
While that case was successfully discovered, DiMichael warns that this process can become complicated if someone is more knowledgeable about cryptocurrency. “It’s really hard to trace if the individual knows what they’re doing,” he says.
What other assets need to be distributed?
Other assets that will be examined and distributed in a South Carolina divorce could include:
- The marital residence/family home
- Pensions, IRAs, 401(k)s
- Stocks, commissions, and salaries
- Vehicles, RVs, and boats
- Other real estate
- Furniture, artwork, collectibles
- Any debts acquired
Speak to a South Carolina divorce attorney today
If you are going through a divorce, you need to seek legal assistance. At the Elliott Frazier Law Firm, we can help you through this. You can contact our Greenville asset division attorney for a consultation today so we can plan your next steps forward together.