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How one spouse could throw off the divorce settlement

On Behalf of | Jun 4, 2014 | Property Division |

Divorce is not easy. There is no getting around that fact and there will be many people in Reading who will rely heavily on their support systems as they start, continue and end the divorce process. What can make the divorce process particularly difficult, however, is having one or both spouses refuse to cooperate. One way for divorces to go more smoothly is for both spouses to be open and honest, which can be difficult if dishonesty is what led to the end of the marriage.

One area in which it is particularly important for Reading couples to be honest is about marital assets and property. Pennsylvania law requires an equitable distribution of assets and debts, which means that if one spouse is hiding money or property, he or she will likely bring down the other spouse’s portion of the divorce settlement. Of course, most spouses realize this, so it is safe to assume that if one spouse is hiding assets, he or she is doing so to throw off the settlement.

Forensic accounting has always been a way to determine if a spouse has been hiding money. It can be a complicated process, but one that is, regrettably, necessary in some divorces. There have been advances, however, that are making it harder and harder to track money that one spouse may be trying to squirrel away. One such advance is Bitcoin and electronic currency.

Bitcoin can be used relatively anonymously, which makes it an ideal way to hide assets from a spouse and his or her lawyer. It can be particularly effective when the money is transferred to other individuals and held overseas. In time, however, forensic accountants will likely be able to find assets hidden via Bitcoin, too.

Source: CNBC, “Bitcoin could be used to hide assets in divorces, warn lawyers,” Jane Croft, June 3, 2014