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Divorce and Hidden Money: What to do if You Suspect Hidden Crypto?
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Divorce and Hidden Cryptocurrency: How to Find Crypto Your Spouse May Be Hiding
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What happens if you think your spouse is hiding money in cryptocurrency during your divorce?
First: don’t panic. And definitely don’t assume crypto is impossible to find.
In this episode of How Not to Suck at Divorce, Andrea Rappaport and family law attorney Morgan Stogsdill are joined by Jason Wright, Managing Director in the Disputes, Compliance & Investigations group at Stout, to break cryptocurrency down for the rest of us — and explain exactly what can happen when crypto becomes part of a divorce.
We’re starting with the basics: What the hell is cryptocurrency? What’s a crypto wallet? What’s a private key or seed phrase? What are Coinbase, Kraken and other crypto exchanges actually doing?
Then we get into the question that matters during divorce:
Can your spouse actually hide marital money in crypto — and can you find it?
Jason explains why cryptocurrency isn’t necessarily as anonymous or untraceable as people think, how forensic experts can follow transactions on the blockchain, and what financial clues might indicate that money has been moved into cryptocurrency.
We discuss:
• How cryptocurrency differs from traditional bank and investment accounts
• Crypto exchanges like Coinbase, Kraken and Gemini
• The difference between custodial and non-custodial crypto wallets
• What private keys and seed phrases actually mean
• Crypto ATMs — yes, apparently those exist
• Transfers and cash withdrawals that could signal cryptocurrency activity
• How forensic experts trace crypto transactions
• Why the blockchain can actually help investigators follow money
• When your divorce attorney may need to subpoena an exchange
• How to decide whether pursuing suspec