Call: 360-866-7393

4 Reasons The Bitcoin Divorce Panic Is Just Hype

Home / Divorce Blog / 4 Reasons The Bitcoin Divorce Panic Is Just Hype

In a previous article we talked about the potential danger of bitcoin and other digital currencies being used to hide assets in a divorce. Unlike traditional assets, bitcoins exist only as computer code and can be transferred anywhere in the world instantly and anonymously. The new technology of digital currency appears ripe for abuse.

While the hype surrounding Bitcoins may make it seem too tempting for dishonest folks to resist, there are several limitations that may make it only a footnote in the history of financial malfeasance.

Hard to Buy

Transferring cash into Bitcoins is actually rather difficult to do. Most people buy Bitcoins from large exchanges which are registered with local and national governments. Much like banks, these exchanges require proof of your identity. They also record all your transactions and keep records which can be subpoenaed.

It is possible to buy Bitcoins anonymously over the internet, but the risk of fraud is extremely high and often involves bringing cash to a Starbucks to make the exchange. Not the safest way to buy things.

Still Have a Paper Trail

While Bitcoins are transferred in the cloud, purchases can still produce a paper trial. The money used to buy digital currency has to be withdrawn from somewhere. The large exchanges require that funds be wired from a bank account. Debits and wire transfers to Bitcoin exchanges are clear signs to a judge that money has been moved. While the paper trail may be smaller when buying and moving bitcoins, it still exists especially if you know where to look.

Price is Highly Volatile

The Bitcoin price is extremely volatile and can move as much as $200 during a 30 day span. In the last six months the price has been as high as $900 and as low as $320 per Bitcoin. $100,000 transferred to Bitcoin in January 2014 would have been worth only $35,000 in April 2014. Bitcoin’s price instability makes it very risky.

It’s Still Illegal

Hiding assets is illegal. Bitcoins may be a new and emerging technology, however, hiding assets during a divorce by any means is still against the law. Each party in a divorce is required to attest that the list of assets and property submitted is complete and true. Failing to report all assets could lead to a charge of contempt or perjury and even time in jail in extreme cases.

Taking into account the limitations of bitcoin, it may be premature to declare digital currency the next big divorce crisis issue. Hiding assets in bitcoins requires a great deal of technological skill and effort. Until the technology is more mainstream and easier to use for the average person, it will likely not be an issue in most divorces. Still, computer programmers do get divorced.

Need a divorce lawyer?
Divorce Lawyers For Men™ attorneys help husbands and fathers going through divorce. Meet in person with a Washington divorce lawyer who will be happy to explain the divorce process to you. Call us today at 877-866-7393 to speak with divorce attorneys for men in Olympia, Washington who understand your situation and can offer real help.

If you would like more information on the divorce process, or to take the best divorce resources with you in print, please check out our free divorce guide for men or contact our office to meet with an attorney about your particular circumstances.

Real People, Real Results

Divorce Lawyers for Men Reviews

"I never thought my wife would agree to anything. After a few discussions though, we were able to agree on a lot of issues concerning the children. Divorce Lawyers for Men helped me put those agreements in writing and resolve my divorce with less conflict."

"Divorce Lawyers for Men was very helpful with my case. The staff and attorneys are very knowledgeable and provided great advice. They provided me understanding of various courses of action and brought to light specific things I wouldn't have thought of. Most importantly respected my decisions and beliefs in finalizing my case."

"My wife wanted to live in our house with her new boyfriend while I kept paying the mortgage. Divorce Lawyers for Men made sure the court saw all our property and debts. We sold the house and split the proceeds. I didn't have to pay for any free rides."

"I never wanted to get divorced. One day my wife came home and said that she had met someone else. Why do I have to lose my house and my children just because she is done with our marriage? Thankfully, I hired Divorce Lawyers for Men."

Washington's Only Statewide Family Law Network

Select an Office near You.

Bellevue
1520 140th Ave NE #200
Bellevue, WA 98005
Everett
2727 Oakes Ave #201
Everett, WA 98201
Kent
555 W Smith Street, Suite 106
Kent, WA 98032
Olympia
3025 Limited Ln NW #200
Olympia, WA 98502
Port Orchard
1740 Pottery Ave #300
Port Orchard, WA 98366
Puyallup
2102 E Main Ave #203
Puyallup, WA 98372
Seattle
701 5th Ave #4200
Seattle, WA 98101
Spokane
1008 N. Washington St., Second Floor
Spokane, WA 99201
Tacoma
1015 Pacific Avenue #301
Tacoma, WA 98402
Vancouver
237 NE Chkalov Dr #212
Vancouver, WA 98684