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Bitcoin: Some New Asset Protection Strategy in Divorce Proceedings

"Asset protection" has long been a technique in divorce cases across us. The term "asset protection" refers to the utilization of a legal strategy so as to cover or shield assets from the Courts. Bitcoins, the relatively new internet currency, will presumably become the subsequent frontier of asset protection.

In divorce cases, asset protection can take many forms. Sophisticated asset protection techniques involve transferring money to a foreign account, the formation of legal entities (trusts, corporations, indebtedness companies), and other methods.

The most unsophisticated and straightforward sort of asset protection, and maybe the foremost common in divorce cases, is just holding money within the sort of cash (i.e., inside a home safe or during a bank safety deposit box). during this way, an individual that's within the process of divorce believes that he can "protect" the cash from the divorce process. The divorcing spouse might keep the existence of the cash secret from his spouse, lawyer, and Court, so as to avoid being ordered to share the cash together with his spouse. This strategy may or might not achieve success, but it's surely not legal because it requires that the person misrepresent his assets to his spouse and to the Court.

A sophisticated lawyer will skill to uncover hidden assets of this type through the examination of monetary records and other means of legal discovery. Bitcoin, however, has the potential to exchange the hiding of money because of the commonest sort of asset protection in divorce cases. 

Bitcoin is that the digital currency that was created in 2009 by the anonymous developer known by the pseudonym Satoshi Nakamoto. it's a currency that exists only in digital form. All bitcoins and transactions are "registered" on the bitcoin blockchain that's updated by bitcoin users instead of a centralized authority. The transactions, however, don't include names but rather the digital identification of every bitcoin. Bitcoin owners keep their bitcoins during a bitcoin wallet. The wallet isn't necessarily a physical wallet, but rather various methods for storing the digital identification of the bitcoin. The wallet could be kept on a computer, the server of a bitcoin wallet website, or maybe a bit of paper.

While is theoretically possible to trace the transfer of a bitcoin by examining the blockchain, one will only discover the general public identification key of the bitcoin instead of the name of the owner. If the wallet is kept on an individual's computer or on an internet site (where a celebration to a divorce registered his name) it's possible to discover the existence of the bitcoins. However, wallets don't need to be related to a reputation. Furthermore, if an individual uses a "brain wallet" tracing a bitcoin to a selected person becomes almost impossible through any conventional method. A brain wallet is that the use of a memorized passphrase so as to store a bitcoin.

The methods for locating hidden cash are going to be the primary approach of any lawyer for locating a bitcoin asset protection plan. Unfortunately, many, if not most, divorce lawyers and judges are unacquainted with bitcoins, and therefore the incontrovertible fact that bitcoins are often wont to hide assets. A lawyer who doesn't understand bitcoins cannot possibly be expected to uncover hidden bitcoin assets. If you've got any suspicion that your spouse could be hiding assets, confirm your lawyer understands the bitcoin system and the way to get hidden bitcoin assets