Divorce and Bitcoin

[HorneyMX5]

I have a friend who has some bitcoins and the question came up of an impending divorce settlement. As bitcoin aren't held in a traditional bank account type environment can you give the wallet to someone else to avoid declaring it? There's no paper trail to prove or disprove ownership. The person who now holds the key now owns the coins, same as if you gave them all your cash?

Anyone been through or heard of this kind of situation?

[Croutons]

HorneyMX5 said:

I have a friend who has some bitcoins and the question came up of an impending divorce settlement. As bitcoin aren't held in a traditional bank account type environment can you give the wallet to someone else to avoid declaring it? There's no paper trail to prove or disprove ownership. The person who now holds the key now owns the coins, same as if you gave them all your cash?

Anyone been through or heard of this kind of situation?

Plenty of us have heard of conspiracy to defraud, yes.

[deckster]

Replace the word 'bitcoin' with 'suitcase full of cash'.

Does your friend feel lucky?

[4x4Tyke]

It doesn't matter if it is hard to trace, it should be declared like any property should.

TBH there is no point handing it over temporarily to somebody else either. I'd suggest it is far more likely to go missing that way than keeping it on a HD or flash drives. Always back it up anyway, multiple copies are not an issue, if only one person knows the key.

[theboss]

How / when did he buy them? If self-mined or if there is no paper trail then nobody will ever be any the wiser, though he is obliged to disclose. FWIW I am going through ancillary relief proceedings rights now, and have been totally transparent in my own affairs, but if I had a large sum of money in secure anonymous storage which could never be proved, I’d have my own moral dilemna for sure.

[boxst]

You *should* of course declare all money regardless of where it is. However, I would suggest that Bitcoin is more than secure against anyone ever finding that you have it. Even if there is a transaction that buys them it would take someone very switched on (unlikely) to question it.

If the partner in question knows they have bitcoins and there is a direct question that is a different thing ...

[HorneyMX5]

I believe it was mined back in the day
It's currently on a USB stick in family members safe
Said family members have no concept of bitcoin
Soon to be ex wife is aware that a known quantity of bitcoins were in held by my friend


My opinion is he should suck it up and give her half the coins or sell half and give her the proceeds. She is after all the mother of his children and he should be trying to keep her sweet, he's the one leaving after all.

[deckster]

If it's a significant quantity then of course he's going to have to be very, very trusting of this friend.

No paper trail, you say? Untraceable, you say?

"What USB stick, no idea what you're talking about mate."

[BoRED S2upid]

The bigger question is surely does she know if the answer is even a maybe then the answer is no as those law types can sniff out anything.

[johnwilliams77]

theboss said:

How / when did he buy them? If self-mined or if there is no paper trail then nobody will ever be any the wiser, though he is obliged to disclose. FWIW I am going through ancillary relief proceedings rights now, and have been totally transparent in my own affairs, but if I had a large sum of money in secure anonymous storage which could never be proved, I’d have my own moral dilemna for sure.

Like you, IF if I had a large sum of money in an anonymous storage I would certainly declare it as it's one less thing to worry about.