Blog

Is technology making it hard to find money in NJ divorces?

In some New Jersey divorce cases, one party may use technology to hide or move money.  The good news is that there will almost always be a trail that can be traced.

Cyrptocurrency

The use of cryptocurrency to conceal assets is a concerning trend. According to Wikipedia, “A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems… Bitcoin, first released as open-source software in 2009, is generally considered the first decentralized cryptocurrency. Since the release of bitcoin, over 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.”

Simply put, cryptocurrency is digital money. One party purchases cryptocurrency and then uses it to buy goods and services.  Alternatively, people hold cryptocurrency until it increases in value. People trade cryptocurrency from their virtual wallet to another’s virtual wallet. Without getting into the technology, the point is that cryptocurrency is becoming a more common way for people to move and hide money.

Venmo

Another technology that people are using to conceal assets is the use of apps like Venmo. According to the Venmo website, “Venmo allows you to pay and request money from your friends. At its core, Venmo provides a social way to pay your friends when you owe them money and don’t want to deal with cash. For example: Splitting a lunch bill, Paying your friend half of a cab fare, Sending your roommate your half of the rent.” Or, moving money to a friend to hide it from your spouse. The friend then cashes in the transfer and gives the money back.

Gift Cards

One of the most common tricks is the purchase of gift cards. One party takes cash from a marital account and buys gift cards.  The party spends gift cards the same way as cash.  I have seen cases where thousands of dollars’ worth of cards are purchased and then used to support the person’s lifestyle. This is essentially the same as stealing cash from the other party. The most commonly purchased gift cards are Visa, American Express, and store cards.  Most times, there is a way to find out where and when the cards were purchased, and spent.

As you can imagine, it can be difficult to locate the “paper trail” through these technologies.  Because of the difficulties involved, I often need to bring in a forensic accountant to help track down assets and some accountants even specialize in the area of cryptocurrency. Monitor bank accounts for suspicious activity.  Keep records of all transactions.  Pay special attention to high quantities of smaller dollar amounts. These records may be the smoking gun that will be needed to find your assets.

If you have any questions, please contact me at jlawrence@lawlawfirm.com.

Back to Blog
SHARE THIS POST:

Related Posts

Blog
Jeralyn Lawrence Interview by Jessie Frees of WMTR 1250 AM Radio Station – Part V

Jessie Frees of WMTR 1250 AM Radio Station’s host of Ask The Expert interviewed Jeralyn Lawrence, a New Jersey Divorce and Family Lawyer.   This is Part V of a five part series of transcripts from the radio interview with Jeralyn. Ask The Expert Host Jessie Frees of WMTR 1250 AM Radio Station Interview with Divorce…

Read More
Blog
Coping with the aftermath of your divorce

How to Move on After a Divorce The Holmes-Rahe Stress Scale is a tool used by mental health professionals to gauge the difficulty of a life event, and divorce is second on the scale only to the death of a spouse. Divorce attorneys and other professionals warn that divorce is an extremely traumatic process for…

Read More
Blog
Jeralyn Lawrence Interview by Jessie Frees of WMTR 1250 AM Radio Station – Part IV

Jessie Frees of WMTR 1250 AM Radio Station’s host of Ask The Expert interviewed Jeralyn Lawrence, a New Jersey Divorce and Family Law Attorney.   This is Part IV of a five part series of transcripts from the radio interview with Jeralyn. Ask The Expert Host Jessie Frees of WMTR 1250 AM Radio Station Interview with…

Read More
Blog
Jeralyn Lawrence Interview by Jessie Frees of WMTR 1250 AM Radio Station – Part III

Jessie Frees of WMTR 1250 AM Radio Station’s host of Ask The Expert interviewed Jeralyn Lawrence.  This is Part III of a five part series of transcripts from the radio interview with Jeralyn. Ask The Expert Host Jessie Frees of WMTR 1250 AM Radio Station Interview with Divorce and Family Law Attorney Jeralyn Lawrence –…

Read More
Blog
Divorce Counseling: The Good and the Bad

The Good and Bad of Divorce Counseling Family court systems favor combining divorce mediation and divorce therapy as it can be an effective way to solve problems and reach agreements with minimal involvement from judges. According to recent industry surveys, most divorce attorneys, mental health professionals, and social workers who specialize in divorce agree with…

Read More
Blog
Jeralyn Lawrence Interview by Jessie Frees of WMTR 1250 AM Radio Station – Part II

Jessie Frees of WMTR 1250 AM Radio Station’s host of Ask The Expert interviewed Divorce and Family Lawyer Jeralyn Lawrence.  This is Part II of a five part series of transcripts from the radio interview with Jeralyn. Ask The Expert Host Jessie Frees of WMTR 1250 AM Radio Station Interview with Divorce and Family Law…

Read More

Disclaimer and information can be found here, including links to descriptions and selection methodologies. No aspect of this advertisement has been approved by the Supreme Court of New Jersey.