Case study: hidden crypto in a divorce brought into view
Date: | Week: 35 | Reading time: 7 minutes | Updated: Author: Simcha Schrijver
In short
Hidden crypto in a divorce is often not visible straight away. Crypto is usually not found on the blockchain itself, but in the paper trail around it: an old bank payment, an email from a platform or a tax return.
Paucitas is an independent expert firm in the Netherlands that maps out crypto wealth, in hundreds of cases a year. Sometimes there does turn out to be more. Sometimes a suspicion proves unfounded. Either way, everyone knows where they stand afterwards.
Get in touch with Paucitas or ring +31 20 244 5774. You will soon hear whether your suspicion can be investigated.
In a nutshell
Suspecting hidden crypto is hard, for both sides. Paucitas establishes neutrally what existed on the relevant date, without taking sides. What that means legally is for the solicitors and the court.
A divorce is upheaval enough. If you also suspect that crypto has been left out of the picture, or you are the one being accused of it, that causes a great deal of worry. That is completely understandable. In this composite example from practice you can read how such a suspicion was looked into calmly and factually.
How do you find hidden crypto in a divorce?
Through the trail outside the blockchain. You cannot look up a wallet without an address. But a payment to a trading platform does show up on a bank statement. That payment points to a platform, a period and often an address. From there the rest can be followed.
The starting point is often thin. There are no addresses, no passwords and no statements. Just a memory that crypto was once mentioned, and a pile of old statements. That is usually enough to begin.
Which 3 trails lead to hidden crypto?
- Bank statements with payments to a platform or payment provider, sometimes under a name that says nothing about crypto.
- Emails from an exchange, such as confirmations, password resets or newsletters.
- Tax returns in which crypto was once declared.
Which records yield the most in your situation varies from case to case. Paucitas looks at that with you. If you find nothing in those records yourself, it is less likely that a large balance has been left out. But if you do find payments and do not know where they went, a neutral assessment is sensible.
Not sure whether your suspicion is right? Let Paucitas take a look, without obligation. You can ring us any time, 24/7, on +31 20 244 5774.
An example from practice
One party had made a financial disclosure without any crypto. The other remembered it being discussed years earlier. Both solicitors instructed Paucitas jointly, with a fixed valuation date and price source.
Three small payments more than six years old brought a forgotten platform into view. The account was neither empty nor hidden. It had slipped out of sight because the platform changed its name and the emails went to an old address. Both solicitors could then work from the same figures.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
Does that mean something was deliberately concealed?
That is not for an expert to say. A deliberately concealed balance and a forgotten account look almost the same on paper. An investigation establishes what demonstrably existed, not what someone knew or intended. Whether something was concealed is a legal question for the solicitors and the court.
That is exactly what makes an investigation valuable for both sides. Anyone with nothing to hide gets peace of mind. Anyone with a suspicion gets clarity.
How is crypto valued when dividing assets?
For each holding, the amount on the valuation date is multiplied by a price from a public source agreed in advance. That the source and the time are fixed beforehand matters more than which source it is. Otherwise each party picks its own price. For a token that was barely traded, a range is fairer than a single figure. Read more about the general approach in crypto in a divorce: mapping out the assets.
Why does a joint instruction often work better?
Because the report itself then does not become the subject of dispute. If both solicitors agree on the question, the valuation date and the price source in advance, the evidential value is stronger. Paucitas also works at the request of one party, as an independent expert. GOV.UK explains how money and property are divided when you divorce or separate.
What Paucitas does for you
Paucitas works it all out for you: the bank records, the platforms, the addresses, the route of the money and the timeline. Paucitas also reads through emails, messages, documents and other communication, so you get the full picture of what there was and where the money went, step by step. For each address and platform the balance on the valuation date is established, with the transaction hash of every transaction. Paucitas does all tracing itself, without tracing tools. You receive a report that anyone can follow and understand step by step, including the solicitors and the court.
- Neutral: holdings, source and value are established separately, without a view on who is right.
- Costs: every investigation is tailored. You get a bespoke quote in advance that we go through together, with no surprises.
- Turnaround: from the same day to around two weeks.
If an estate is also involved, read crypto in an estate. If the other party already had a report made, Paucitas can review it, see a second opinion on a crypto report.
Want to know what can be established in your situation? Get in touch for a free intake, or ring +31 20 244 5774. Via the form you will hear from us within 1 to 3 hours.
Source: GOV.UK, money and property when you divorce or separate.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about hidden crypto in a divorce
Can a report prove my ex-partner concealed crypto?
Paucitas establishes in a report which holdings demonstrably existed on the valuation date. Whether something was concealed is a question for the solicitors and the court.
What if I have no addresses or passwords?
Paucitas sees that often. Bank statements, emails and tax returns are usually the best starting point. We look at what there is with you.
Can Paucitas work for both solicitors at once?
Paucitas can do that, and a joint instruction with a fixed valuation date and price source often works best.
How is the value of crypto determined?
Paucitas uses a price from a public source agreed in advance, on the valuation date. For thinly traded tokens we give a range.
How long does such an investigation take?
Paucitas takes anything from the same day to around two weeks, depending on the case. You get a bespoke quote in advance.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.