Introduction: Digital Currency and Divorce Don’t Always Mix
Cryptocurrency has introduced new layers of complexity into Florida divorce proceedings. Assets like Bitcoin, Ethereum, and hundreds of altcoins are easily transferable, difficult to trace, and often misunderstood—even by experienced professionals. In high-conflict or high-asset divorces, cryptocurrency is becoming one of the most common tools used to hide marital assets, manipulate equitable distribution, and obscure income.
For clients and attorneys alike, it’s no longer enough to understand traditional finance. Today, proving the existence of digital assets can be the key to securing a fair and accurate divorce settlement. Yet unlike conventional bank accounts or titled property, cryptocurrency is decentralized, pseudonymous, and—if managed deliberately—designed to evade scrutiny.
A Tampa divorce lawyer with knowledge of digital assets must be prepared to identify red flags, initiate targeted discovery, retain forensic experts, and pursue court remedies when cryptocurrency concealment is suspected. This article offers a deep dive into the intersection of cryptocurrency and hidden assets in Florida divorce cases and outlines how a Tampa divorce lawyer can protect clients from losing their fair share.
What Is Cryptocurrency? A Primer for Divorce Litigation
Cryptocurrency is a digital asset that uses cryptographic technology and blockchain systems to record and verify transactions. These assets are decentralized—meaning no single government or financial institution oversees them. Common cryptocurrencies include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Solana (SOL)
- Cardano (ADA)
- Monero (XMR), a privacy coin designed to hide transactions
Unlike traditional bank accounts, cryptocurrency is held in a “wallet” and secured by a private key. Wallets may be “hot” (internet-connected) or “cold” (offline hardware devices). Transfers can occur directly between wallets or through centralized exchanges like Coinbase, Binance, Kraken, or Gemini.
Because crypto transactions are often pseudonymous, they can be used to conceal financial activity if a spouse fails to disclose their holdings during divorce.
How Cryptocurrency Is Used to Hide Assets in Divorce
Cryptocurrency’s defining features—anonymity, portability, and decentralization—make it a tempting vehicle for asset concealment. In Florida divorce cases, spouses may use crypto to:
- Move money into digital wallets before or during separation
- Fund wallets with cash or peer-to-peer transfers, bypassing banks
- Store crypto on cold wallets or external drives
- Purchase obscure or privacy coins not easily tracked
- Convert digital assets into NFTs (non-fungible tokens) or stablecoins
- Delay disclosure until after property division is finalized
A Tampa divorce lawyer must understand how crypto works, how it can be manipulated, and where to look when assets don’t appear to match known income or lifestyle.
Florida’s Legal Standards on Disclosure and Equitable Distribution
Under Florida law, all marital assets and liabilities must be disclosed and equitably divided. This includes cryptocurrency acquired during the marriage—even if held in one party’s name or wallet.
Florida Statutes § 61.075 governs equitable distribution, which includes:
- Classifying assets as marital or non-marital
- Valuing those assets accurately
- Distributing them fairly based on statutory factors
Failure to disclose assets—whether digital or traditional—violates both the rules of procedure and the court’s expectations of good faith. A Tampa divorce lawyer may use discovery tools to compel disclosure, and courts can award sanctions or even reallocate the hidden asset entirely to the innocent spouse.
Red Flags That Your Spouse May Be Hiding Cryptocurrency
In Florida divorces, hidden digital assets often leave behind clues. Some of the most common red flags include:
- Significant Cash Withdrawals with No Corresponding Purchases
Crypto is often purchased with cash or through platforms that accept ACH transfers or debit transactions. - Involvement in Tech or Finance Industries
Spouses with technology backgrounds are more likely to understand and use cryptocurrency. - Use of Crypto Terminology in Conversation or Messages
Phrases like “cold storage,” “seed phrase,” “MetaMask,” or “hardware wallet” are telltale signs of crypto knowledge. - Presence of Mobile Apps or Browser Extensions
Applications like Coinbase, Binance, Trust Wallet, or Brave browser wallets may indicate active use. - Missing USB Devices or Secure Storage Drives
Hardware wallets like Ledger or Trezor are small devices designed to store crypto securely offline. - Unexplained Fluctuations in Income or Spending
Sudden swings in apparent liquidity could signal unreported crypto activity.
A Tampa divorce lawyer must follow these breadcrumbs through discovery, subpoenas, and forensic investigation.
Discovery Strategies for Uncovering Cryptocurrency
Cryptocurrency may be harder to trace than traditional assets, but it is not invisible. A Tampa divorce lawyer can use several discovery tools to locate and value digital holdings.
- Interrogatories and Requests for Production
Demand disclosures of all digital wallets, exchange accounts, transaction history, wallet addresses, and device locations. - Subpoenas to Centralized Exchanges
Platforms like Coinbase, Binance.US, Kraken, and Gemini are subject to subpoenas. They store:- Know Your Customer (KYC) information
- Transaction records
- Linked bank accounts
- Wallet addresses
- Forensic Accounting and Blockchain Analysis
A forensic accountant can:- Identify transfers to or from crypto exchanges
- Review IP addresses and timestamps
- Trace blockchain transactions to wallet addresses
- Determine coin types and current market value
- Depositions Under Oath
A spouse can be questioned about wallet access, trading habits, knowledge of digital assets, and explanations for missing money. - Device Imaging and Expert Review
If permitted by the court, a forensic IT specialist can review computers, phones, or storage devices for wallet files or apps.
A Tampa divorce lawyer may request a court order authorizing inspection of digital devices if there is probable cause for concealment.
Valuing Cryptocurrency in Florida Divorce Proceedings
Valuation of crypto holdings can be challenging due to volatility. The court may use:
- Date-of-filing value
- Date-of-distribution value
- Market price on a specified date
- Average daily balance
Each method has benefits and drawbacks depending on coin volatility and party conduct. A Tampa divorce lawyer should:
- Obtain historical price data from reliable exchanges
- Work with a financial expert to establish valuation standards
- Use screenshots, account statements, and blockchain data as evidence
Failure to value crypto correctly can lead to inequitable distribution, especially if coins appreciate or disappear before trial.
Enforcing Disclosure Through Court Action
If a spouse refuses to disclose crypto assets or violates discovery orders, a Tampa divorce lawyer can:
- File a Motion to Compel Disclosure
- Request Sanctions under Florida Rule of Civil Procedure 1.380
- Seek Contempt of Court for violating discovery or disclosure rules
- Ask for an Adverse Inference that hidden assets exist
- Demand Reallocation of the asset or value to the innocent party
In egregious cases, the court may reopen a judgment under Rule 1.540 based on fraud or newly discovered evidence—even after the divorce is finalized.
Real-Life Examples of Cryptocurrency Concealment
- The Cold Wallet in the Closet
A spouse claimed all digital assets were lost in a crash. During discovery, a Tampa divorce lawyer found a cold wallet device in a safe deposit box—holding $180,000 in Bitcoin. - The Undisclosed Exchange Account
A bank subpoena revealed transfers to a crypto exchange not listed in the spouse’s financial affidavit. Subpoenas to the exchange showed years of trades and a current balance of $70,000. - The Blockchain Trail
Using a known wallet address from a previous transaction, forensic analysts traced movements of Ethereum to a “burner” wallet. The wallet still held $25,000 in unspent coins.
These examples show how concealment can be exposed with the right tools and vigilance. A Tampa divorce lawyer can use legal process to convert digital silence into court-admissible evidence.
Dealing with International and Offshore Crypto Exchanges
Many offshore exchanges do not comply with U.S. subpoenas. However, a Tampa divorce lawyer can:
- Use domestic records to show outbound transfers
- Subpoena intermediary banks or payment platforms
- File motions for disclosure of foreign assets
- Demand party-specific disclosure backed by sanctions for nondisclosure
Courts may award compensatory assets or monetary offsets when exact recovery is not possible due to international obstacles.
Using Injunctions to Prevent Dissipation of Crypto
Cryptocurrency can be liquidated and moved across borders in seconds. To prevent this, a Tampa divorce lawyer can:
- File an emergency motion for a temporary injunction
- Request asset-freezing language in the temporary order
- Prohibit the transfer or disposal of any digital assets during litigation
If the court finds intentional dissipation or destruction of evidence, remedies may include full reallocation of the dissipated asset to the innocent spouse.
NFTs and Digital Property: A Growing Frontier
Non-fungible tokens (NFTs) represent ownership of unique digital content—art, video, music, or digital real estate. Like cryptocurrency, NFTs can be:
- Bought and sold anonymously
- Held in digital wallets
- Traded without clear valuation standards
If an NFT was acquired during the marriage, it may be marital property. A Tampa divorce lawyer can:
- Demand disclosure of all NFTs and connected wallets
- Retain appraisers to estimate fair market value
- Track transaction history using blockchain explorers
NFTs should not be ignored simply because they are new. They are assets, and Florida law requires their inclusion in the marital estate.
Spousal Duties and Legal Remedies
Spouses owe each other a fiduciary duty during divorce. This includes:
- Full disclosure of all assets
- Truthful financial affidavits
- Good faith cooperation in discovery
Concealing cryptocurrency violates this duty. A Tampa divorce lawyer can hold the dishonest spouse accountable through:
- Requests for unequal distribution under § 61.075(1)(j)
- Attorney’s fees and litigation costs
- Contempt motions and civil penalties
- Reversal or modification of property division post-judgment
Courts take concealment seriously, and digital assets are no exception.
Preventive Measures for Future Divorce Proceedings
Even before litigation begins, a Tampa divorce lawyer can:
- Serve preservation letters requiring retention of all wallet and exchange records
- File for financial restraining orders on digital holdings
- Demand early production of exchange statements
- Use expert financial interrogatories focused on crypto behavior
Early pressure often flushes out reluctant disclosures and protects against last-minute transfers or deletions.
How a Tampa Divorce Lawyer Can Help
A Tampa divorce lawyer who understands digital assets can:
- Identify warning signs of concealment
- Draft targeted discovery requests
- Retain forensic analysts to trace wallet transactions
- Subpoena exchanges for account verification
- Value crypto assets fairly and equitably
- Structure marital settlement agreements that include crypto terms
- Enforce disclosure through court orders and sanctions
Dividing cryptocurrency is no longer a fringe issue. It’s central to equitable distribution in modern Florida divorces.
Conclusion: Digital Assets Require Strategic Legal Attention
Cryptocurrency has transformed how people store and transfer wealth—and how they hide it. In Florida divorce cases, these assets are subject to the same disclosure and distribution rules as any other property. But uncovering and valuing crypto requires specialized knowledge and legal strategy.
Whether you suspect your spouse of hiding Bitcoin in a digital wallet or undervaluing NFTs in their financial affidavit, legal remedies exist. A Tampa divorce lawyer can use Florida’s discovery tools, expert analysis, and court enforcement to expose hidden assets and ensure you receive your fair share.
Technology may change—but the obligation to be honest in divorce remains the same.
FAQ: Cryptocurrency in Florida Divorce Cases
Can cryptocurrency be divided in a Florida divorce?
Yes. Crypto acquired during the marriage is marital property and subject to equitable distribution.
What if my spouse refuses to disclose their crypto assets?
A Tampa divorce lawyer can issue subpoenas, request sanctions, and ask the court to reallocate concealed assets in your favor.
How do I find out if my spouse owns crypto?
Look for app usage, bank transfers to exchanges, tax filings, or USB devices. Discovery can force disclosure of wallets and transactions.
Can the court freeze crypto assets during divorce?
Yes. Courts can issue temporary injunctions preventing the sale, transfer, or concealment of digital assets.
What if my spouse uses a foreign crypto exchange?
Subpoenas may not work overseas, but bank records and forensic tracing can provide indirect evidence of asset transfers.
How are NFTs treated in divorce?
NFTs are considered property. If acquired during the marriage, they are marital and subject to valuation and division.
Can my spouse say they lost their crypto wallet?
They can try—but courts can infer concealment, especially if there’s no credible proof of loss. Adverse inferences and penalties may apply.
Do I need a forensic accountant to trace crypto?
In many cases, yes. Forensic experts can trace wallet activity and value crypto holdings using blockchain analysis tools.
What if crypto gains value after divorce is filed?
Valuation date matters. A Tampa divorce lawyer will argue for a date that ensures fairness based on case facts and Florida law.
Is crypto income considered in alimony or child support?
Yes. Income from crypto trading, mining, or investment can be included in support calculations under Florida guidelines.
The McKinney Law Group: Your Legal Partner Through Divorce in Tampa
Divorce isn’t just about what’s ending—it’s about what’s next. At The McKinney Law Group, we help Tampa clients move through divorce with integrity and preparation, creating legal solutions that support a stronger future.
We assist with:
✔ Preparing and filing for divorce with a detailed strategy
✔ Protecting parental rights and crafting custody solutions
✔ Addressing division of shared property, investments, and businesses
✔ Building spousal support terms that are fair and enforceable
✔ Making post-divorce adjustments when life evolves
Schedule your consultation at 813-428-3400 or [email protected].