Thread by @propelforward

Another place where #bitcoin tends to show up in litigation is in divorce, when married couples divvy up assets. In DeSouza v. DeSouza, a spouse was held to violate his fiduciary duty to his spouse by concealing #bitcoin. /1

Here, the divorcing spouse had some #bitcoin tied up in #MtGox and some held on private wallets. One spouse did not disclose the holdings until after the divorce, and the other spouse immediately sought an award of 1/2 and attorney's fees. Court agreed, noting that divorcing /2

Spouses owe statutory fiduciary duties, & failure to disclose the existence of the #bitcoin, payments to Mt. Gox, some bitcoin's ties to #MtGox & the forks of #bitcoincash and #bitcoingold amounted to breaches of duty; Court disagreed that capital appreciation mitigated /3

This spouse was fortunate that numbers went up, not down. Because everyone made money, the only sanction was atty fees & costs and comp for concealed wasted funds (45k paid to #MtGox that didn't credit btc); Otherwise, looking at potentially nasty sanctions /4

TakeAways: 1. Don't try to hide #crypto, especially if your opposing lawyer knows how to discover #crypto use; Here's a quick overview with a few tips: carltonfields.com/insights/publi… @CarltonFields

2. Bless your heart if you try this in bankruptcy court; you're looking at potential sanctions incl a loss of your discharge, money fines, or even incarceration, not to mention fraudulent transfer liability- for more on #crypto & fraudulent transfers, see: carltonfields.com/insights/publi…