What if My Spouse has a Safety Deposit Box Filled with Cash?

Paper currency existed long before the arrival of digital banking, and it is still used by many spouses in Georgia. Some even prefer to conduct transactions in cash due to habit, traditional mindsets, or even distrust of the modern banking system. But whatever the case may be, paper currency can certainly pose a host of issues for divorcing spouses in Georgia. A classic example is a safety deposit box filled with an unknown quantity cash. How is such an asset handled in the event of a divorce?

How Can a Spouse Hide Funds Using Paper Currency? 

The basic premise is simple: A spouse might withdraw a small amount of cash each month and put it in a secret safety deposit box. Over the short term, this is a relatively insignificant amount. Yet, if someone does this over several decades, it could amount to a significant sum for the parties. . The spouse who is not removing the cash from the account may not realize the funds are being removed because the cash amount is low enough not to trigger any concern.

This strategy is even more effective for a spouse who is paid in cash – or someone who owns a business that accepts cash. For example, a barber or a restaurant owner may pocket a certain amount of cash each month and put the money aside in a deposit box. There will be no record of the transactions taking place, and therefore the money will be essentially invisible in the event of a divorce. Accessing these funds may be very difficult for spouses in Georgia who are approaching divorce.

Could the Elimination of Cash Streamline Divorce Proceedings?

 There has been much talk about the elimination of paper money in the near future. This coincides with the introduction of Central Bank Digital Currencies (CBDCs). The subject is highly controversial in nature, as many people have concerns that CBDCs will lead to higher government control and the lack of financial freedom. The theory is that with CBDCs and the elimination of cash, governments will theoretically have the power to control the population through financial incentives and penalties without their consent.

CBDCs might actually streamline the divorce process though because a paper trail will exist in the form of Blockchain entries. This information could make it easier for spouses to pursue equitable division in the case of a divorce. With greater tracking and control over financial transactions, spouses maybe unable to conceal funds and engage in time-tested moves such as cash-laden deposit boxes. Of course, this is all something that may occur at some point in the future.

Where Can I Find a Qualified, Experienced Divorce Attorney in Georgia? 

If you’ve been searching for a qualified, experienced Atlanta divorce attorney, look no further than Kaye, Lembeck, Hitt & French. We know that there are many complex situations that may arise during the property division process in Georgia. With our help, you can navigate these roadblocks with efficiency as you strive for financial security. Book your consultation today to determine the most appropriate course of action.

Sources: 

investopedia.com/terms/c/central-bank-digital-currency-cbdc.asp

atlantafed.org/economy-matters/economic-research/2022/05/27/atlanta-fed-research-CBDC-precursors