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What happens to crypto assets during a divorce?

WHAT HAPPENS TO CRYPTO ASSETS DURING A DIVORCE?

Crypto assets (such as Bitcoin, Ethereum and NFTs (non-fungible tokens)) are subject to the duty of disclosure in divorce proceedings, meaning that they are treated just like other assets; they must be disclosed to the other party and the court.

If the crypto assets are considered a matrimonial asset, then it will be available for division between the parties.

HAS MY PARTNER BEEN HIDING MONEY IN CRYPTO?

Identifying and locating crypto assets can be complex and will require a financial analysis of the disclosure documents exchanged between the parties so as to trace these assets. 

Crypto assets are entirely digital, and their ownership is generally anonymous. It is possible to transfer crypto assets to different digital accounts, held in different jurisdictions, which makes tracing these types of assets a little more difficult.

However, Vardags is uniquely placed with their in-house financial forensics team, capable of completing the financial analysis required to trace digital assets.

ARE CRYPTO ASSETS VALUED DURING PROCEEDINGS?

Crypto assets are highly volatile compared to traditional financial assets. Their value can change from one moment to the next.

In financial remedy proceedings, the judge will rely upon a single joint expert to prepare a valuation report, confirming the market value of the crypto assets.

 

If youre considering or going through a divorce, click below for a free initial consultation with one of our expert divorce solicitors.

 

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Frequently Asked Questions

During the process of divorce, one of the elements is the exchange of information relating to finances, known as disclosure. This is done in order to determine what a fair division of the assets will be. However, there are instances where one or both of the parties conceal or misrepresent deliberately the value of their assets. Should it be the case that certain assets are not included during disclosure, it cannot be divided, even if it’s the case that it is later discovered it is likely already be disposed of. These kinds of assets are known as hidden assets and should either party be discovered to be hiding assets, the court will take serious action against them. 

All parties in a divorce are under a duty to provide “full and frank” disclosure. This means that they have to tell you about all their assets and income. Unfortunately, some wealthy spouses think that they can hide their assets – placing them under the control of companies, or moving them offshore.

Vardags are very experienced in these types of cases. Our in house forensic accountancy team can search for assets across the globe, and are experienced at understanding and unravelling complicated corporate structures.

The best way to ensure your assets are protected is to conduct a thorough and accurate valuation.

The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you.

OUR LEADERSHIP TEAM

Ayesha Vardag

Founder & President Ayesha Vardag Founder & President Divorce & Family
“Ayesha Vardag - Britain's top divorce lawyer.” 
The Telegraph

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Chief Executive Officer Stephen Bence Vardags CEO
“Dr Stephen Bence is a financial genius.” 
Lewis Marks KC

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Senior Partner - Divorce & Family David Lister
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