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.

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