How are crypto assets valued for divorce?

The Economist may have said that “there is no sensible way to reach any particular valuation” for cryptocurrencies in August 2018, but crypto assets have increasingly become relevant in financial remedy proceedings. As such, the courts are required to consider the valuations provided, as well as the extent to which they should rely upon them.  

Obtaining a reliable valuation of crypto assets is more difficult compared to valuing traditional assets though, as they generally trade in a highly volatile market and are subject to more extreme fluctuations in value.  

Like quoted shares, the value of crypto assets will be determined by reference to their share price. However, a valuation obtained a few weeks ago may be very different to one obtained today. For example, whilst Bitcoin hit an all-time of $73,000 in March 2024, it fell to $61,000 in June 2024. Therefore, the court may set a specified date for valuation or take an average over a chosen time period. Where the parties have significant crypto assets, it will be advisable that they instruct a forensic accountant with crypto expertise. 

If you’re considering or going through a divorce and you or your spouse have significant crypto assets, we can help. Click below for a free initial consultation with one of our expert divorce solicitors. 

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