How Cryptocurrency Is Dealt With in Separation & Divorce

Property settlements can be complicated when finalising the financial aspects of a relationship. It is a requirement that separating spouses/partners provide full disclosure of their assets to each other in property settlement proceedings.

But what about your online assets? Have you ever thought about how cryptocurrency is dealt with in family law proceedings?

What is Cryptocurrency?

Cryptocurrency, such as Bitcoin, is a virtual unit of currency that operates outside traditional banking systems. A characteristic of cryptocurrency is its anonymity. People can convert their assets into cryptocurrency to conceal their true possessions.

Compared to other assets such as cash and money in banks, cryptocurrency can be easily concealed. Once a unit of cryptocurrency has been purchased or an asset is converted into a cryptocurrency, the ownership of the unit of cryptocurrency can be untraceable. Cryptocurrency is retained in a ‘digital wallet’ and works similarly to a physical wallet. Only the owner of the cryptocurrency knows where the money is held unless they decide to share the information.

Issues in Family Law Proceedings

Cryptocurrency’s anonymity causes an issue when it comes to financial disclosure in family law proceedings. People may assume that cryptocurrency is difficult to trace and, accordingly, fail to disclose the asset to the other party and the Court.

As of 10 June 2025, the Family Law Act now explicitly includes the legal duty of full and frank disclosure, meaning parties must disclose all assets, liabilities, and financial resources, including digital assets like cryptocurrency. Failure to disclose cryptocurrency holdings can lead to serious consequences, including the orders being set aside or costs orders made against the non-disclosing party.

Another issue is the difficulty in valuing cryptocurrency, which can fluctuate dramatically over the shortest period. The nature of this fluctuation causes potential risk if the value of the cryptocurrency rises greatly following Court orders. This may result in one party profiting immensely at the other party’s detriment.

Unfortunately, once orders are made by the Court, they are made in full and final settlement.

Additionally, if the non-disclosure or control of cryptocurrency amounts to financial or economic abuse, this may now be a relevant factor when the Court determines what adjustment, if any, should be made.

How to Deal With Cryptocurrency?

Given that cryptocurrency is somewhat new, the Court is yet to make definitive case law on a standardised approach to all matters involving digital currency. However, it has been suggested by the legal profession in the United Kingdom, who have dealt with such matters, that when disclosing cryptocurrency, it should be valued several times throughout the property settlement to monitor any drastic fluctuations and safeguard the accuracy of the valuation.

This can help address the volatility of cryptocurrency and support accurate assessment of each party’s current and future financial position — a key consideration under the updated Family Law Act.

Nevertheless, if you are a party to family law proceedings, you ought to abide by your obligations under the Family Law legislation to provide ‘full and frank disclosure’. This obligation is now legislated, and non-compliance may result in penalties, variation of orders, or cost consequences.

Contact Us

At Bambrick Legal, we can assist you with the disclosure of all assets and liabilities for family law proceedings to ensure parties receive a fair share of the asset pool. Alternatively, we can help protect your assets in case of a family breakdown.

For more information, contact us at Bambrick Legal today. We offer a free, no-obligation 30-min consultation for all enquiries.