Since the introduction of Bitcoin in 2008 the world of Cryptocurrencies and Crypto assets has grown substantially. In April 2022, the Financial Conduct Authority reported that over 2.3million people in the UK hold cryptocurrencies and last year, this was estimated to have increased to approximately 7 million.

Despite their unique and often complex nature, Cryptocurrencies are considered ‘property’ under the law of England and Wales. When looking at Cryptocurrenies in divorce proceedings , the court must consider all financial resources available to both parties and this therefore includes Cryptocurrencies.  The Court also has the power to order a ‘property Adjustment order’ in relation to the assets if appropriate.

How do I know if my spouse owns Crypto Assets?

The first step in resolving financial issues on divorce is the process of full and frank financial disclosure. This means that both parties must be open and honest about their finances and share their financial information including any Crypto assets that they hold.

There are signs to look out for when going through the disclosure process which may highlight a person holds Crypto assets including signs and transactions in bank statements and credit card statements.

You can also raise questions asking about Crypto assets which, if required, the Court can compel the other party to answer. It is important to ensure that the right information is asked for to be able to properly assess the value of any Crypto assets.

If someone fails to disclose Crypto assets deliberately and consistently, this could be considered by the Court to be an issue of that person’s conduct which can have an impact on how the Court decides to share assets between the parties at the resolution of a case.

How Switalskis can help

If you own Crypto assets and you are going through a divorce, you must ensure that you are clear, transparent and honest providing the relevant information and documents from the outset and engaging in any valuation process. Not doing so can result in serious consequences for you.

If you are concerned about your spouse hiding Crypto assets from you in divorce proceedings , seek legal advice to ensure the necessary steps are taken to work to uncover such assets and prevent them from being dissipated.