A guide to crypto in divorce
11th May, 2026
Following the birth of Bitcoin in 2008, the world of cryptocurrency has rapidly developed, continuing to influence and shape changes in other well-established industries. The legal industry is no exception to this, with cryptocurrency becoming a relevant topic of discussion within divorce settlements.
Dealing with a divorce can be life-changing for everyone involved. It can become more complex if one spouse has cryptocurrency assets which must be split between the separating couple.
If cryptocurrency makes up some or all of your assets, it’s important to obtain expert legal advice to support you throughout the divorce process. At Ward Hadaway, our divorce solicitors are experienced in dealing with cryptocurrency and can provide insight on hidden assets and divorce, why all assets must be disclosed and how to navigate divorce whilst owning cryptocurrency.
What is cryptocurrency?
Crypto assets are a form of digital or virtual currency that uses encryption for security and is only available online. It operates independently of any central bank or government and uses decentralised blockchain technology to record transactions across a network of computers to make it secure and transparent.
Cryptocurrency is viewed and treated as an asset in divorce and financial proceedings. Since they are recognised as property assets, cryptocurrencies are treated in a similar way to other investments, like stocks or real estate.
The objective of the Financial Remedy Court during the divorce process is to achieve a fair divorce financial settlement for both parties, meaning an accurate assessment of all marital assets – which includes crypto – must be completed at the outset of proceedings.
However, crypto can come in different forms, and these are treated differently:
- Pre-marital crypto holdings: these are digital assets acquired before marriage, and therefore may considered as non-matrimonial property depending on the circumstances of the case. However, if these assets increase in value during the marriage, or become linked with marital funds, they can be viewed as marital assets.
- Gains from crypto investments: if profit has been generated from crypto investments during the marriage, they are typically classed as marital assets, regardless of which partner initially purchased them.
- Inherited or gifted crypto assets: unless they have been used with joint funds or for marital purposes, the Court may exclude crypto received as inheritance or a gift from the marital pot.
Any crypto asset must be disclosed during the divorce process.
How to navigate dealing with crypto in divorce
It is not uncommon for people to believe that their partner is hiding crypto assets from them, especially in divorce, because it is often perceived as anonymous. However, forensic accountants can trace these transactions. Deliberately hiding crypto is a crime and if you are found to be guilty of this, you may be charged with contempt of court or perjury.
Understanding your assets and the impact of divorce on these assets, especially crypto, is absolutely essential. There are three critical steps to follow when dealing with crypto assets in divorce.
Step 1: Identify crypto assets
Concerns around hidden assets in divorce are common when one spouse controls the finances in a marriage. This could result in dealing with a high conflict divorce and other related stresses, and since the court looks at cryptocurrencies in divorce proceedings, it is crucial to understand and identify your assets as soon as possible.
The financial disclosure stage of a divorce process aims to alleviate those concerns, as both parties have a duty to provide full and frank disclosure of their finances. Questionnaires can be raised to expose concealed resources and Court Orders can be obtained against those who refuse to produce information.
Cryptocurrency poses a new challenge in this area. Part of the appeal of many virtual currencies is the security. Unfortunately, that can pose issues of traceability and the anonymous nature of cryptocurrencies can make these assets seem appealing for spouses wishing to hide money from a partner.
This does not mean you should try and conceal your cryptocurrency within divorce proceedings if you are the owner of it. Divorce solicitors are alert to the presence of cryptocurrency and can employ numerous tactics to unearth hidden assets. Concealing these assets is a crime.
When dealing with cryptocurrency in divorce, it is important to work with expert divorce solicitors, who ask the right questions from the outset and who can help with correctly identifying crypto assets.
2. Value crypto assets
Once discovered, the cryptocurrency needs to be valued.
As with any other asset involved in a divorce settlement like a house or a business, there must be a figure placed on the cryptocurrency to assist the settlement negotiations. In the same way figures are often challenged in business valuations during a divorce, crypto values may also be challenged if not dealt with appropriately.
Unfortunately, cryptocurrencies are inherently difficult to value as their price is highly volatile. Many factors can drive these price fluctuations and uncertainty of the future value of these assets can prove to be a difficult asset to devise in your divorce.
Although your partner could have built up a substantial crypto fortune when filing for divorce, as the price of cryptocurrencies can vary, the final price may have diminished by the time of settlement and vice versa.
Experts can be instructed to ensure the valuation you are utilising within your settlement negotiations is fair and impartial. This is vital for both sides and can help you in achieving amicable divorce, since an inaccurate valuation will lead to an unfair settlement.
Working with expert divorce solicitors, whether through out-of-court dispute resolution vs court-led proceedings, means your crypto assets will be valued correctly and at the right time in the divorce process.
3. Divide crypto assets
Cryptocurrencies should not be dismissed within divorce financial settlement negotiations. During a divorce, the court has the power to transfer ownership of crypto.
Due to valuation issues, it may be fairer for crypto assets to be split equally on divorce so that each party must chance selling on an exchange. However, it is entirely up to both parties if they can reach a voluntary agreement without the court’s involvement. It may be that only one party would prefer to retain the risk-laden assets.
If crypto is being transferred, careful consideration must be given to the information required by the receiver so that they can access the asset. Transferring crypto is not as easy as transferring money or property, so it is important that all the necessary information is provided to the transferee without compromising the security and privacy of the transferor.
Pending and following the final settlement, you must also consider what will happen to your crypto asset in the event of your death, including who received the ownership of these assets if your divorce is yet to be finalised. Since cryptocurrency is decentralised, it cannot be accessed by calling a bank. Therefore, you must ensure that your Will has sufficient instructions on how your crypto assets can be accessed.
Seeking expert legal advice for support throughout the entire process of dealing with cryptocurrency during divorce from our divorce solicitors at Ward Hadaway can help you and your partner achieve a collaborative divorce.
Protecting your crypto assets
If you hold significant crypto assets, you should consider taking proactive steps to protect these assets from the outset of your marriage, in the event of a divorce. Not only does this give you peace of mind, but it can reduce the need to handle emotional burnout during divorce, since your assets are already covered and accounted for.
Either a prenuptial agreement or postnuptial agreement offer a degree of protection, formally classifying your crypto asset as separate, non-matrimonial property. Prenuptial agreements and post nuptial agreements can also provide invaluable clarity on how all of your assets, including your digital assets, will be treated and split in the event of separation or divorce.
You should also begin meticulous record-keeping from the moment you acquire your first crypto asset and ensure that these records clearly outline the history of your crypto transactions, wallet addresses and exchange accounts.
Ward Hadaway’s divorce solicitors can advise on cryptocurrency
Ensuring you have clear records of your crypto assets can be extremely beneficial when dealing with the separation of assets during the divorce process, especially since you will be asked to provide full and frank financial disclosure.
At Ward Hadaway, our divorce solicitors have extensive knowledge of dealing with crypto in divorce and can provide you with the legal advice you need to ensure you handle your cryptocurrency effectively during this difficult time.
Contact us for a confidential chat.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
This page may contain links that direct you to third party websites. We have no control over and are not responsible for the content, use by you or availability of those third party websites, for any products or services you buy through those sites or for the treatment of any personal information you provide to the third party.
