Crypto Divorce

As the world of cryptocurrency continues to evolve, it’s becoming increasingly important for family law practitioners to understand the implications of this new asset class. With the value of some cryptocurrencies soaring to new heights, the question of how to handle high inflation crypto assets in the context of a divorce or other family law matter has become more pressing.

One of the biggest challenges with crypto assets is the volatility of their value. Because the price of a cryptocurrency can fluctuate dramatically in a short period of time, it can be difficult to determine an accurate value for the asset. This can make it difficult to divide assets fairly in a divorce, as one party may feel they are not receiving their fair share due to the volatility of the crypto assets in question.

The Bank of England states in a March report last year that crypto asset technology grows in importance, risk could potentially arise from:

  • interlinkages between crypto assets and the traditional financial sector,
  • new forms of financial and operational risk for financial institutions,
  • a growth in activity outside of the existing regulatory perimeter, and
  • challenges new forms of entities and business models

Another issue that can arise with crypto assets is the lack of transparency. Cryptocurrency transactions are often conducted anonymously, which can make it difficult to trace the flow of funds and determine who owns what. This can be particularly problematic in the context of a divorce, as one party may try to hide assets or transfer them to an anonymous account in an attempt to avoid having to divide them.

Crypto Assets and Divorce

Despite these challenges, there are ways to effectively handle high inflation crypto assets in the context of a family law matter. One strategy is to hire a forensic accountant with experience in crypto asset tracing and valuation in your divorce. This expert can help determine the true value of the assets and trace their ownership, which can provide important information for the court to make a fair division of assets.

Another strategy is to use a neutral third-party to hold and manage the assets during the divorce proceedings. This can ensure that the assets are not transferred or hidden and that both parties have access to the assets during the proceedings. It also shows transparency and complies with disclosure obligations.

Overall, while the world of cryptocurrency can present unique challenges in the context of a family law matter, by understanding the implications of high inflation crypto assets and utilising expert assistance, practitioners can help ensure that these assets are handled fairly and transparently.

Note: The above article is not a legal advice or recommendation, it is for informative purpose only. It’s always best to consult our special family lawyers for proper legal guidance and a free initial consultation


Paradigm Family Law have a team of experienced and highly recommended divorce lawyers to help guide you through the process of divorce, just waiting to hear from you.

If you would like more details on this or want to discuss your family law matter, please do not hesitate to contact James, Frank, or Evelyn. Paradigm Family Law offers a free initial consultation with a top rated divorce lawyer and our fixed fee solutions cover financial proceedings from start to finish. You can call us on 01904 217225 or email us to [email protected].