Treatment of Crypto-assets on Divorce

In the ever evolving technological landscape of the 21^st century, family solicitors have seen an increase in clients holding cryptocurrency and querying what, if any, claim their spouse might have to this on divorce.

Cryptocurrency is a virtual or digital currency that can be used as money in exchange for goods and services or retained as a form of investment. A cryptocurrency “coin” or “token” has no physical form. The first type of Cryptocurrency, and possibly the most well-known – Bitcoin - was created in 2009 on the heels of economic recession. Other cryptocurrencies include Ethereum, tether and BNB.  Given the non-tangible nature of cryptocurrency, many are left thinking that their spouse could not possibly have a claim. 

However, in Scotland, cryptocurrency is treated like any other asset on divorce. If a spouse has invested in crypto during the period of the marriage and still holds on to the crypto at the point parties separate, then that is a matrimonial asset for the purposes of divorce.

Cryptocurrency is often a favourable currency to individuals seeking to hide money or assets. For some, they may not have advised their spouse that they hold Bitcoin or other crypto-assets. If you think your spouse may hold crypto-assets and they have not disclosed this, bank statements can be examined for non-descript transactions or large cash withdrawals, and questions can be posed to them or the agent acting on their behalf, requesting that they explain these. Forensic accounting experts can be utilised to look into this, and of course the courts take a poor view of anyone seen to be attempting to conceal assets.

If you are seeking advice in respect of divorce and matrimonial assets, please contact one of our experienced Family Law Team on 0141 429 8166.