It is now clear that crypto-assets are not simple a passing fad, and that they are here to stay. According to research by YouGov in 2025, it is estimated that 8% of the UK adult population own crypto assets. At Johnson Astills, we are alive to the fact that you or your partner may have significant investment in a particular cryptocurrency, and it is important to consider how crypto assets are treated in a divorce.
How are Crypto assets considered?
In short, crypto assets are treated no differently than any other property. The Court can make an order that crypto assets be transferred or sold for a fiat currency (such as pounds, dollars or euros etc). The Court can also put into effect an injunction to prevent a party from disposing of their crypto assets.
How are crypto assets investigated in financial remedy proceedings?
As with any other asset you may have, crypto assets should be disclosed in an exchange of financial Form E’s. The form should state what the asset is, and if it is a currency, how much of it is held. For example, 10 Ethereum or 100 Ripple. This should likely be accompanied by documentary confirmation of the amount and location of the currency in question.
Difficulty can come when investigating whether someone is telling the truth about the assets they are saying they have, or not saying they have as may be. All crypto wallets are pseudonymous, meaning that they do not have names attached to them. However, all wallets have unique identifiers, and all transactions are added to an amend only database, meaning that any transactions involving a wallet can be tracked. It may be that forensic investigators need to be involved to follow those transactions to reveal undisclosed wallets.
Valuation of crypto assets for division
If crypto assets are to be considered in a divorce settlement, the assets need to be given an appropriate valuation in pounds to allow for a fair comparison. The difficulty that this poses is that the crypto market is notoriously volatile, fluctuating in value daily. It may be that several valuations of crypto assets are required during proceeding, with valuations sometimes being required on the day of any hearing to make sure it is up to date.
It must also be considered that the sale of a crypto asset may incur a Capital Gains Tax liability, and that there may be exchange fees to be paid for crypto assets to be turned into a fiat currency.
There are many considerations that need to be covered when crypto assets are held by a divorcing party. Our expert solicitors at Johnson Astills are capable of assisting you in negotiating these challenges.
Please call us at our office in Leicester on 0116 255 4855 or our office in Loughborough on 01509 610 312 and ask to speak to a member of the Family Team. Alternatively, you may prefer to email us at legal@johnsonastills.com or complete our enquiry form.
