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On a divorce there is a duty to provide full financial disclosure to your estranged spouse. Sadly, sometimes a party can attempt to hide assets from their respective spouses and cryptocurrencies have made this easier to achieve.
When dividing finances and assets people think about the ‘visible’ assets, such as properties, bank accounts, pensions, jewellery, cars and debt. However, don’t consider or may even know about the ‘invisible’ assets, in the form of cryptocurrencies.
There has been a rapid rise in the popularity of cryptocurrency, in particular Bitcoin since its creation in 2009. It has generated vast wealth and consequently digital currencies have become a more frequent and significant feature in modern day divorces.
Cryptocurrency is a digital currency. If cryptocurrency is used to purchase or pay for something, this transaction is recorded in a decentralised system and distributed into a network. Cryptocurrency uses distributed ledger technology (DLT), that keeps this data secure and means there is no single central data storage point or central authority to grant permission for users to access, for example the Bank of England are the central authority for banking.
As of February 2026, cryptocurrency remains unregulated in the UK; however, this is evolving.
As of February 2026, there are over 20,000 types of cryptocurrencies. The most popular ones being: -
There are also non-fungible tokens (NFTs) which are not a cryptocurrency but use a similar blockchain technology. NFTs represent ownership of digital or physical assets, mostly art or collectables.
Cryptocurrency will be recognised as property under the Matrimonial Causes Act 1973. Dividing cryptocurrency works similarly to dividing any other matrimonial asset. The added complication with cryptocurrency is because it can be harder to trace, value, and distribute. There are therefore some extra measures necessary.
When determining how to divide cryptocurrency, this is what will be considered:
As cryptocurrency is recognised as property, once identified, and valued, it should be included in the overall ‘pot’ and divided as with any other matrimonial assets. Their value can fluctuate daily as they are a digital currency, and this can make achieving a fair settlement more difficult. A court however is able to order that cryptocurrency be transferred in whole or in part between spouses, (unless it has been directed or agreed they are to be kept separate from the joint finances.
You cannot share an NFT, but their value can still be included within the division of assets, or it can be sold.
There are usually tax implications for disposing of cryptocurrencies, and this need be considered within the division of assets.
As cryptocurrency is digital, it is easier to hide. If you are starting a divorce and you suspect that your ex-spouse is hiding digital assets, you can seek a Disclosure Order from the court which is a legal command that forces someone to provide relevant information as part of proceedings.
If the other party fails to fully disclose digital assets, you should seek legal advice on whether to instruct a specialist forensic accountant to examine their bank accounts. It is possible for searches can also be conducted through hot or cold wallets, where cryptocurrency is stored. Hot wallets e.g., MetaMask, Exodus are connected to the internet and are best for active trading and smaller amounts due to their convenience. Cold wallets are offline devices, (e.g., Ledger, Trezor) which offer maximum security for long-term, high-value storage by keeping private keys offline. It is important to ensure all possible locations have been considered or investigated
If you also apply to freeze via injunctive relief the use of cryptocurrency if this has been disclosed by the other party and they are dissipating those assets.
It is rare to reach the point in proceedings where specialist forensic accountants are needed. This does however highlight the importance of both parties being transparent and honest about their finances and the value of having an experienced lawyer at your side. Contact us today on 0161 696 6193 to speak with our specialist solicitors.
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