Cryptocurrency, NFTs and other digital assets are no longer the preserve of early adopters and tech specialists. With a growing proportion of individuals now holding some form of crypto—whether as a speculative investment or as part of a broader portfolio—these assets are increasingly finding their way into financial remedy proceedings on divorce.

As with many “new” asset classes, however, the law has had to catch up quickly. The overarching principles remain familiar, but the practical realities are anything but.

Just another asset… or is it?

From a legal perspective, cryptoassets are treated in the same way as any other form of property. They must be disclosed, they fall within the potential matrimonial pot, and they are subject to the court’s broad discretion when determining a fair outcome.

But that is where the simplicity ends.

Unlike traditional assets, cryptocurrency is often held outside conventional systems—across exchanges, digital wallets or even offline devices. This can make identifying, evidencing and, in some cases, even understanding ownership more complex than it first appears.

Disclosure: the first hurdle

As with all financial remedy cases, full and frank disclosure is key. Crypto is no exception.

In practice, that means more than simply saying “I hold Bitcoin”. Proper disclosure should include:

• details of exchanges and wallets
• transaction histories
• the nature and quantity of assets held
• any associated activity (such as staking or token rewards)

Given the technical nature of these assets, this is often an area where the quality—and completeness—of disclosure can become a point of tension between parties.

Valuation: an inherently moving target

Perhaps the biggest challenge is valuation.

Unlike property or pensions, cryptoassets are inherently volatile. Their value can fluctuate dramatically in a short space of time, which raises a very practical question: what is the right value to use?

There is no single answer. Possible approaches include:

• using a fixed valuation date
• taking the value at the final hearing
• averaging values over a period
• or offsetting the crypto against other assets altogether The “right” approach will depend on the circumstances—but what is clear is that a static valuation exercise does not always produce a fair outcome

Division: balancing risk as well as value

Once valued, crypto must be divided—and here, too, there is more than one route.

Options include:

• transferring crypto directly between parties
• selling and dividing the proceeds
• offsetting its value against other assets, such as property or pensions

What is increasingly apparent is that the court’s focus is not just on dividing value, but also on allocating risk fairly. Given the volatility of crypto, this can be a critical consideration.

The “hidden asset” concern

Crypto also brings with it a degree of suspicion in some cases.

While transactions are recorded on a public blockchain, ownership itself can be harder to attribute. Wallets do not automatically identify the individual behind them, which can make investigation more involved—particularly if there are concerns around non-disclosure.

In appropriate cases, forensic input may be required to trace transactions and establish the true extent of holdings.

A need for early, joined-up advice

If there is one consistent theme, it is this: cryptoassets require early and informed advice.

Handled properly, they can be addressed pragmatically within the existing framework of financial remedy law. Handled poorly—or left too late—they have the potential to distort the overall settlement and create avoidable risk.

For clients, the message is reassuring: the principles remain familiar.

For advisers, the challenge is ensuring that those principles are applied in a way that reflects the realities of a modern, digital asset class—one that is here to stay.

Speak to our family law specialists

If you are dealing with cryptocurrency as part of a divorce or financial remedy case, expert legal advice is essential.

Our family law team has experience advising on complex and high-value asset cases, including cryptoassets and digital investments. We can help ensure that your financial settlement reflects both value and risk fairly.

Contact us today to discuss your situation in confidence.

Frequently asked questions

Is cryptocurrency included in a divorce settlement in the UK?

Yes. Cryptoassets are treated as property and are usually considered within the financial settlement, depending on the circumstances.

Do I have to disclose Bitcoin in divorce proceedings?

Yes. Full disclosure applies to all assets, including cryptocurrency.

How do courts value crypto in divorce?

Courts may adopt different approaches depending on volatility, including fixed dates or averaging values.

Can my spouse hide cryptocurrency?

While crypto can be harder to trace, forensic techniques and disclosure obligations make concealment increasingly difficult.

About the author

Estella Newbold-Brown is Partner and Head of Family, advising high-net-worth clients on complex financial settlements and children matters.

Estella is a highly regarded family law specialist, advising high-net-worth individuals on complex financial and children-related matters. She acts in cases involving significant wealth, family businesses, international assets, and offshore structures, and is known for her strategic, pragmatic, and empathetic approach. She is recognised for her meticulous organisation, clear communication and forward-thinking style, ensuring clients feel supported throughout every stage of their case.