Cryptocurrency is an asset to be considered in a divorce financial settlement. As a common practice in divorce, all assets (including crypto and NFTs) must be disclosed in a divorce financial settlement on form E. Both parties are required to fill this out with full transparency of their financial assets.
According to recent research by the Financial Conduct Authority, there are estimated to be 2.3 million people in the UK who hold cryptocurrency.
The UK’s Leading Divorce and Financial Settlement Firm, Fair Result, tell us exactly what to do and what evidence you need to supply if you suspect your ex-spouse is hiding crypto assets.
We see a lot of cases where a spouse with crypto assets tries to hide them from the court. Even if someone suspects their ex-spouse is hiding these sorts of assets, it can be very hard to prove. With cryptocurrency, there is never a paper trail, there will be an encrypted blockchain with transaction records but no names.
If you suspect crypto assets are being hidden, you should speak with your solicitor and try and work out exactly how much is being hidden. Try remembering anything your ex-spouse has ever mentioned about investing in cryptocurrency during your marriage and whether you can access any proof of this.
Types of evidence to look for:
- A bank statement with the initial investments into crypto assets.
- Using bank accounts and crypto platforms to show any recent purchases with cryptocurrency or conversions from crypto into “real” currency.
- Instances where your ex-spouse has made purchases without a clear explanation.
- Simply asking “where did you get the money for X” can be more beneficial than you may think.
These can all be good starting points in convincing the court to issue an order to further disclose financial assets. If unsuccessful, you can ask the court for a formal order to your ex-spouse, this asks for a formal answer to questions e.g., Has he/she owned any crypto assets before and can bank statements be provided during the suspected time of invested crypto assets?
So, if your ex-spouse is hiding their crypto assets, make sure to enquire about legal advice and approach the search for evidence in the most appropriate way.
Find out more about how cryptocurrency can become problematic during the divorce process here.
This article was submitted to be published by Fair Result as part of their advertising agreement with Today’s Family Lawyer. The views expressed in this article are those of the submitter and not those of Today’s Family Lawyer.
