eprivateclient features an article by Matt Foster and Sarah Moore on untangling crypto assets in divorce

Cryptocurrency is now a well‑established part of the investment landscape and is increasingly coming under scrutiny in divorce proceedings. The pressures of litigation bring into sharp focus some of its most challenging features, particularly its decentralised structure and exposure to significant market volatility.

Digital assets can be exceptionally difficult to identify, trace and enforce against, presenting considerable challenges for professionals tasked with securing assets. Although family lawyers are experienced in uncovering hidden wealth, cryptocurrency poses distinct difficulties, as blockchain technology does not generate the same digital paper trail as more traditional asset classes.

As a result, locating undisclosed cryptocurrency can be both costly and complex, with no guarantee of success. Rapid and often unpredictable fluctuations in value can further complicate matters during divorce proceedings, creating a moving target for settlement discussions or even undermining agreements that have already been reached. In some cases, sharp changes in value can also exacerbate disputes around non‑disclosure or the notional ‘adding back’ of recklessly dissipated assets, including significant losses.

Matt Foster, Senior Associate in our Family team, and Sarah Moore, Senior Associate in our Private Wealth Disputes team, explore these challenges in eprivateclient:

Cryptocurrency is no longer a peripheral consideration in divorce proceedings. It is an increasingly prominent asset class that exposes the limits of traditional disclosure, tracing and enforcement tools. As digital assets become more embedded in personal wealth, a combination of legal and technical expertise will become essential.

Read the full article in eprivateclient here.