Matrimonial Financial Remedy. Dividing Crypto Assets in Divorce Proceedings
‘Crypto Assets’ are a rapidly developing concern and one that HGW Family Team is very alert to because it is a type of asset which is now emerging more and more often in divorces.
Whether a financial asset is ‘bricks and mortar’, money in a bank account or less tangible such as an investment in a crypto asset, there is still the same requirement for full and frank financial disclosure. Only then can a full assessment be made of how those financial assets should be considered at the time of a divorce.
Sometimes it can be hard to establish whether a crypto asset even exists. If you suspect your spouse has invested in a crypto asset, the HGW Family team can help investigate and make sure that nothing is missed.
Crypto assets like bitcoin are often purchased with the use of a credit card. If necessary, a Family Court can order the disclosure of credit card statements, and from there we can track the money. However, other help might be required, such as instructing an expert ‘tracer’ with specialist software to identify asset location and value by source and destination.
This method is particularly useful if you suspect that those assets are substantial.
Once a crypto asset has been identified, further steps might be necessary to ‘freeze’ the asset to prevent it from being disposed of or moved by your spouse whilst your case is properly resolved.
Careful thought can then be given to how the existence of the crypto asset should be considered. This can include offsetting it against the value of other matrimonial assets, to ensure that there is the overall fair distribution of all assets. For this, ‘equal sharing’ is the starting point, but ‘need’ often dictates who gets what at the end of the day.
To discuss this or any other family issue, don’t hesitate to get in touch with the HGW Family Team.