Cryptocurrencies—such as Bitcoin, Ethereum, and others—have risen in prominence over recent years. With ever-fluctuating values, these digital assets can introduce a new layer of complexity when couples divorce. Below, we discuss the challenges, legal considerations, and best practices for dealing with cryptocurrency in a divorce settlement.
In January 2022, the Law Society highlighted that there are “almost as many definitions of a cryptocurrency as there are cryptocurrencies”. While there are many forms of digital currency, Bitcoin is the example most commonly encountered in family proceedings. Introduced in 2008, it has seen its value climb significantly over time; as of June 2022, 1 BTC was worth £17,124.
Cryptocurrencies themselves are a subset of digital assets, which can also include digital files, domain names, and more. By December 2021, more than 9,000 different cryptocurrencies existed, with a total market value exceeding £1.76 trillion, of which Bitcoin is just one prominent example.
Cryptocurrency values can fluctuate rapidly, sometimes dramatically within a single day. This volatility makes it difficult to establish an agreed valuation in divorce proceedings. Both parties and the court must rely on up-to-date information, often obtained from cryptocurrency exchanges or professional appraisals.
In divorce and other financial matters, each spouse has a duty to provide full and frank financial disclosure. However, cryptocurrencies can be difficult to locate and confirm, due to their relative anonymity and use of digital wallets. The public ledger (blockchain) does record transactions, but determining real ownership generally requires:
Unlike traditional currencies, cryptocurrencies:
Because of this decentralised framework and potential anonymity, cryptocurrencies require a particular approach when evaluating and disclosing assets in a divorce.
Cryptocurrencies are legally regarded as “property” in England and Wales. This means they can be subject to property adjustment orders under section 24 of the Matrimonial Causes Act 1973. In other words, they are assets that can be divided or transferred between parties in a financial settlement, just like any other form of property or investment.
Due to the rapid and sometimes extreme fluctuations in value, cryptocurrencies should be re-valued at each stage of negotiation or court hearing. Parties must be prepared to provide up-to-date exchange rates or statements from the relevant blockchain or trading platform.
When negotiating or litigating the division of cryptocurrencies, spouses can:
If negotiation or mediation does not yield a satisfactory agreement, the court can order the sale or transfer of cryptocurrency. They may:
At HM & Co. Solicitors, our family law team understands the complexities introduced by cryptocurrency in divorce and financial disputes. We work alongside specialists—such as digital forensic investigators and financial experts—to ensure all relevant assets are identified, accurately valued, and fairly divided.
HM & Co. Solicitors
186 Lower Road
Surrey Quays
London SE16 2UN
Telephone: 02071128180
Email: info@hmsolicitorsltd.com
If you need tailored help concerning cryptocurrency assets in your divorce, get in touch. We provide clear, informed support designed to safeguard your financial interests while navigating this emerging and complex asset class.
Divorce is the legal process of ending a marriage through a court application. Once granted, both individuals are no longer legally married. However, certain legal obligations—such as maintenance orders or child arrangement orders—may still apply after divorce.
There are four main stages in the divorce process:
Keep in mind that divorce itself does not settle financial matters or child arrangements. A separate financial settlement and any necessary child arrangements must be made.
In England and Wales, a no-fault divorce system is in place. You only need to state that your marriage has irretrievably broken down, without assigning blame.
A divorce application (Form D8) initiates the divorce process. You can apply on your own (sole applicant) or jointly with your spouse. If you receive an application, you become the respondent. Applications can be made online or by post, and a court fee of £593 applies at the time of writing.
To be eligible for a divorce or to dissolve a civil partnership, you must have been married or in the civil partnership for at least 12 months. If you haven’t reached this timeframe, you may be able to annul the marriage or seek a judicial separation.
If you separate without divorcing, you remain legally married and financially linked. Divorce-related financial claims remain open and can be dealt with later. Judicial separation is an option that allows you to remain married but legally separate. However, it is rarely used. Obtaining a divorce fully ends the marriage, although resolving financial matters requires a separate financial order.
The process for ending a same-sex marriage or civil partnership is the same as for opposite-sex marriages.
If you are in immediate danger, call 999. You can also seek protection from the family court, such as orders regulating who lives in the family home or preventing certain behaviours. Further information and support are available for individuals facing domestic abuse.
It is difficult to halt divorce proceedings. Disputes are limited and usually involve the validity of the marriage. Most often, the divorce will proceed even if one spouse does not cooperate.
If your spouse does not respond to the application within 14 days, you can arrange for the papers to be served in person by a court bailiff or process server. Once service is proven, you can proceed with the divorce, regardless of cooperation.
A conditional order confirms that the court sees no reason to prevent your divorce. Although an important milestone, it does not end the marriage. Both parties remain legally married until the final order is granted.
Six weeks after the conditional order, you can apply for the final order, which legally ends your marriage or civil partnership. Keep the final order safe for future use, such as if you remarry or revert to your maiden name. It’s generally advisable to finalize financial arrangements before applying for the final order.
On average, a divorce in England and Wales takes about six to eight months. There are waiting periods built into the process:
The court fee for processing a divorce application is currently £593. Additional costs vary depending on complexity, legal representation, and whether financial or child arrangements are contested. Fixed-fee divorce options may be available. Handling the divorce yourself online avoids solicitor fees for the divorce process itself, but legal advice on finances is strongly recommended.
Legal aid for family law matters is limited and generally available only in cases involving domestic abuse, child welfare, or social services. We do not offer legal aid; check the government’s legal aid website for approved providers.
Typically, each person covers their own legal costs. The applicant pays the court fee. In a joint application, applicant 1 usually pays the fee. You can ask the court to order that costs be shared, but such orders are rare. Costs related to the divorce itself are separate from those incurred when resolving finances and/or child arrangements.
You can file the divorce application yourself. However, it’s strongly advised to seek legal advice on financial settlements. A solicitor ensures that your financial arrangements are fair and legally binding.
No. Using the same solicitor would create a conflict of interest. Both parties should seek independent legal advice.
Not at all. Many solicitors are members of Resolution, a group committed to resolving family issues without conflict. Specialist lawyers aim to reduce hostility, not increase it.
For the divorce process itself, you usually won’t need to attend court if both parties cooperate. If financial or child arrangements are agreed amicably, these can be formalized without a hearing. However, if no agreement is reached, you may need to attend court hearings.
You can change your name at any time by simply starting to use a new one. However, a deed poll or similar document is often required to update official records. You cannot change your children’s names without the other parent’s consent.
English law assesses capacity based on the specific decision at hand. If a spouse cannot understand and consider information related to financial settlements or divorce decisions, a doctor may be needed to assess their capacity. If they lack capacity, a ‘litigation friend’ can be appointed to make decisions in their best interests.
Yes. Judicial separation, annulment, and separation agreements are possible alternatives. These options might suit those not ready for a full divorce.
Collaborative divorce involves both parties and their solicitors committing to resolving issues without going to court. This process encourages open communication, reduces conflict, and allows couples to maintain control over decisions, particularly when children are involved.
Mediation involves meeting with a neutral mediator to reach agreements on finances and child arrangements. It can be faster, cheaper, and less stressful than court. While the mediator does not provide legal advice, you can seek independent legal guidance alongside mediation. Agreements reached can be made legally binding with the help of a solicitor.
Arbitration is a form of dispute resolution where a neutral arbitrator acts like a judge, reviewing evidence and issuing a binding decision. Benefits include flexibility, confidentiality, and potentially lower costs compared to court. However, both parties must agree to arbitration, and fees for the arbitrator apply.
Book Appointment Forensic Accountants for Divorce Expert Support for Complex Finances Going through a divorce can be daunting—especially when finances and assets are complicated. If you suspect your ex-spouse is…
Book Appointment Divorce Financial Settlement Solicitors Why Is a Good Financial Settlement So Important? When separating from your spouse, ensuring a fair financial settlement is essential for securing your future…
Book Appointment Financial Solicitors in Family Law Why Seek a Specialist Financial Solicitor? Family-related financial matters can be complex and stressful. Whether you’re concerned about asset division, property valuations, or…
Book Appointment Prenuptial Agreement Solicitors Why Consider a Prenuptial Agreement? Once seen as only for the super-wealthy or popularised by the US, prenuptial agreements (“prenups”) are becoming increasingly common in…
Book Appointment Postnuptial Agreements Solicitors What is a Postnuptial Agreement? A postnuptial agreement—or postnup—is a document created by couples after they have already married or entered a civil partnership. Much…