Cryptocurrency is no longer an outlier in financial remedy proceedings. Increasingly, digital assets form part of high-net-worth divorce settlements, yet the law and disclosure processes have not kept pace with the complexities these cases present.
For family lawyers, this creates a growing need to balance client expectations with practical limitations, while developing strategies to manage disputes involving digital wealth. The key takeaway is not for family lawyers to become tech experts, but to understand the fundamentals of dealing with cryptocurrency in divorce, just as they would with more familiar assets like property, businesses or savings.
Crypto and concealed wealth in divorce
Over the past ten years, cryptocurrency has become a recurring feature in high-value cases, but it remains an area fraught with uncertainty. The decentralised and privacy-focused nature of digital assets makes them inherently harder to locate, identify, and value compared to traditional assets.
We are increasingly seeing scenarios where clients suspect their former spouse of concealing assets through cryptocurrency, whether by moving funds offshore, using privacy-focused tokens, or converting assets long before proceedings begin. While the existence of digital wealth may be suspected, proving ownership and tracing its movement can be significantly more challenging than with conventional financial products.
Disclosure gaps and legal grey areas
The current disclosure framework exacerbates these challenges. Form E, the cornerstone of financial disclosure, contains no dedicated section for digital assets. Without explicit prompts, some parties omit cryptocurrency holdings entirely, sometimes through misunderstanding, but often intentionally.
A recent landmark case, Culligan v Culligan [2025] EWFC 1, highlights the growing significance of cryptocurrency in high-value divorce cases. The court dealt with a £20 million Bitcoin fortune, originally purchased for £10,000, alongside undeclared crypto holdings of £371,000 which were revealed mid-proceedings (which was found by the judge to have constituted litigation misconduct). Naturally, this illustrates that undisclosed crypto can have significant legal and financial consequences, reinforcing why family lawyers must be proactive in uncovering and addressing digital assets during disclosure.
Additionally, while the courts expect full and frank disclosure, the practical reality is that identifying undeclared assets can be complex and labour intensive. Even when disclosure is made, any lack of knowledge or familiarity with digital wealth can create uncertainty for practitioners advising clients and negotiating settlements.
Tracing, valuation and enforcement challenges
When digital assets are disclosed and records are available, tracing them through exchange statements is relatively straightforward. However, the situation becomes far more challenging when assets have been moved across multiple platforms or stored beyond the reach of disclosure orders. While case law on specific treatment by the court in family law cases is still emerging, the courts already recognise digital assets as property and routinely grant freezing and disclosure orders in crypto disputes.
Valuation adds another layer of difficulty. The volatility of cryptocurrency markets can lead to significant fluctuations in asset values during proceedings. In some cases, we have seen values fluctuate by as much as 30% between the time of preparing a schedule of assets ahead of a hearing, to the day of a hearing itself. This can have huge implications for settlement proposals and offers. Helpfully, the courts have become mindful of this and in some cases have been known to fix a valuation date, use averaged pricing, or making adjustments via lump-sums to take into account these fluctuations.
International elements complicate matters further. Where assets are held on overseas exchanges or in jurisdictions that do not cooperate with the courts in England and Wales, obtaining transaction records or enforcing financial orders can be extremely challenging. Whilst our courts do obtain disclosure orders against major exchanges (e.g. Binance), compliance, or speed of compliance, with such orders varies greatly.
The role of forensic specialists
Given these difficulties, we are seeing greater reliance on forensic investigators and digital asset specialists. These experts play a valuable role in identifying undeclared holdings, analysing blockchain activity, and providing evidence to the court, often on a single joint expert basis.
However, even with specialist support, there are limitations. Where digital wealth has been deliberately concealed or secured in ways that prevent access, tracing may ultimately reach a dead end. Managing client expectations around these limitations is just as important as pursuing investigative avenues.
The need for legal reform
The status of cryptocurrency and other digital assets in English law is in the process of being clarified by Parliament. Following the Law Commission’s 2023 report, the proposed Property (Digital Assets etc) Bill will formally recognise crypto as a distinct form of property. This means digital assets can be disclosed, valued, and enforced in divorce proceedings just like any other asset.
If enacted, the legislation will provide a more settled framework, and may prompt updates to standard disclosure forms such as Form E, ensuring cryptocurrency and other digital assets are properly identified and consistently dealt with in financial remedy proceedings.
Cryptocurrency is no longer an emerging issue in family law, it is an established challenge that requires specialist knowledge, strategic thinking, and adaptability. While the legal framework is in the process of catching up, practitioners can mitigate risk by asking the right questions early, recognising potential red flags, and engaging appropriate expertise when needed.
Robert Webster is a senior associate solicitor at Maguire Family Law
