Increasing number of divorce proceedings involve crypto

Most crypto investors probably aren’t thinking about divorce or what will happen to their digital assets in the event of separation, but lawyers say it’s becoming a very common scenario as more people hold crypto assets. 

Last year, market research firm GWI

However, if there is no pre-nup, then factors such as the length of the marriage, financial and non-financial contributions throughout the marriage, and whether one party will become the primary or substantial carer of any children are relevant factors in splitting the asset pool.

“Often, the party not involved in crypto tokens does not wish to receive any share of crypto tokens but rather the fiat currency amount invested, or their share of profits on the sale of the crypto tokens paid to them in fiat currency,” Pirovich said.

Ultimately, to avoid any issues down the track, she advises honest and open discussions with a partner about finances on a regular basis.

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“There can be emotional reasons why a person seeks to maintain a level of financial independence from the marriage and assets treated as jointly owned by the couple. This tends to come up for people reentering marriage after a first divorce,” Pirovich said.

“At least annual discussions should be had about crypto and the couple’s financial position as part of annual tax return filing obligations, and at least every three years when the couple considers their wills and estate planning documents and revisions required,” she added.