Cryptocurrency is becoming a major challenge in divorce proceedings as more spouses attempt to hide assets in digital wallets, offshore crypto exchanges, or decentralized finance (DeFi) platforms. Unlike traditional bank accounts, cryptocurrency transactions can be pseudonymous, making it difficult to trace and value hidden holdings. Courts and family law practitioners are increasingly relying on forensic accountants and blockchain analysis tools to uncover undisclosed digital assets. Additionally, because cryptocurrencies are highly volatile, determining their fair market value for asset division is another complex issue, requiring judges to decide whether to use the valuation at the time of separation, settlement, or judgment.
To uncover the crypto assets, courts are enforcing stricter financial disclosure requirements, and some jurisdictions are allowing subpoenas to major crypto exchanges. However, decentralized platforms and self-custody wallets remain significant obstacles to full transparency. In response, attorneys are using digital forensic experts and court orders to compel spouses to disclose seed phrases, transaction histories, and exchange accounts. As cryptocurrencies become more mainstream, family law is evolving to address these hidden assets, ensuring a fair division of marital property while keeping pace with rapidly changing financial technologies.
Fei Du, Associate
For more on Ms. Du, please visit:
https://www.beermannlaw.com/team/fei-du/.
