DIVORCE AND CRYPTOCURRENCY

Hi Steem Lovers,

What can someone do if they are embroiled in divorce proceedings and think their spouse is hiding cryptocurrency assets?

It is imperative to take specialist legal advice straight away so that steps can be taken to seek orders from the court as to disclosure of the cryptocurrency.

If disclosure is not forthcoming and the tracing exercise through bank statements (if disclosed) does not show the purchase transaction, a digital forensics expert can be appointed who will trawl through the spouse’s computers and devices in an attempt to find the purchase transaction and wallet where the cryptocurrency is held.

Freezing injunctions can be obtained on all assets if there is a concern about the cryptocurrency being hidden and/or disposed of.

Administering a freezing injunction on cryptocurrency however is impossible because of the element of decentralisation.

After a divorce, can a former spouse still start court proceedings to try and dig out cryptocurrency assets from their ex-spouse?

This can only happen in limited circumstances where a final order in full and final satisfaction of a person’s claims has already been dismissed for example, where the cryptocurrency had been hidden but then evidence of it’s existence came to light later on.

If no final financial order had been made but decree absolute which is the final divorce certificate had been granted, then it is possible to make financial claims later on