In a divorce, an estate or an insolvency, it has to be established which assets existed on a given date. For crypto that is harder than for a bank account: there is no institution that issues a complete statement, holdings can be spread across several wallets and platforms, and the value moves by the day. Paucitas maps those assets independently and factually, values them on a fixed reference date and records the substantiation in a traceable way, so that the lawyer, civil-law notary or insolvency practitioner can work with it. Paucitas takes no position on the division.
On this page
- Why does crypto require separate attention in a legal matter?
- What is a reference date and how is the value on it determined?
- How are crypto holdings mapped in a divorce?
- What if there is a suspicion that part is being kept outside the estate?
- What comes up in an estate or a gift?
- What does this mean for an insolvency practitioner?
- What if nobody can access the wallet any more?
- When does Paucitas act as an expert in proceedings?
- When is a counter-expertise on an existing report called for?
- What is in the report, and how long does it take?
- How does the investigation proceed, step by step?
- Who does what: lawyer, notary, insolvency practitioner and investigator?
- What can this investigation not do?
- Frequently asked questions
Why does crypto require separate attention in a legal matter?
A bank supplies a balance statement per date on request. For crypto no such party exists. Holdings can sit in a self-custodied wallet nobody else can reach, be spread across several platforms, or be locked into products whose value cannot be expressed in a single figure. Anyone relying on one screenshot from an app is relying on a snapshot that cannot be checked.
On top of that, digital holdings are easier to keep out of sight than an account with a Dutch bank. That is not an accusation and not an assumption about the people involved; it is a reason not to leave the determination to one of the parties. An independent inventory prevents the discussion about the division from being conducted on figures supplied by one side.
Further reading: wallet, exchange and stablecoin.
What is a reference date and how is the value on it determined?
A reference date is the date on which the assets are established. Which date that is follows from the case file and is set by the lawyer, the notary or the judge, not by the investigator. Paucitas works with the date given and records which date and which moment were used.
The valuation is then made per position: which tokens, in what quantity, at which address or with which platform, and at what price at that moment. For every price the source used is stated, so that the opposing party can redo the same calculation. Where a position is not traded on a liquid market and there is therefore no reliable price, that is stated as a reservation in the report instead of a figure being entered.
See also: token and asset verification.
How are crypto holdings mapped in a divorce?
The investigation starts from what has been supplied: exports from the platforms where an account exists, addresses of self-custodied wallets, bank statements showing deposits to and from an exchange, and the tax returns in which crypto holdings were declared. Those documents are placed side by side to see whether the picture adds up.
The blockchain itself is then used to check the addresses given and to see whether there are movements that do not appear in the records supplied. The result is an overview per position with the value on the reference date, plus a chronological overview of the movements in the period relevant to the case.
Further reading: the blog crypto in a divorce: mapping and dividing assets and the topic proving the origin of assets.
What if there is a suspicion that part is being kept outside the estate?
A suspicion is not a determination, and the investigation does not treat it as one. What does happen is that it is checked whether there are indications lying outside the records supplied. Recurring starting points are transfers from a joint or private account to an exchange, including small and scattered ones, the purchase of a hardware wallet, subscriptions to trading platforms, and crypto holdings that appeared in an earlier tax return and later drop out of sight.
Each of those points is a reason to look further, not a conclusion. The report describes what was observed and what does and does not follow from it. Whether something has been concealed is a legal question and is for the judge, not for the investigator.
See also: hardware wallet and the blog mapping out crypto assets.
What comes up in an estate or a gift?
In an estate, three questions run together: does the holding exist, is there still access, and what was it worth at the moment of death. For that, heirs and the notary need an overview based on documents and not on what someone remembers. Origin can come up as well, for instance where the question is whether a holding already existed before a particular date.
With a gift the picture is comparable: which position was transferred, at which moment, and what value did it have then. Here too Paucitas records only the factual side. The tax and civil-law consequences are for the notary or the tax adviser.
Further reading: the blogs crypto in an estate and gifting or inheriting crypto: origin and valuation.
What does this mean for an insolvency practitioner?
An insolvency practitioner has to establish what belongs to the estate and whether assets flowed away in the period before the insolvency. Crypto often falls outside the records that are found. The investigation then focuses on whether accounts or addresses existed, which movements took place on them and whether anything was received in return.
The outcome is a chronological overview with a reference to the underlying transaction at every step, so that the practitioner can use that information in reporting and, where necessary, in proceedings. Whether a particular transfer can be challenged is a legal assessment and is not in the report.
See also the blog crypto in an insolvency: tracing and mapping assets.
What if nobody can access the wallet any more?
The absence of access is not the same as the absence of assets. What sits at an address, and what came in and went out, remains visible on the blockchain even if the keys are gone. For a division of assets or an estate that means the position can be established and valued, even if nobody can reach it at that moment.
Paucitas never asks of its own accord for your recovery phrase or private key. If you need help reading out or restoring your wallet, we will guide you through it completely, without needing to see that data ourselves.
Where access has been lost, it is examined whether recovery is technically possible, only on a wallet you lawfully own. Whether that succeeds depends on the data still available: a partial or complete recovery phrase, a file, a note or another starting point. We assess your situation without obligation and are honest about what is realistic in your case, without guaranteeing anything. If you are unsure whether what you still have is usable, do get in touch.
The report states expressly to what extent access still exists, because that determines which next steps are realistic and how the position can be taken into account in the division.
See also: private key and seed phrase.
When does Paucitas act as an expert in proceedings?
That happens in two ways. On the instructions of one party, in which case the report is submitted as a party expert report and the other side can dispute it. Or at the joint request of both parties, or at the request of the court, in which case the assignment and the questions are set out in advance. In both cases the content stays the same: factual observations with the substantiation alongside.
Where necessary the report is explained orally at a hearing or in a discussion with the lawyers involved. That an investigator can name the limitations of the work weighs more heavily there than a confident conclusion. How that role is set up in detail is described on expert report for court.
See also: expert witness, independent expert and the blog what a crypto expert does in a court case.
When is a counter-expertise on an existing report called for?
Where a valuation or an investigation already exists and the outcome is disputed. The counter-expertise then assesses not whether the conclusion is convenient, but whether the report supports its own conclusion: has the reference date been used consistently, is the price source stated, are the addresses used traceable, and are the limitations named? Where those elements are missing, that in itself is a finding.
A second opinion is lighter and usually serves to determine, before proceedings begin, whether a case file is strong enough. Both forms are set out on counter-expertise and second opinion.
Further reading: counter-expertise, evidential value and the blog counter-expertise in a crypto dispute.
What is in the report, and how long does it take?
A Paucitas report follows a fixed structure. Not every report contains every part, the scope varies with the case file, and the layout is tailored to the purpose of the report.
- Background and description of the assignment
- Questions to be answered
- Scope of the investigation
- Assumptions
- Data supplied
- Sources consulted
- Method in outline
- Verification and quality assurance
- Reservations and limitations
- Findings per element
- Chronological overview
- Analysis and coherence
- Conclusion
- Declaration of independence
- Appendices
Part fourteen, the declaration of independence, is what it comes down to in a division of assets. As soon as one party has had the report drawn up, the first question from the other side is whether the investigator has an interest in the outcome. Paucitas does not work on the instructions of an exchange, a software vendor or a platform, has no interest in the division and never works for a fee that depends on the outcome. Part four, the assumptions, additionally records which reference date and which price source were used.
Turnaround time. Depending on the size of the case file and the urgency, a Paucitas investigation takes between one working day and two weeks. An urgent report can be delivered within one working day and, in exceptional cases, the same day. A standard investigation is usually ready within three working days. For case files with many transactions, several wallets or missing history, the turnaround time rises to around two weeks. A surcharge applies to urgent assignments.
Costs. Paucitas works on a fixed fee based on your situation. Sometimes an hourly rate is agreed instead, but the hours are always fixed in advance, so you are never faced with surprises. No investigation is started before the costs have been discussed and agreed.
See also: crypto investigation report and expert report.
How does the investigation proceed, step by step?
Data can be supplied digitally or at our office. For each case you receive a list setting out which data is needed. Where necessary, Paucitas guides you through collecting and supplying it.
- Intake with the lawyer, notary or insolvency practitioner. The questions and the reference date are set out.
- List of data required. You receive an overview of the exports, addresses, statements and tax returns needed.
- Inventory. All known positions are mapped per platform and per wallet.
- Check on the blockchain. The addresses given are checked and movements outside the records are recorded.
- Valuation on the reference date, per position, stating the price source used.
- Verification. Findings are checked against a second source or method before they go into the report.
- Report. Delivery according to the fixed structure, with the reservations stated explicitly.
- Explanation and follow-up. Where the case calls for it, the report is explained to your lawyer, accountant, civil-law notary, the court or the authority handling the matter. If new data becomes available later, the report can be supplemented. What is appropriate here depends on the type of investigation and the arrangements made.
Further reading: the blog frequently asked questions about legal crypto matters.
Who does what: lawyer, notary, insolvency practitioner and investigator?
The lawyer sets the legal strategy and the questions. The civil-law notary handles the deed and the tax settlement in an estate or a gift. The insolvency practitioner administers the estate. The investigator establishes what is factually there and records it in a traceable way. That separation is not meant formally: it determines how much weight a report carries.
In practice it means that Paucitas gives no advice on the division, takes no position on who is entitled to what, and draws no tax conclusions. Where a question about that arises in the case file, it is passed on to the adviser involved. Tax topics such as the box 3 declaration are dealt with on the page about the origin of assets, not here.
See also: civil proceedings, origin of assets and the blog acting as an independent expert.
What can this investigation not do?
This section is deliberately complete. What an investigation cannot do determines the value of what it can.
- Paucitas does not independently establish who is behind a crypto address. What is recorded is which service provider or party the funds went to, so that the information can be followed up through the proper channels.
- Paucitas holds no funds itself and carries out no transactions on behalf of clients. In every case it is first established whether the platform holding the funds exists and whether access credentials are available.
- The emphasis is on investigation and substantiation. The report states explicitly to what extent access to the wallet concerned still exists, because that determines what can factually be established.
- Paucitas makes no commitment about the outcome of an investigation. The finding that a position cannot be traced any further is also a result.
- A Paucitas report confines itself to factual observations and the investigation of them.
- Transactions that took place off-chain, such as cash payments or internal bookings within an exchange, are not visible in blockchain data. They are only included where underlying documents are available.
- Where mixers or privacy-focused networks are used, the chain cannot always be followed in full. In that case the report states explicitly up to which point the route can be established.
- Paucitas gives no tax or legal advice.
Frequently asked questions
Which party establishes the value of crypto holdings in a divorce?
There is no institution that issues it. In practice one of the parties or the court has it established by an independent investigator. Paucitas values per position on the reference date given and states the price source used, so that the calculation can be checked.
Who sets the reference date?
The lawyer, the notary or the judge, depending on the case file. Paucitas works with the date given and records which date and which moment were used.
Can a report be used if the parties do not agree on the assignment?
Yes, as a party expert report on the instructions of one party. The other side can dispute it. A joint assignment or an assignment from the court usually gives a report more weight.
What if my former partner refuses to supply data?
Then the work is done with what is available: bank statements showing deposits to an exchange, earlier tax returns and the addresses that are known. The report states expressly which data is missing and what cannot be established as a result. Compelling cooperation is a legal route and runs through your lawyer.
Can Paucitas help if access to a wallet has been lost?
Where access has been lost, it is examined whether recovery is technically possible, only on a wallet you lawfully own. Whether that succeeds depends on the data still available: a partial or complete recovery phrase, a file, a note or another starting point. We assess your situation without obligation and are honest about what is realistic in your case, without guaranteeing anything. If you are unsure whether what you still have is usable, do get in touch. What sits at an address and what has moved on it can be established and valued even without access.
Does Paucitas make statements about who is entitled to what?
No. The report confines itself to factual observations and the investigation of them. The division and the legal interpretation are for the lawyer, the notary or the judge.
How long does this investigation take?
Between one working day and around two weeks, depending on the size of the case file and the urgency. A standard investigation is usually ready within three working days. A surcharge applies to urgent assignments.
How quickly does Paucitas respond to a question?
Paucitas usually responds within a few minutes to an hour, and in almost all cases the same working day.
Which pages belong to this topic?
Terms
- Asset verification — establishing a position on a date.
- Origin of assets — where a holding comes from.
- Expert report — the form submitted in proceedings.
- Expert witness — the role at a hearing.
- Independent expert — why the investigator’s position counts.
- Counter-expertise — the assessment of an existing report.
- Civil proceedings — the context in which the report is used.
- Evidential value — why traceability weighs more heavily than the conclusion.
- Seed phrase — why access and ownership are two different questions.
- The full glossary — including the hardware wallet and the crypto investigation report.
Situations
- Crypto in a divorce — mapping and dividing assets.
- Crypto in an estate — access, valuation and division.
- Crypto in an insolvency — tracing and mapping assets.
- Gifting or inheriting crypto — origin and valuation.
Related topics
- Blockchain investigation explained — the method behind this investigation.
- Expert report for court — where the case file goes to a hearing.
- Counter-expertise and second opinion — where a report already exists.
- Proving the origin of assets — where the question is origin rather than division.
What can you do yourself right now?
Start by establishing what is available to record a position on the reference date: which exports, from which platforms, over which period, which addresses and which statements. Lawyers and notaries also use that overview to ask the other side for specific documents rather than in general terms.
What you can supply
An investigation starts from a single starting point. That can be a transaction, an address, a photo or screenshot of a wallet, or the communication you had with a party. Even without a complete administration, more can usually be established than people expect.
What also helps, depending on your situation:
- statements and exports from the exchanges where you hold an account
- addresses of your own wallets
- bank statements for the period concerned
- correspondence, messages and screenshots
Which data your case file requires differs from case to case. After a first conversation you receive a list tailored to your situation.
Data can be supplied at our office or digitally by various methods.
Paucitas usually responds within a few minutes to an hour, and in almost all cases the same working day. Paucitas can be reached by telephone 24/7 on +31 20 244 5774.
About the author
S.E. (Simcha) Schrijver is director and co-founder of Paucitas. His work covers blockchain investigation, tracing crypto assets, fact-finding, investigating investment fraud and counter-expertise, and drawing up expert and appraisal reports for private individuals, companies, lawyers, courts and public authorities. Among other things, he taught a course accredited by the Netherlands Bar (NOvA) on cryptocurrency, blockchain and wallets for criminal defence lawyers and legal practitioners.
Paucitas is a specialist firm for cryptocurrency and blockchain. Investigation is our daily practice: hundreds of case files have been handled to date, ranging from individual matters to investigations for lawyers, public authorities and companies. Simcha Schrijver has appeared in proceedings on several occasions and has delivered reports that were used in court cases.