Crypto in a divorce: mapping and dividing assets
Date: | Week 26 | Reading time: 6 minutes | Updated: Author: Simcha Schrijver
In short
Crypto in a divorce should be put on the table like any other asset, but it does not appear on a bank statement and is easier to overlook. If you suspect there is more than has been disclosed, you may be right, but it may also turn out to be less. A neutral overview on a fixed valuation date gives both sides clarity.
Paucitas is an independent expert firm in the Netherlands that verifies and investigates crypto assets, in hundreds of cases a year. Paucitas sets out the facts of what is there and does not take sides.
Get in touch with Paucitas or ring +31 20 244 5774. In a free intake you will hear what can be mapped in your situation.
In a nutshell
A fair split starts with an honest overview. Paucitas records which crypto existed on the valuation date and what it was worth, so your solicitor can take it from there.
A divorce is hard enough. If on top of that you feel your partner is keeping crypto out of sight, it adds to the worry. You do not want arguments about suspicions; you want to know how things stand. We understand that.
In this blog you will read why crypto in a divorce needs separate attention and how Paucitas maps the assets neutrally.
Crypto in a divorce: why does it need separate attention?
When a marriage or civil partnership ends, money and property have to be divided. GOV.UK explains how money and property are dealt with in England and Wales; Scotland has its own rules. Crypto does not fit easily:
- It does not appear on a bank statement.
- It can be spread across several wallets and exchanges, including a hardware wallet in a drawer.
- Its value swings sharply, so the valuation date matters a great deal.
Does this sound like your own divorce? Let Paucitas take a look with you. You can ring at any time, 24/7, on +31 20 244 5774.
Which signs can point to undisclosed crypto?
Undisclosed crypto often leaves traces outside the blockchain. A few signs that could mean something:
- Transfers from a bank account to an exchange, even small and scattered ones.
- The purchase of a hardware wallet or a subscription to a trading platform.
- Emails or apps that point to crypto use.
- Crypto that once appeared on a tax return and later disappears from view.
Such signs are not proof. There may be an ordinary explanation, and sometimes there turns out to be less than feared. They are, however, a starting point for an investigation.
How does Paucitas map crypto assets in a divorce?
Paucitas does all tracing itself, without tracing tools. The investigation has two layers. First, the known holdings: the wallets and accounts you both know about. Then, based on leads, the question of whether there is more than has been disclosed. Paucitas also goes through documents, emails, bank statements and other communication, so that a complete picture emerges, with a timeline and where the assets went, step by step.
Paucitas does not draw legal conclusions. Whether something was deliberately hidden, and what that means, is for your solicitor and ultimately the court. We record what the data shows.
An example from practice
A woman noticed transfers from her husband to an exchange on old bank statements. He said it was a small amount that had long gone.
Paucitas followed the route from that exchange. Part had indeed been sold. Another part was still on a wallet that was not in the disclosure. With the report, her solicitor could have the conversation on the basis of facts. A fuller case is in hidden crypto in a divorce.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
Why is valuing on a fixed date so important?
Crypto can rise or fall sharply in value within weeks. That is why the parties usually agree a valuation date. Paucitas records which holdings existed on that date and what they were worth, in a way anyone can recalculate.
That gives a figure both solicitors can work with, instead of a snapshot that remains in dispute.
What is in the report?
- Which wallets and accounts were examined, and why.
- Which transactions were followed, with the valuation date used.
- The balances and valuation on that date.
- What is established and where uncertainty remains.
The report is neutral. Both parties and their solicitors can follow the steps.
Who maps crypto in a divorce neutrally?
Paucitas. We work with your family solicitor, who handles the legal side. You receive a report that anyone can follow and understand step by step. What an expert does in proceedings is explained in a crypto expert in a court case. Is there already a report from the other side? Then a counter-expertise can help.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, so there are no surprises.
- Turnaround: from the same day to around two weeks.
- Contact: you can ring at any time, 24/7. We answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Want to know how things really stand? Get in touch for a no-obligation introduction, or ring +31 20 244 5774. More on our legal support is in crypto in divorce and legal matters.
Sources: GOV.UK, money and property when you divorce or separate; GOV.UK, get a divorce.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about crypto in a divorce
Is crypto included when assets are divided in a divorce?
Paucitas explains: crypto is an asset like any other. Whether and how it is divided depends on your situation and is a question for your solicitor. Paucitas maps what is there.
Can Paucitas see whether my partner is hiding crypto?
Paucitas can map, based on leads, whether there is more crypto than has been disclosed. Whether something was deliberately hidden is for your solicitor and the court to judge.
Which valuation date does Paucitas use?
Paucitas uses the date agreed by the parties or their solicitors. Paucitas records the balances and value on that date so everyone can check them.
Does Paucitas take sides in a divorce?
Paucitas does not take sides. The report is neutral and only describes what the data shows. That is exactly what makes it useful to both sides.
How long does an investigation into crypto in a divorce take?
Paucitas takes from the same day to around two weeks, depending on the case. You receive a bespoke quote in advance, which we go through together.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.