Cryptocurrency is becoming an increasingly visible issue in divorce cases. Recent reporting has highlighted how lawyers are encountering situations where crypto holdings have been overlooked or not fully disclosed during financial proceedings, which can lead to inaccurate settlements.
Part of the challenge is the nature of digital assets themselves. Cryptocurrency can be held across multiple exchanges, wallets and platforms, making it less obvious than traditional assets such as bank accounts or property. Its value can also change quickly, which can complicate the process of identifying and valuing matrimonial property.
If you are separating in Scotland, these five practical steps can help you identify, value and deal with crypto assets fairly and efficiently.
1. Identify the assets and where they are held
‘Crypto’ isn’t just coins. They may be held across a range of accounts, wallets and platforms, including:
- Centralised exchanges
- Mobile or hardware wallets
- NFTs and tokens (often on different blockchains)
Practical tip: Check email inboxes and bank statements for clues such as exchange sign-ups, 2FA messages or payments to crypto platforms.
2. Gather all the records early
Access can change quickly when passwords are updated, phones are replaced or accounts become locked. It’s sensible to download what you can now, including:
- Exchange statements showing balances and transaction history
- Date-stamped screenshots of balances and transaction IDs
- Bank or credit card statements showing payments in and out of exchanges
- Any tax statements produced by exchanges or tax software
3. Secure your access and control
With crypto, whoever controls the login or private keys effectively controls the asset and its records. Unlike banks, non-custodial wallets do not provide a reset mechanism for private keys. If access is lost, the assets may be permanently inaccessible. If records are limited, focus on who controls the associated email accounts, devices, two-factor authentication (2FA) apps or phones and any download histories while access is still available.
Important: Never share private keys except with a trusted professional through secure channels. Private keys give full control over the assets. If you are concerned that assets may be moved or hidden (dissipated), urgent interim measures may be available to preserve property and secure disclosure. Legal advice should be taken promptly.
4. Agree the valuation approach
Crypto prices can jump or drop within days. In Scotland, the date of separation, known as the relevant date, is the key reference point for determining what assets formed part of the matrimonial property and their value. Capture values as close to the separation date as possible through screenshots or statements and agree a method of valuation to minimise future disputes.
5. Don’t overlook tax and fees
Selling or transferring crypto assets may trigger tax depending on your circumstances. There may also be withdrawal or network fees simply to move the assets. When planning next steps, consider potential tax liabilities on sale, platform fees, the timing of any sale and whether an in-kind transfer may be more practical.
Transfers between spouses or civil partners may qualify for UK “no gain, no loss” treatment. Taking a coordinated approach with legal and tax advisers can often lead to a more straightforward outcome.
Quick checklist
- Make a note of exchanges, wallets, NFTs and platforms
- Secure access (emails, devices, 2FA) before anything changes
- Download statements and take date-stamped screenshots
- Capture values as close as possible to the separation date
- List fees or restrictions and consider tax early
- Speak to a Scottish family law solicitor to structure disclosure and settlement
