Both parties must be open and honest in disclosing their financial positions on divorce and this will include crypto assets. More information in this regard can be found in our earlier insight article: ‘What are crypto assets and how are they treated on divorce?’ . In this article we explore the things to look out for when completing your own disclosure and reviewing your spouse’s disclosure.
What should you look out for?
Within an individual’s bank statements entries relating to crypto exchanges (crypto currency trading platforms), such as Coinbase or Binance, may be visible and enable further enquiries to be made to fully understand the nature of the holding and gain an idea of the value. One of the difficulties with crypto assets is that they are not physical assets, rather they are created and held digitally by the owner. Records of crypto assets are held within blockchains which are public ledgers which record transactions. Data held within blockchains is stored in timestamped blocks.
Both parties must be open and honest in disclosing their financial positions. It is important questions around crypto assets are made at the outset as there is a risk these digital assets can be overlooked.
In short, if one party does own digital assets they will have an online crypto ‘wallet’ which details the exact nature of the crypto assets held. Wallets are unique and will have their own identifying address, similar to a bank account number, that is able to be shared with the other party to view the blockchains and assets contained in the wallet. The public key can be disclosed, however the private key should remain private as it should only be used by the owner of the digital assets to access the wallet and facilitate transactions.
Obtaining documents without your spouse’s consent – ‘self help’
It is important you do not obtain and/or disclose documents belonging to your spouse without their express consent as this is seen as an infringement to their right to confidentiality and there can be consequences. This is also known as ‘self help’. Much is dependent on the circumstances in which the documentation was obtained and a number of other factors, however caution should always be exercised.
Documents belonging to your spouse should be provided direct by them, or their legal representatives and be requested through the proper legal channels. If you do not believe your spouse has been entirely open in their disclosure questions can be raised and requests for further information made either through correspondence or by applications to Court.
Glossary
Blockchain – A shared, distributed ledger of all recorded transactions across a peer-to-peer network which constitutes a structured method of storing data.
Wallet – A program that stores cryptocurrency keys (public and/or private) and allows access to your coins.
Public key – Public keys facilitate transactions between parties and provide proof of all transactions on a blockchain.
Private key – Private keys are instruments used by those with ownership over crypto assets and authorise users to make transactions from their account.
How can Tozers help?
Tozers can help by providing expert legal advice and guidance on how to navigate the complexities of dividing crypto assets during a divorce. Our team of experienced lawyers can assist in determining the value of crypto assets, ensuring a fair distribution between spouses, and addressing any legal issues that may arise.
