29 October 2025
The rise of cryptocurrency and other digital assets is transforming how financial disclosure and division are handled during divorce and not always for the better.
Whether it’s Bitcoin, Ethereum, or Elon Musk’s favourite, Dogecoin, digital currency has firmly entered the mainstream. According to research from the UK’s Financial Conduct Authority, around 12% of UK adults owned crypto in 2024, up from just 4% in 2021. That surge is now being reflected in family courts, where hidden or undeclared digital assets are becoming an increasing concern.
The Family Law team is increasingly encountering cases where one party suspects the other of concealing money in cryptocurrency wallets. Unlike traditional assets such as bank accounts or property, digital currencies can be extremely difficult to identify if someone chooses not to disclose them and even harder to value accurately.
The Perfect Hiding Place?
Cryptocurrency offers a tempting way to mask wealth during divorce. It’s easy to purchase, largely unregulated, and doesn’t require intermediaries such as financial advisers or banks. For those inclined to conceal assets, crypto can act like a virtual offshore account but without the travel costs.
While UK law requires full and frank financial disclosure, the system still relies heavily on honesty. Typically, divorcing couples must share financial records from the previous 12 months unless something triggers deeper scrutiny. If crypto transactions occurred earlier or are deliberately omitted, they may never come to light.
Unlike traditional bank accounts, crypto wallets don’t send monthly statements or leave obvious paper trails. They can be stored on mobile devices, encrypted USB drives, or hidden behind “seed phrases”, unique combinations of words required to access a wallet. If a spouse claims they’ve lost access, proving otherwise can be extremely difficult.
Following the Digital Trail
Red flags often emerge when financial patterns shift unexpectedly: unexplained transfers, changes in spending, or new tech purchases. In some cases, forensic accountants can trace transactions on the blockchain, though such investigations are often complex and costly, and may only be justified in higher-value cases.
Even when an exchange account is identified, valuing crypto holdings poses its own challenges. Cryptocurrency prices can fluctuate wildly, meaning that values agreed one day may look very different by the time a settlement is reached.
The Legal Landscape Lags Behind
Despite crypto’s growing prominence, family law has yet to catch up with its complexities. There is little formal guidance or established case law, and recovering assets can be extremely difficult when digital currencies are held in overseas exchanges beyond the reach of UK enforcement.
Clients are encouraged to raise any concerns about possible cryptocurrency involvement as early as possible in the divorce process. While courts can overturn settlements where non-disclosure or fraud is later discovered, doing so is often difficult, expensive, and time-consuming. It is far better to ensure full and frank disclosure before a divorce is finalised.
Importantly, attempts to secretly access a spouse’s digital accounts or gather information without consent could breach privacy laws and backfire in court. Evidence obtained improperly may be ruled inadmissible or even result in counterclaims of harassment.
Those who suspect financial concealment should address it through formal disclosure processes and seek appropriate legal advice. In many cases, simply making a partner aware that hidden assets could be uncovered is enough to encourage full transparency.
What You Can Do
If you’re going through a separation and believe cryptocurrency might be involved, taking early, informed action is key.
As finances become increasingly digital, crypto is becoming a fixture in family law. Ensuring it’s properly disclosed and valued could make the difference between a fair settlement and a costly oversight.
For confidential advice on divorce and financial disclosure in Bournemouth, and across Dorset, contact the Family Law team at Aldridge Brownlee Solicitors. Our experienced divorce lawyers can guide you through complex cases involving cryptocurrency, hidden assets, and financial settlements.
Get in touch with our Family Department today to find out how we can support you. Call 01202 294411 or send us a message online: Contact Us AB Solicitors For Your Legal Needs
