What Happens to Cryptocurrency , Reward Points and Digital Assets in Divorce?

What Happens to Cryptocurrency , Reward Points and Digital Assets in Divorce? 

When couples divorce, they often focus on dividing the family home, savings and pensions. However, many people also own valuable digital assets, including cryptocurrency, online businesses, air miles and loyalty rewards. 

These assets can have financial value and should not be overlooked during divorce proceedings. 

What Are Digital Assets? 

Digital assets include anything of value that exists electronically, such as: 

• Cryptocurrency 

• Online investment accounts 

• Digital wallets 

• Online businesses 

• Monetised social media accounts 

• Domain names 

• Although some may appear insignificant, together they can represent substantial value. 

Are Digital Assets Included in a Divorce Settlement? 

Yes. During financial proceedings in England and Wales, both spouses must provide full and frank disclosure of all assets, including those held online or digitally. 

This includes cryptocurrency, online businesses, overseas investments and other valuable digital assets. The court aims to ensure a fair financial settlement by considering all relevant financial resources. 

Cryptocurrency and Divorce 

Cryptocurrency is becoming increasingly common in divorce cases. 

Like shares or investment portfolios, cryptocurrency forms part of a person’s financial resources and should be disclosed during financial proceedings. 

Because crypto can be stored in private digital wallets rather than bank accounts, it may be harder to identify. However, anyone involved in divorce has a legal duty to disclose all assets honestly. 

Attempting to hide cryptocurrency could lead to: 

• Court penalties 

• Costs orders 

• Delays to proceedings 

• Financial settlements being reopened 

What About Online Businesses? 

Online businesses can also form part of a financial settlement. 

Examples include: Amazon or Etsy shops, Shopify stores, Subscription businesses, YouTube channels, Blogs generating advertising income. 

The court may consider the business’s value, profitability, future earning potential and intellectual property. In some cases, a professional valuation may be required. 

Social Media Income 

For influencers and content creators, social media can be a valuable commercial asset. 

While personal accounts are not usually transferred between spouses, any income they generate may be considered when assessing financial resources and future earning capacity. 

Don’t Forget Financial Disclosure 

During divorce proceedings, both parties must fully disclose all assets, not just property and bank accounts. This includes cryptocurrency, digital investments, online businesses and other valuable digital assets. Failing to disclose them can have serious legal consequences. 

Practical Tips 

If you own digital assets, you should: 

• Keep records of all cryptocurrency and digital investments. 

• Maintain records of income from online businesses. 

• Avoid transferring assets before taking legal advice. 

• Ensure your financial disclosure is complete and accurate. 

How Blanchards Family Law Can Help 

Modern divorces increasingly involve assets that exist online as well as in the real world. Whether you own cryptocurrency, an online business, valuable loyalty rewards or other digital investments, it’s important to understand how they may affect your financial settlement. 

At Blanchards Family Law, we provide practical, tailored advice to help clients identify, value and fairly divide all matrimonial assets. With offices in Henley, Marlow, Beaconsfield and London, we support clients across England and Wales. 

If you have questions about digital assets during divorce, contact our experienced family law team on 0333 344 6302. 

Frequently Asked Questions 

Are air miles considered an asset during divorce? 

Potentially. Significant reward balances may be taken into account during financial negotiations, even if they cannot be directly transferred. 

Do I have to disclose cryptocurrency? 

Yes. Cryptocurrency is a financial asset and should be included in your financial disclosure. 

Can my spouse hide digital assets? 

They should not. Both parties have a legal duty to provide full and frank financial disclosure. 

Are online businesses included in divorce settlements? 

Yes. If they have financial value or generate income, they may be considered as part of the matrimonial assets. 

Should I seek legal advice? 

Yes. Specialist family law advice can help ensure digital assets are properly disclosed and fairly considered during your financial settlement. 

How can we help?

Contact us today at 0333 344 6302 to arrange an initial meeting. Offices in Henley-On-Thames, Beaconsfield, Marlow and London.

Blanchards Law is a highly experienced family law firm, and we offer a nationally leading mediation service. We are recognised for our leading family law services in the Legal 500 and the Spears 500.