Cryptocurrency and Digital Assets in Divorce Settlements

As digital currency reshapes the global financial landscape, it is also transforming the way divorces are litigated and settled. Cryptocurrency and digital assets in divorce settlements require skilled handling, as asset concealment, valuation uncertainty, and complex ownership structures often collide. For spouses who hold digital investments, or who suspect their partner does, divorce can trigger a variety of legal, financial, and technological questions that traditional approaches may not adequately address. If you have questions about cryptocurrency and digital assets in divorce settlements, it is in your best interest to seek the advice of an attorney promptly. At McClure Law Group, our knowledgeable Dallas divorce attorneys have ample experience handling complex dissolution proceedings, and if you hire us, we can help you protect your interests.

Under Texas law, all property, regardless of its form, is subject to characterization and potential division. All property owned by either spouse at the time of divorce is presumed to be community property unless one party proves otherwise. This presumption even applies to cryptocurrency and digital assets in divorce settlements, regardless of how unconventional or intangible these assets may be. However, characterizing these assets as either community or separate property is often more challenging than with traditional forms of wealth.

For example, if one spouse purchased Bitcoin before the marriage using personal funds, that asset may be separate property. Conversely, if cryptocurrency was acquired during the marriage, it may be considered community property and subject to division. The issue is further complicated by the often-anonymous nature of cryptocurrency transactions and the use of offshore or unregulated exchanges.

Valuation presents a particularly thorny challenge when dealing with cryptocurrency and digital assets in divorce settlements. Unlike traditional investments, cryptocurrency markets can experience extreme volatility, with asset values fluctuating significantly over the course of days or even hours. Courts in Texas generally seek to divide marital property in a “just and right” manner, and, to do so fairly, an accurate and timely valuation of digital holdings is essential.

Valuing cryptocurrency may also require determining whether there are staking rewards, airdrops, or appreciation to account for, all of which could influence the asset’s worth. Moreover, many spouses hold digital assets in decentralized wallets or on overseas platforms that may not issue regular statements. In some cases, a party may need to retain a forensic accountant with expertise in blockchain tracing to locate wallets, confirm balances, or verify historical pricing data.

When dividing cryptocurrency and digital assets in divorce settlements, courts may award the entire holding to one spouse and offset its value with other marital assets, or they may order a direct transfer of digital assets to the other spouse. The division mechanism depends on numerous factors, including the nature of the assets and the parties’ preferences.

Cryptocurrency is only one category of digital asset potentially at issue in a divorce. Increasingly, parties may own digital art (NFTs), domain names, virtual land in metaverse platforms, or accounts tied to loyalty programs, gaming platforms, or streaming services that hold real monetary value. These assets are often overlooked during initial disclosure but can carry significant worth or sentimental importance. As such, they must be characterized, valued, and potentially divided as well.

The rise of digital assets has fundamentally changed the financial implications of divorce. Cryptocurrency and digital assets in divorce settlements require a sophisticated legal approach, one that blends traditional family law principles with cutting-edge financial and technological insight. At McClure Law Group, our knowledgeable Dallas divorce attorneys provide comprehensive representation to clients facing complex property division involving digital holdings, and if you hire us, we can help you work towards safeguarding your long-term financial well-being. Our main office is located in Dallas, and we also meet with clients by appointment at our Collin County office in Plano. We regularly assist individuals in Dallas, Garland, Fort Worth, Rockwall, Irving, Richardson, Frisco, and McKinney. We represent clients in family-law matters across Dallas, Denton, Rockwall, Collin, Tarrant, and Grayson Counties. To schedule a consultation, call us at 214.692.8200 or complete our online contact form.