Crypto and Digital Asset Disclosure
Crypto and Digital Asset Disclosure in
Gold Coast Family Law Property Settlements
Cryptocurrency is no longer a fringe investment. Bitcoin, Ethereum, NFTs, and other digital assets are now part of many Australians’ portfolios — including business owners, tech professionals, and investors living right here on the Gold Coast.
But when relationships break down, crypto adds a layer of complexity to property settlements. It’s decentralised, often volatile, and not always easy to trace — which makes full disclosure not just essential, but legally required.
At Collective Family Law Group, we help individuals across the Gold Coast navigate property settlements involving digital assets with strategy, clarity, and confidence.
Why You Must Disclose Crypto in a Property Settlement
Under the Family Law Act 1975, both parties are legally required to provide full and frank disclosure of their financial circumstances. That includes:
- Cryptocurrency (e.g., Bitcoin, Ethereum, Solana)
- NFTs (non-fungible tokens, including art and gaming assets)
- Stablecoins and decentralised finance (DeFi) holdings
- Wallets and exchanges — whether onshore or offshore
- Tokens, coins, and digital holdings held via businesses or trusts
- Failure to disclose any of these could result in:
- Your settlement is being set aside
- You are being ordered to pay your ex-partner’s legal fees
- An adverse inference drawn against you by the court
- Potential criminal penalties for serious non-disclosure
Why Crypto Is So Challenging in Family Law
Unlike traditional bank accounts, crypto poses unique hurdles:
- Volatility: Prices fluctuate wildly—what’s worth $80k today might be $50k next month
- Decentralisation: Assets can move instantly across borders or platforms
- Pseudonymity: Wallets don’t carry names—but blockchain tracing can still uncover ownership
- Multiple storage formats: From hot wallets on exchanges to cold storage on USBs, hardware wallets, or even paper backups
These factors make crypto harder to detect — but not impossible. Courts, lawyers, and forensic accountants are increasingly equipped to trace and value digital assets.
Practical Example: Hidden Bitcoin on the Gold Coast
Let’s say your partner withdrew $150,000 from a joint account during the relationship and later claims it was “lost” in crypto. Through subpoenas to exchanges and blockchain analysis, your legal team finds those coins sitting in an undisclosed wallet. The court can treat that money as part of the asset pool and adjust the final division accordingly.
Just like with property or cash, hiding digital assets can backfire.
How the Court Handles Crypto in Divorce
Courts apply the same four-step property settlement process to crypto as they do for any other asset.
Step 1: Identify and Value All Assets
This includes:
- Every wallet and exchange account
- All token and coin holdings
- NFTs and other digital collectibles
- Pending crypto-based income (e.g., staking rewards, mining profits)
Valuation is tricky due to price swings, so courts may use:
- Agreed date of separation
- Date of mediation or trial
- An average value over time
- Third-party expert valuation reports
Step 2: Assess Each Party’s Contributions
If your partner bought crypto during the relationship using joint savings — or you supported them while they traded full-time — your contributions (financial or non-financial) are relevant.
Courts consider both direct and indirect contributions, even if only one person managed the investment.
Step 3: Account for Future Needs
If one party receives a volatile crypto portfolio, the other may receive more stable property (e.g., real estate or super) to balance the risk.
Courts also look at factors like:
- Parenting responsibilities
- Health or disability
- Earning capacity
- Lifestyle maintenance
Step 4: Ensure a Just and Equitable Outcome
Fairness is the bottom line. Courts will adjust settlements to reflect:
- Any concealment of digital assets
- One party bearing disproportionate risk
- Unequal access to stable income-producing assets
Hypothetical Scenarios for Crypto Disputes
1. 🚨 Hidden Wallets Discovered
You believe your ex owns more crypto than they disclosed. By issuing subpoenas to major exchanges and consulting a blockchain tracing expert, your legal team finds $100,000 in unreported coins.
Result: The court adds the value back into the pool and may penalise your ex.
2. 📉 Market Drop Between Separation and Trial
You separated when Bitcoin was $60,000. At trial, it’s worth $35,000. The court agrees to fix the crypto’s value at the time of mediation to avoid punishing one party due to market volatility.
3. 🎨 NFTs as Investment Assets
Your ex holds NFTs connected to digital art. A specialist valuer reviews similar sales and assigns a fair market value. The court includes the NFTs in the divisible asset pool like any other collectible.
Crypto as a Financial Resource (Not Property)
Sometimes courts treat crypto not as property, but as a financial resource — especially when one party receives regular crypto distributions from a business or trust.
This can affect how the settlement is split, even if the crypto isn’t formally included in the asset pool.
What If You Suspect Your Ex Is Hiding Crypto?
You’re not powerless. Here’s what you can do:
1. Get Specialist Legal Advice
Work with a family law team (like ours at Collective) that understands digital assets. We also engage forensic accountants who can interpret blockchain data and crypto transaction histories.
2. Preserve All Evidence Early
Take screenshots of:
- Wallet balances
- Exchange accounts
- Transaction histories
- Email notifications and access logs
Even if you lose access later, your early evidence can make or break the case.
3. Demand Full Disclosure
Ask for:
- Wallet addresses
- Exchange login records
- Crypto tax reports
- Transaction logs
If they refuse, your lawyer can issue subpoenas to exchanges (like Binance, Coinbase, or Australian providers) and hire experts to trace wallets.
4. Freeze the Assets If Needed
If you believe crypto is being moved or cashed out secretly, courts can issue freezing orders to prevent transfers. This is especially important if the asset pool is high-value and time-sensitive.
5. Agree on a Valuation Method
Due to crypto’s volatility, you and your legal team should agree early on:
- A valuation date
- How values are determined (e.g., exchange rates, averages)
- Which party is best suited to manage the asset post-settlement
This avoids disputes when prices swing mid-proceedings.
Disclosure Obligations Are Real — and So Are the Risks of Non-Compliance
- The court assumes the worst and makes unfavourable orders
- Having to pay the other party’s legal fees
- Reversal of a final property settlement later
Planning Ahead: Prenups and BFAs for Crypto Holders
If you own substantial crypto or plan to accumulate more in the future, consider a Binding Financial Agreement (BFA).
With a BFA, you can:
- Define how digital assets will be treated in the event of separation
- Ring-fence pre-existing holdings
- Clarify how future purchases or mining profits are divided
- Reduce the risk of litigation later
We regularly draft BFAs for high-net-worth individuals, investors, and tech entrepreneurs across South East Queensland — including crypto-specific clauses to suit your portfolio.
Final Takeaways for Gold Coast Crypto Holders in Separation
💼 Treat digital assets like any other property — they must be disclosed
🔍 Don’t ignore red flags — suspicious withdrawals or unexplained gaps may be hiding wallets
💡 Work with experts — legal and forensic
📅 Fix a clear valuation date early
⚖️ Expect courts to enforce fairness, even in the fast-moving world of digital finance
Need help managing crypto in your property settlement?
At Collective Family Law Group, we understand both the law and the technology. We’ve helped clients across the Gold Coast protect their crypto assets, uncover hidden holdings, and reach settlements that reflect the modern financial landscape.
Book a consultation here with Collective Family Law Group
Contact us today to make an appointment to discuss your family law matters, or for further information on how we can assist you so that you can move on with your life with certainty and security.