Henry Hood comments on how high-net-worth spouses are using crypto assets in the midst of a divorce in Tatler

Henry’s comments were published in Tatler, 19 October 2022, and can be seen here.

Henry Hood, Head of our Family & Relationships department, offers insight into the growing role of cryptocurrency in divorce proceedings, highlighting the complexities and strategic considerations involved.

As digital assets like Bitcoin become more mainstream, they are increasingly used by high-net-worth individuals to obscure wealth during marital breakdowns. Their decentralised and often anonymous nature makes them difficult to trace, leading to a rise in legal disputes over non-disclosure.

Courts in England and Wales are adapting, now treating crypto as property that can be subject to legal orders, but challenges remain in proving ownership and valuing such volatile assets.

Legal experts caution against informal investigations, urging clients to follow proper legal channels to avoid breaching privacy laws. They recommend reviewing financial records for signs of crypto activity and, where appropriate, employing professional asset tracers.

However, Henry Hood emphasises the importance of proportionality in these cases. He advises that the decision to pursue hidden crypto assets should be based on strong evidence and a realistic assessment of their value and recoverability. If the court is convinced that assets have been concealed, it may compensate the other party by awarding a larger share of the disclosed assets.

Read the full article on the Tatler website [external link].