Hidden Cryptocurrency Assets in Divorce: Why Digital Wealth Is Being Missed in UK Financial Settlements

Cryptocurrency and Divorce: How Hidden Digital Assets Affect Financial Settlements in the UK

As cryptocurrency and other digital assets become increasingly mainstream, a growing number of divorcing couples may be missing out on their fair share of marital wealth — simply because they don’t know what to look for.

According to divorce financial expert Mark Keenan, CEO of Divorce-Online, hidden cryptocurrency assets are now one of the most overlooked issues in UK divorce cases.

“The nature of cryptocurrencies creates perfect conditions for hiding assets during divorce proceedings,” says Keenan. “Unlike traditional bank accounts or property, digital holdings can be extremely difficult to trace without specialist knowledge.”

Cryptocurrency ownership is rising — and so are risks in divorce

An estimated three million UK adults now own some form of cryptocurrency. While digital assets such as Bitcoin and Ethereum were once niche investments, they are now part of many people’s financial portfolios.

However, this shift has created new challenges when couples separate — particularly during the divorce financial settlement stage, where both parties must provide full and frank financial disclosure.

“We’re seeing more cases where one spouse suspects their partner has cryptocurrency investments that aren’t being disclosed,” Keenan explains. “Without proper investigation, those assets can remain completely hidden during financial settlements.”

Why hidden crypto happens so often

This issue is especially common where one partner has historically managed the couple’s finances, leaving the other unaware of digital investments or online accounts.

In practice, calculating a divorce settlement involves several key steps: identifying all assets, valuing them properly, disclosing them fully, and then negotiating an outcome that the court would consider fair. If crypto is missed at the disclosure stage, the whole process can be skewed.

Warning signs of hidden digital assets

Keenan says there are several red flags that may indicate undisclosed cryptocurrency or digital wealth, including:

• Unexplained transfers from joint bank accounts
• Gaps or inconsistencies in financial records
• Sudden secrecy around finances, devices, or online accounts
• Previous mentions of crypto investing that don’t appear in disclosure
• Tax returns referencing crypto gains or losses

“Many people don’t even realise their spouse owns cryptocurrency until the divorce is already underway,” Keenan adds.

Digital assets go beyond Bitcoin

While Bitcoin is the most well-known example, digital wealth can take many forms, including:

• Cryptocurrency held across multiple exchanges
• Private digital wallets
• NFTs (non-fungible tokens)
• Online gaming assets and in-game purchases
• Investments in crypto trading platforms and alt-coins

“What makes cryptocurrency particularly challenging is how easily it can be moved or hidden,” says Keenan. “Assets can be transferred between wallets or converted into different digital currencies in minutes.”

HMRC changes highlight the growing importance of crypto

HMRC has acknowledged the increasing significance of digital assets through the introduction of the Cryptoasset Reporting Framework (CARF), which came into effect on 1 January 2026.

The framework enables tax authorities to share information about crypto transactions, increasing transparency and compliance. However, many divorcing couples cannot rely on future reporting to protect them now.

“The fact that these rules exist shows how important digital assets have become,” Keenan says. “But people going through divorce today still need to take proactive steps to protect themselves.”

What to do if you suspect hidden cryptocurrency

If you believe your spouse may be concealing digital assets, Keenan recommends:

1. Review joint bank statements for payments to crypto exchanges
2. Check tax returns for references to crypto gains, losses, or trading activity
3. Ask specific questions during disclosure (rather than relying on general wording)
4. Consider using an expert with experience tracing digital assets

The courts take a serious view of non-disclosure. If hidden assets are discovered later, cases can be reopened and financial settlements adjusted.

“Hiding assets during divorce isn’t just unethical — it’s unlawful,” Keenan explains. “Both parties have a legal duty to provide full and frank financial disclosure.”

Asking the right questions matters more than ever

As digital wealth becomes more common, a fair outcome depends on identifying all assets — not just the traditional ones. That includes crypto, but also shares, pensions, savings, and any income-generating investments where there may be a transfer of some income-generating assets as part of the settlement.

If you’re aiming for a clean break, it’s especially important to ensure nothing has been missed. A clean break is only as good as the accuracy of the disclosure behind it.

“Anyone going through divorce should be asking the right questions about cryptocurrency and digital holdings,” Keenan concludes. “Failing to do so could mean walking away with far less than you’re entitled to.”