What are crypto assets and how are they treated in divorce?

OLS Solicitors Blog

What are crypto assets and how are they treated in divorce?

By Lara Davies on October 29, 2024

Cryptocurrency and Divorce: What You Need to Know

With the surge in cryptocurrency’s popularity, it’s no surprise crypto assets are becoming increasingly significant in divorce settlements. As of 2024, over 23,000 cryptocurrencies exist, valued collectively at over £808 billion. If digital assets like Bitcoin or Ethereum are part of your marital assets, here’s what you need to know.

What Are Crypto Assets?

Crypto assets, or cryptocurrencies, are digital currencies using blockchain technology. Unlike traditional currencies controlled by banks and governments, cryptocurrencies operate decentralised and peer-to-peer. Popular examples include Bitcoin and Ethereum, though thousands of others exist.

In divorce cases, crypto assets are treated as valuable items that can be owned, transferred, and included in settlements, much like traditional financial assets.

Are Crypto Assets Considered in Divorce Settlements?

Yes. In the UK, crypto assets are handled similarly to other financial assets. Both parties are required to provide “full and frank” disclosure of all financial holdings, including cryptocurrencies. This ensures fair and complete division of the marital estate.

Valuation can be challenging due to market volatility, but crypto assets are undoubtedly part of divorce negotiations.

How Are Crypto Assets Valued in Divorce?

Accurately valuing crypto assets can be complex because their prices fluctuate rapidly. Unlike stable assets such as property, cryptocurrencies may dramatically rise or fall in value within short periods.

Typically, valuation is calculated by multiplying the number of crypto tokens by their current market price. Timing is crucial to ensure fairness, especially considering potential capital gains tax if the assets have increased significantly in value.

For more information, see the official HMRC guidance on cryptocurrency taxation.

Dividing Crypto Assets in a Divorce Settlement

There are several ways to handle crypto assets during divorce:

  • Transfer of Ownership: Transferring crypto assets directly to your spouse’s wallet.
  • Liquidation and Division: Selling crypto assets and dividing the proceeds, carefully considering market timing.
  • Offsetting with Other Assets: Agreeing to offset cryptocurrency against other marital assets like property or savings, typically using an average valuation.

What If Crypto Assets Are Hidden?

Transparency is legally required. If you suspect your spouse is hiding cryptocurrency, consider these steps:

  • Review financial transactions for transfers to exchanges such as Coinbase or Binance.
  • Engage a forensic financial investigator.
  • Request a court order for disclosure from cryptocurrency exchanges.

The court can adjust settlements if hidden assets are discovered.

Protecting Your Crypto Assets in Divorce

If you own crypto assets, maintain clear transaction records—dates, amounts, and values—to protect yourself and avoid disputes. Professional advice on proper disclosure and asset valuation is vital to ensure fairness.

Please Remember

Cryptocurrency is increasingly relevant in divorce settlements, requiring careful handling for fairness and transparency. Consulting legal and financial experts early can significantly simplify the division process.

Ready to Discuss Your Situation?

Crypto assets add complexity to divorce proceedings, but you’re not alone. Our specialist team at OLS Solicitors is ready to assist. Whether you’re starting divorce proceedings or need clarity on your rights, contact us today for personalised advice.

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    What is a C100 Form? When to Apply & How It Works

    OLS Solicitors Blog

    What is a C100 Form? When to Apply & How It Works

    By Lucy Batstone on October 10, 2024

    C100 the children dispute form

    Understanding the C100 Form: What It Is and When You Might Need One

    If you’re facing a situation where you and your child’s other parent cannot agree on important decisions about your child’s upbringing, you might need to seek assistance from the court. This is where the C100 form comes into play. But what exactly is a C100 form, and when should you use it?

    What is a C100 Form?

    A C100 form is the document you must submit to the court when you are applying for a court order regarding disputes about a child. These applications often cover:

    Child arrangements: Determining where a child will live and how much time they will spend with each parent.
    Specific issues: Deciding specific matters such as which school the child should attend, religious upbringing, or significant medical treatment.
    Prohibited steps orders: Restricting certain actions, such as preventing a parent from taking the child abroad without consent.

    Once the form is filed, the court becomes involved in making decisions that are in the best interests of the child.

    When Might You Need a C100 Form?

    While it’s always best to try to resolve disputes through negotiation or mediation, there are situations where this isn’t possible. If mediation has failed or discussions have broken down, you might need to apply for a court order using the C100 form. Common scenarios include:

    1. Disagreements over where the child should live
    If you and the other parent cannot agree on your child’s primary residence, a child arrangements order via a C100 form might be necessary to formalise a decision.

    2. Disputes over parental access
    Where contact with your child is being denied or there are disagreements about how much time a parent should spend with the child, a C100 form can be used to apply for a court-enforced arrangement.

    3. Specific decisions
    Issues such as deciding which school your child should attend or choices about healthcare can sometimes require a specific issue order if parents cannot agree.

    4. Preventing certain actions
    If you need to prevent the other parent from making significant decisions—such as relocating your child abroad without permission—you can apply for a prohibited steps order.

    Mediation Requirement Before Filing a C100 Form

    Before submitting a C100 form, most applicants are required to attend a Mediation Information and Assessment Meeting (MIAM). The purpose of this meeting is to see whether mediation could resolve the dispute without going to court. Mediation is often quicker, less stressful, and less costly than court proceedings.

    However, there are exceptions to this requirement. You can skip the MIAM if:

    – There is evidence of domestic violence.
    – The matter is urgent (e.g., an imminent threat of a parent taking the child out of the country).
    – Certain other exemptions apply (such as a history of child neglect).

    For more information on Mediation Information and Assessment Meetings (MIAMs) and how they may help, click here.

    Timeframes: How Long Does It Take?

    Once you file the C100 form, the court process can take time. Generally, a first hearing is scheduled within 4-6 weeks of submitting your application. However, this may vary depending on the complexity of the case and the availability of court resources. Cases involving child welfare are prioritised, but expect the entire process, from application to the final ruling, to take several months in most cases.

    For a detailed overview of what happens after filing the form, including timescales, visit the Government’s child arrangements page here .

    Costs Involved

    Filing a C100 form comes with a court fee, which currently stands at £232. It’s important to consider the potential legal costs as well, especially if you choose to have legal representation. While it’s possible to file a C100 form without a solicitor, obtaining legal advice can be invaluable in ensuring that your case is presented effectively. Legal aid may be available for those who meet specific criteria, particularly in cases involving domestic abuse.

    To see if you’re eligible for legal aid, check out the Legal Aid Calculator here.

     Consequences of Non-Compliance

    Once a court order has been issued following the C100 application, both parents are legally bound to comply with it. Failing to adhere to the order can result in serious consequences, including enforcement orders, fines, or, in extreme cases, imprisonment. The court takes breaches of orders seriously, especially if they impact the welfare of the child.

    For further guidance on what happens if someone doesn’t follow a court order, refer to the Enforcement of court orders section here.

    How OLS Solicitors Can Help

    At OLS Solicitors, we understand how stressful and emotional it can be to deal with disputes involving children. Our experienced family law team can guide you through the process, whether it’s helping you understand if a C100 form is necessary, preparing the application, or representing you in court. With expert legal advice, we aim to resolve matters as swiftly and amicably as possible, always prioritising the best interests of your child.

    Whether you’re facing difficulties with child arrangements, specific issues, or need to prevent certain actions from being taken by the other parent, we’re here to offer clear, supportive, and effective legal guidance every step of the way. Let us help you navigate these challenging times with confidence and ensure the best possible outcome for your family.

    Typical Solicitor Costs for C100 Form

    Preparation & Advice: £250–£350 + VAT (basic C100).
    Complex/With Allegations: £350–£500+ + VAT (if C1A form for abuse is needed).
    Checking Service: £125 + VAT (if you draft it yourself and want it reviewed).
    Court Fee: £263, payable directly to the court.

    Factors Affecting Cost

    Additional Documents: Fees increase if further documents or statements are required.
    Emergency Hearings: Additional costs apply if the application is urgent.
    Solicitor’s Hourly Rate: Some solicitors work on hourly rates rather than fixed fees, which can exceed the estimates above.

    Note: You may be able to get help with court fees if you are on a low income or certain benefits

    Contact us for assistance

    For expert assistance with your C100 application or any other family law matter, please get in touch with OLS Solicitors today on 01554 756952 . We’re here to help you make the right decisions for you and your child’s future.

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