Cryptocurrency turns up in more and more Australian property settlements, and it's one of the easiest assets to leave off a financial statement. It doesn't sit in a bank, it can be held on a device the size of a USB stick, and it can move overseas in minutes. It is still property, it still has to be disclosed, and it can usually be found.

This guide explains how crypto is treated in an Australian property settlement, how hidden holdings are uncovered, how they're valued, and when an expert is worth bringing in. I've traced concealed crypto in Australian Family Court matters worth between AUD 500,000 and AUD 5 million per matter, and the same patterns come up again and again.

Is Crypto Property Under the Family Law Act?

Yes. Cryptocurrency is property for the purposes of a property settlement under the Family Law Act 1975, the same as shares, cash or real estate. It forms part of the property pool whether it's held on an Australian exchange, an overseas exchange, a hardware wallet, in DeFi protocols, as NFTs, or through a company or trust a party controls.

It doesn't matter whose name it's in, when it was bought, or whether it was a "hobby". Crypto acquired before or during the relationship is considered along with everything else. Married couples and de facto couples are both covered; de facto couples in Western Australia are dealt with under WA legislation, which follows similar principles.

Your Duty to Disclose Crypto

Every party in a family law property case has a duty of full and frank disclosure. It covers all property, including crypto, and it continues for the whole case, so new holdings or transfers have to be disclosed as they happen.

In practice that means disclosing:

  • Every exchange account, in Australia or overseas, with statements
  • Every self-custody wallet, and what it holds
  • Crypto held through companies, trusts or other people
  • Crypto sold, transferred or spent in the lead-up to and after separation

Hiding crypto backfiresCourts take non-disclosure seriously. A party found to have hidden assets can face costs orders, an adjusted settlement, and a judge who no longer believes their evidence on anything else.

Signs Your Former Partner May Have Hidden Crypto

  • Bank transfers to exchanges such as CoinSpot, Swyftx, Independent Reserve, Kraken or Binance
  • Unexplained cash withdrawals, especially near crypto ATMs
  • A hardware wallet device such as a Ledger or Trezor
  • Notes with 12 or 24 random words, or words stamped on metal plates
  • Emails or app notifications from exchanges or wallet apps
  • Crypto gains or losses in tax returns
  • Spending or lifestyle that doesn't match declared income
  • A disclosed exchange account with a small balance but a long history of withdrawals

That last one is the most common pattern I see. The account that's disclosed is real, but its withdrawal history points to wallets that aren't.

How Hidden Crypto Is Found

It usually starts with paper. Bank statements show money going to exchanges. Australian exchanges are registered with AUSTRAC and must verify their customers' identity, so their records can be obtained by subpoena and show deposits, trades and withdrawals.

Withdrawals are where blockchain tracing takes over. Every withdrawal goes to a wallet address on a public blockchain. From there the coins can be followed hop by hop, and wallets controlled by the same person can be linked through clustering, for example when two wallets are spent together in one transaction. The result shows what was held, where, and when, with a transaction ID for every step that the other side can check.

Ask for the right recordsWhen subpoenaing an exchange, ask for the full transaction history including withdrawal addresses and transaction hashes, not just a balance statement. The addresses are what make tracing possible.

How Crypto Is Valued in a Property Settlement

Australian courts generally value the property pool at or close to the date of the final hearing or agreement, not the date of separation. For an asset as volatile as Bitcoin, that can change the pool by tens or hundreds of thousands of dollars between separation and settlement.

Historic values still matter. Where crypto was sold, spent or moved after separation, its value at those dates can be relevant, and in some circumstances the court can treat money that was wasted or deliberately moved as if it were still in the pool. Every valuation should record the price source, the exact time and the exchange rate used, so it can stand up to challenge.

Dividing Crypto: Transfer or Sell?

Crypto can be split by transferring coins to the other party ("in specie") or by selling and dividing cash. Transferring avoids arguments about the sale price and lets each party decide when to sell, but it needs both parties to be able to hold crypto safely. Selling gives certainty but crystallises the value on the day of sale.

Transfers made under a family law court order or binding financial agreement may qualify for capital gains tax rollover relief, which can change the tax outcome significantly. Get tax advice before agreeing to a split.

Time Limits

For married couples, property proceedings generally have to be started within 12 months of the divorce becoming final. For de facto couples, the limit is generally 2 years from separation. After that, the court's permission is needed. Hidden crypto discovered late can still matter, but don't wait.

When to Bring in a Crypto Expert Witness

An expert is worth it when the crypto is significant, when one party's disclosure doesn't add up, or when the two sides disagree about what was held or what it was worth. In family law matters the court often prefers a single expert that both parties instruct, which keeps costs down and avoids competing reports.

A crypto expert can trace undisclosed holdings, attribute wallets to a party, value holdings on the relevant dates, and explain it all in a report the court can rely on. See how to instruct me as an expert witness.

Common Questions

Is crypto included in a property settlement in Australia?

Yes. Cryptocurrency is property under the Family Law Act 1975 and forms part of the property pool, wherever and however it's held.

Can my ex hide crypto in a hardware wallet?

They can try. But crypto almost always passes through an exchange or bank at some point, and from there blockchain tracing can follow it to self-custody wallets and show what they hold.

What date is crypto valued at in a property settlement?

Generally at or close to the date of the final hearing or agreement, not the date of separation. Values at earlier dates can matter where crypto was sold, spent or moved.

Do I need a crypto expert witness?

Not always. If the crypto is small and both parties agree on it, a statement from the exchange may be enough. If holdings are significant, disputed or possibly hidden, an expert report is usually worth it.

About the Author

I'm Nicolas Turnbull, a blockchain forensics specialist and cryptocurrency expert witness. I've given expert evidence on crypto in the NZ High Court, the ACT Supreme Court, and Family Courts in Australia and New Zealand, and I trace crypto for scam victims, lawyers and courts. See my case work or how to instruct me as an expert.

This guide is general information, not legal or financial advice. For advice on your situation, speak to a lawyer.