Cryptocurrency is treated as relationship property under the Property (Relationships) Act 1976 in New Zealand. This means Bitcoin, Ethereum, and all other digital assets acquired during a relationship must be disclosed and divided in separation proceedings. This guide covers what you need to know if you're going through a divorce or separation and either you or your partner holds cryptocurrency.

Cryptocurrency as Relationship Property

Under NZ law, cryptocurrency is legally treated the same as any other asset — whether it's a house, car, shares, or cash. If acquired during the relationship, it's relationship property and must be split equally (unless there's a contracting out agreement).

This includes:

  • Bitcoin, Ethereum, and all altcoins
  • NFTs (non-fungible tokens)
  • DeFi protocol holdings (staked tokens, liquidity pool positions)
  • Crypto held on exchanges or in personal wallets
  • Mining equipment and mined coins

Separate vs Relationship Property

Crypto acquired before the relationship started is generally separate property — but any increase in value during the relationship may be relationship property. If you held 1 BTC worth $10,000 before the relationship and it's now worth $150,000, the $140,000 gain is likely divisible.

Disclosure Requirements

Both parties are legally required to provide full and frank disclosure of all assets, including cryptocurrency. Failure to disclose can result in court orders requiring repayment, fines, or even criminal charges for perjury.

What you must disclose:

  • All exchange accounts (Easy Crypto, Binance, Coinbase, etc.)
  • Personal wallet addresses and balances
  • Hardware wallet holdings
  • DeFi positions
  • NFT collections
  • Historical transaction records

How Hidden Crypto Gets Discovered

Many people believe cryptocurrency is "anonymous" and try to conceal it during divorce proceedings. This is a serious mistake. Blockchain forensics can trace transactions, link wallets, and uncover hidden holdings.

Common Discovery Methods

  • Exchange records: Subpoenas to NZ and international exchanges reveal deposit/withdrawal history
  • Bank statements: Transfers to crypto exchanges are easily identifiable
  • Tax returns: IRD records of crypto gains or reported holdings
  • Blockchain analysis: Expert witnesses can trace wallet-to-wallet transfers, mixer usage, and DeFi movements
  • Social media & digital footprint: Posts, NFT profile pictures, forum activity can reveal holdings

Case example: In a 2024 Auckland Family Court case, a husband claimed to have "lost" $400,000 in Bitcoin. Blockchain forensics revealed the funds had been moved to a new wallet just days before separation. The court ordered him to pay his ex-partner $200,000 plus legal costs.

Valuing Cryptocurrency for Division

Cryptocurrency prices fluctuate constantly. NZ courts typically use the valuation date as either:

  • The date of separation
  • The date of final settlement
  • An agreed date between parties

If one party wants to keep the crypto and the other wants cash, the crypto holder may need to buy out the other party's share at the agreed valuation.

Dealing with Volatility

If Bitcoin was worth $80,000 at separation but $120,000 at settlement, who gets the gain? This is negotiable, but courts generally favour the separation date valuation to avoid disputes over market movements during proceedings.

When to Engage an Expert Witness

You should consider hiring a cryptocurrency expert witness if:

  • Your partner claims to have "lost" or "forgotten" crypto holdings
  • Significant amounts are involved (over $50,000)
  • Crypto was moved or hidden shortly before or during separation
  • Complex DeFi or NFT holdings need valuation
  • You suspect offshore exchanges or mixer usage

An expert witness can provide the Family Court with detailed forensic reports showing transaction history, wallet linkages, and asset valuations.

I have provided expert witness testimony in NZ Family Court, High Court, and District Court cases involving cryptocurrency asset division. Contact me for a confidential discussion.

Protecting Your Interests

  • Document everything early: Take screenshots of exchange balances, wallet holdings, and transaction history at the time of separation
  • Get independent legal advice: A family lawyer experienced in crypto matters is essential
  • Don't hide assets: The risks far outweigh any perceived benefit. Courts treat concealment very seriously.
  • Consider contracting out agreements: If you're entering a relationship with significant crypto, a prenup (contracting out agreement) can protect separate property

For legal advice on your specific situation, consult a family lawyer. For blockchain forensics, expert witness reports, or crypto asset tracing, I'm here to help.