Valuing cryptocurrency
Cryptocurrency is the term for digital assets that are created on computers by cryptography, and not reliant on centralised institutions such as banks or governments.
This webpage will help you understand:
- what is cryptocurrency
- how to value cryptocurrency, and
- how cryptocurrency is treated in family law.
What is cryptocurrency?
Cryptocurrency is the term for digital assets that are created on computers by cryptography, and not reliant on centralised institutions such as banks or governments. The common types of cryptocurrencies are Bitcoin, Ethereum, Monero, stablecoins, non-fungible tokens (NFTs) and others.
How does the ATO treat cryptocurrency?
In Australia it is legal to own and trade cryptocurrency. The Australian Taxation Office (ATO) classifies cryptocurrency as an asset. The sale or transfer of cryptocurrency attracts Capital Gains Tax (CGT) just like shares or real property.
How is cryptocurrency stored?
Cryptocurrency can be stored in a secure digital wallet. Wallets can be stored online or offline (known as cold wallets). Different platforms will have different storage options, and it is common to have small amounts of cryptocurrency across different platforms.
Keeping a thorough record of purchases, trades and transfer of cryptocurrency is the most reliable way of tracking how much cryptocurrency you own and where it is stored. It is also important to keep a record of passwords and encryption keys as it may be impossible to deal with the cryptocurrency without it.
Cryptocurrency in Family Law
How do you find out the value of cryptocurrency?
The law says you have to disclose the value of all assets you own during family law proceedings, including cryptocurrency. Valuing cryptocurrency can be trickier than traditional assets as the value can fluctuate drastically within days.
People generally have to agree on the value of cryptocurrency as at a certain date. This could be the date of the mediation, court hearing, date of purchase, date of separation or another date.
If the parties cannot agree on a value, they may need to hire an expert such as a forensic accountant to value the cryptocurrency, but keep in mind that the unpredictable nature of cryptocurrency can make it difficult to assign a fair market value.
What if my ex-partner does not disclose their cryptocurrency?
Unlike a physical asset, the decentralised and digital nature of cryptocurrency means some people may try to hide the asset. If you suspect this is the case, you need to obtain specific legal advice and potentially hire a forensic accountant specialising in digital assets to help find the hidden cryptocurrency.
A forensic accountant will analyse bank statements to identify unexplained deposits or withdrawals to unknown bank accounts, unidentified apps or websites or storage devices. Depending on what information is uncovered, they may be able to analyse, track and trace cryptocurrency on wallets or exchanges. They can then provide detailed reports and expert testimony for court if required.
How do you divide cryptocurrency in a property settlement?
Cryptocurrency can be retained as part of property settlement, or transferred, or sold. If you are considering transferring or selling some of your cryptocurrency, be aware of CGT implications. The ATO treats cryptocurrency as an asset that attracts tax when sold based on the difference in purchase price and the value at the time of sale or transfer.
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Reviewed: 14 May 2026