Cryptocurrency and digital assets have become mainstream in Australia, but they have also created new challenges in family law. During a separation, assets such as Bitcoin, Ethereum, NFTs, online trading accounts and even in-game digital items may form part of the property pool.
In NSW, the Federal Circuit and Family Court of Australia (FCFCOA) treats these assets the same way it treats bank accounts, shares or investment property: they must be disclosed, valued and divided fairly.
This guide explains how digital assets are handled in NSW property settlements, what disclosure is required, how crypto can be traced, and what parties need to know about Capital Gains Tax (CGT) implications.
For legal guidance tailored to your situation, learn more about our Family Law services.
Digital assets can include a range of online and blockchain-based property. In a family law context, commonly relevant assets include:
If the asset has value and can be owned, transferred or sold, the Court is likely to treat it as property under the Family Law Act 1975.
Yes. All digital assets owned by either party individually or jointly form part of the property pool for a property settlement.
This includes assets:
The Court must consider the “net property pool”, and digital assets can materially affect the total value, especially if one party has substantial cryptocurrency holdings or active trading accounts.
In NSW family law matters, full and frank financial disclosure is mandatory. This includes all digital assets, regardless of their perceived value or volatility.
Parties must disclose:
Can Crypto Be Hidden? Yes. But It Can Be Traced.
Some people believe crypto is untraceable. In reality, Australian law firms and forensic accountants commonly trace digital transactions through:
The Court may order disclosure from crypto exchanges or financial institutions if there is evidence a party is hiding assets.
Once disclosed, the next step is valuation. Cryptocurrency values fluctuate significantly, so valuation is often done:
Valuation usually requires:
For active traders, unrealised gains or losses may also be relevant to the overall settlement strategy.
CGT and Crypto During Separation
Cryptocurrency is treated as a CGT asset in Australia. When crypto is sold, gifted, transferred or exchanged, a CGT event occurs.
In family law, CGT matters in two ways:
Under family law rollover relief, when an asset is transferred between spouses under a court order or financial agreement, CGT is deferred. The receiving party inherits the original cost base.
If a party sells crypto to fund a settlement payment, this may trigger CGT.
For example:
The Court may account for this tax liability when determining a just and equitable division of assets.
The Court may treat crypto losses similarly to other financial losses. Depending on the circumstances, losses may be considered:
Examples of reckless behaviour:
The outcome depends on intent, transparency and the nature of the relationship at the time of the loss.
Practical Tips for Anyone Separating With Crypto or Digital Assets
This includes wallet IDs, exchange statements, and tax reports.
You may create tax implications or raise suspicion.
Update passwords, enable 2FA and ensure security of wallets.
Crypto values can change quickly, so time negotiations carefully.
Digital-asset property settlements are complex and require strategic handling.
For advice specific to your circumstances, see our Family Law team.
Maatouks Law Firm has extensive experience assisting clients with complex financial and digital-asset property settlements across NSW. Our team understands the legal, tax and technical issues surrounding cryptocurrencies and emerging digital assets.
Whether you’re concerned about hidden crypto, need help valuing digital holdings, or want a fair settlement that reflects both contributions and risk, we can guide you through every step.