Crypto and Other Digital Assets
Most people going through a divorce know they need to disclose bank accounts, retirement accounts, real estate, and investment portfolios. What many people do not realize is that cryptocurrency and other digital assets are treated just like any other form of property in a New Hampshire divorce.
That can create challenges because digital assets are often harder to identify, harder to value, and sometimes easier to conceal than traditional assets. Unlike a checking account at a local bank, cryptocurrency may exist in a digital wallet that only one spouse knows about. The asset may be spread across multiple exchanges, held in cold storage, or invested in newer forms of digital assets that many people have never heard of.
As cryptocurrency has become more mainstream, it has also become a more common issue in New Hampshire divorce cases. Some spouses actively trade Bitcoin, Ethereum, or other cryptocurrencies. Others may have acquired digital assets years ago and largely forgotten about them until the divorce begins. In either situation, identifying, valuing, and dividing those assets can become a significant issue.
The volatility of cryptocurrency adds another layer of complexity. A portfolio worth $100,000 today may be worth substantially more or less several months later. That creates practical and legal questions about valuation dates, division methods, and risk allocation between the parties.
Understanding how New Hampshire courts approach these assets can help parties avoid costly mistakes and ensure that all marital property is properly accounted for.
New Hampshire Law Governing Cryptocurrency and Digital Assets
Under RSA 458:16-a, New Hampshire follows the doctrine of equitable distribution. The statute begins with the presumption that an equal division of marital property is equitable unless the court determines that a different division is appropriate based upon the statutory factors.
One of the most important principles under RSA 458:16-a is that New Hampshire takes a very broad view of what constitutes marital property. The focus is not on the type of asset involved. Rather, the court looks at whether the asset was acquired during the marriage and whether it forms part of the overall marital estate.
Cryptocurrency is property. Bitcoin is property. Ethereum is property. Digital tokens, stablecoins, NFTs, and other digital assets are also forms of property. The fact that the asset exists electronically rather than in a traditional financial account does not remove it from the marital estate.
This principle is consistent with the broader approach New Hampshire courts take toward equitable distribution. The court’s goal is to identify all marital assets, determine their value, and divide them in a manner that is fair under the circumstances.
As with any other asset, full financial disclosure is required. Parties are obligated to disclose assets completely and accurately during the divorce process. Failure to do so can have significant consequences, both legally and practically.
Why Cryptocurrency Creates Unique Challenges
Traditional financial assets leave a fairly obvious paper trail. Bank accounts generate statements. Brokerage accounts produce monthly reports. Real estate ownership is reflected in public records.
Cryptocurrency often operates differently.
A spouse may hold cryptocurrency through Coinbase, Kraken, Binance, Gemini, Robinhood, Fidelity Digital Assets, or any number of other exchanges. The assets may also be transferred off an exchange entirely and stored in a private digital wallet.
Some individuals maintain assets on hardware wallets that resemble USB drives. Others use software wallets stored on computers or mobile devices. Still others maintain assets across multiple platforms simultaneously.
The result is that cryptocurrency can be more difficult to identify than traditional assets.
Difficulty identifying an asset does not make it undiscoverable. It simply means that the discovery process often requires more careful investigation.
How We Prove Cryptocurrency Exists
In many cases, the existence of cryptocurrency is obvious.
One spouse may openly discuss cryptocurrency investing. Tax returns may reflect gains or losses. Bank statements may show transfers to well-known cryptocurrency exchanges.
Other cases are less straightforward.
Sometimes the first clue comes from ordinary financial records. A bank statement may reflect recurring transfers to Coinbase or Kraken. Credit card statements may show purchases tied to cryptocurrency exchanges. Tax returns may contain forms reflecting cryptocurrency transactions.
The discovery process becomes critically important.
Under Rules 26 through 37 of the New Hampshire Rules of Civil Procedure, parties have access to a wide range of discovery tools. Interrogatories can require a spouse to identify all digital assets and cryptocurrency holdings. Requests for production can seek account statements, wallet information, transaction histories, and exchange records.
Depositions can be particularly useful in cryptocurrency cases because they allow attorneys to explore explanations in real time. A spouse who claims not to own cryptocurrency may later be confronted with records showing substantial transfers to digital exchanges.
Subpoenas may also become necessary. Cryptocurrency exchanges often maintain records that can help establish ownership, balances, and transaction history.
The Growing Role of Forensic Accountants and Digital Asset Experts
Cryptocurrency cases frequently involve forensic accountants.
A forensic accountant is not simply reviewing bank statements. They are tracing transactions, identifying transfers, reconciling records, and looking for inconsistencies that may indicate undisclosed assets.
This process often begins with traditional financial records.
For example, a forensic accountant may identify a $50,000 transfer leaving a marital checking account. If there is no corresponding deposit into another disclosed account, that transaction naturally raises questions.
Where did the money go?
If records ultimately show the funds were transferred to a cryptocurrency exchange, the investigation may continue from there.
Today, forensic accountants increasingly use specialized software and artificial intelligence tools to identify transaction patterns and anomalies. AI-assisted review can help identify unexplained transfers, recurring cryptocurrency purchases, and financial inconsistencies that may otherwise be missed.
In significant cases, blockchain analysis specialists may also become involved.
Unlike traditional banking systems, many cryptocurrency transactions are permanently recorded on public blockchains. While the identity of the owner may not always be immediately obvious, the transaction history itself is often publicly visible and traceable.
Valuing Cryptocurrency in a New Hampshire Divorce
Identifying cryptocurrency is only the first challenge.
The next question is valuation.
Cryptocurrency is notoriously volatile. Anyone who has followed Bitcoin over the last decade understands that substantial price swings can occur over relatively short periods of time.
That creates an important practical question.
What date should be used to determine value?
New Hampshire courts possess broad discretion regarding valuation issues under RSA 458:16-a. Different valuation dates may be appropriate depending upon the circumstances of the case.
Suppose a spouse owns 10 Bitcoin.
The value may be dramatically different:
- On the date of separation
- On the date the divorce petition was filed
- On the date of mediation
- On the date of trial
- On the date the final decree is issued
The choice of valuation date can significantly affect the ultimate division.
Dividing Cryptocurrency After Valuation
Once cryptocurrency has been identified and valued, the court must determine how to divide it.
One approach is direct division.
If the parties own 10 Bitcoin and the court determines the marital estate should be divided equally, each spouse could receive 5 Bitcoin.
This approach sounds simple but is not always practical.
Not every spouse wants to own cryptocurrency after the divorce. Some may prefer cash or more traditional assets. Others may be uncomfortable with the volatility associated with digital assets.
As a result, courts and parties frequently use offsetting assets.
For example, one spouse may retain the cryptocurrency while the other receives a larger share of retirement assets, brokerage accounts, or home equity.
This approach often simplifies administration and reduces future disputes.
A Fictional New Hampshire Example
Imagine a fictional New Hampshire divorce involving Mark and Jennifer.
Mark works in technology and has been investing in cryptocurrency since 2017. During the marriage, he regularly purchased Bitcoin and Ethereum through multiple exchanges.
Jennifer knows Mark owns some cryptocurrency but has no idea how much.
During discovery, bank records reveal hundreds of thousands of dollars in transfers to cryptocurrency exchanges over several years. Tax returns show cryptocurrency gains, but the reported balances appear inconsistent with the known purchases.
A forensic accountant is retained.
The accountant traces transfers from multiple bank accounts, identifies cryptocurrency exchange activity, and discovers several digital wallets that were not initially disclosed.
At trial, expert testimony establishes the existence and approximate value of the assets.
The court ultimately determines that the cryptocurrency is marital property under RSA 458:16-a and includes it in the overall equitable distribution analysis. Because Jennifer has no interest in maintaining cryptocurrency investments after the divorce, Mark retains the digital assets while Jennifer receives a larger share of retirement accounts and home equity.
The result allows both parties to move forward without requiring ongoing management of shared digital assets.
Frequently Asked Questions
Is cryptocurrency considered marital property in New Hampshire?
Generally, yes. Cryptocurrency acquired during the marriage is typically treated as marital property subject to equitable distribution under RSA 458:16-a.
Can a spouse hide cryptocurrency during a divorce?
Some people try, but cryptocurrency transactions often leave financial and digital trails. Discovery, subpoenas, forensic accountants, and blockchain analysis can frequently uncover undisclosed assets.
How do you prove cryptocurrency exists?
Evidence often comes from bank records, exchange statements, tax returns, wallet information, subpoenas, and forensic accounting analysis.
What if my spouse transferred cryptocurrency before filing for divorce?
Those transfers can be investigated and may become an important issue in the property division analysis, particularly if the transfer appears intended to conceal marital assets.
How is cryptocurrency valued?
Valuation depends on the circumstances of the case and the valuation date selected by the court. Market prices and expert testimony are often used.
Can cryptocurrency be divided directly?
Yes. In some cases, the cryptocurrency itself can be divided between the parties.
What if one spouse wants the cryptocurrency and the other does not?
The court may offset the value using other marital assets rather than requiring both parties to retain cryptocurrency.
Are NFTs treated differently?
Generally, no. NFTs are another form of digital property that may be subject to equitable distribution.
Do I need a forensic accountant?
Not in every case, but forensic accountants are frequently helpful when significant cryptocurrency holdings exist or when there are concerns about incomplete disclosure.
Can AI help identify hidden cryptocurrency?
Increasingly, yes. AI-assisted financial analysis is becoming a useful tool for identifying transaction patterns, unexplained transfers, and inconsistencies that may warrant further investigation.
Final Thoughts
Cryptocurrency and digital assets represent one of the fastest-growing areas of financial complexity in modern divorce litigation. While the technology may be relatively new, the legal principles governing property division in New Hampshire remain largely the same. The court’s objective is to identify all marital assets, determine their value, and divide them fairly under RSA 458:16-a.
The challenge is that cryptocurrency often requires more investigation than traditional assets. Discovery tools, forensic accountants, blockchain analysis, and increasingly sophisticated AI-assisted review techniques are becoming important parts of the process. When concerns arise regarding undisclosed digital assets, these tools can help uncover the truth.
Just as importantly, valuation and division require careful planning. Cryptocurrency’s volatility means that timing matters, and the method of division can have long-term financial consequences for both parties. Understanding how these assets are identified, valued, and divided places parties in a far better position to navigate what is often one of the most complicated aspects of modern New Hampshire divorce litigation.
About the Author: Damian Turco is the Founder and Managing Partner of Turco Legal and has practiced divorce and family law since 2008.Damian Turco’s Bio Page | More Blogs from Damian Turco
This article is for informational purposes only and should not be interpreted as legal advice. Articles on our blog are written at a historical point in time and the information presented accurately reflects the law at the time of the article’s writing. If you’d like to better understand how the law applies to your case, schedule an attorney consultation by calling any of our offices or by clicking the Schedule a Consultation link on this page.