Reliable Cryptocurrency & Digital Asset Division Attorney in Los Angeles, CA
California community property division cases often include cryptocurrency investments and other digital assets. When divorce settlements involve digital assets such as those found on decentralized exchanges, in private wallets, or as volatile digital currencies and blockchain investments, a Los Angeles cryptocurrency & digital asset division lawyer can be instrumental in assisting couples with the division process.
The Los Angeles family law attorneys at Kramer & Zitser, LLP concentrate its practice on complex family law and digital asset division cases. The founding attorneys, Brian J. Kramer and Diana P. Zitser, are a combination of two Senior attorneys with over 50 years of collective experience assisting families. Our boutique firm practices are limited to complex marital estates that contain significant investments, closely held businesses, and contested assets.
We believe in negotiated resolutions conducted privately whenever possible and advised by knowledgeable financial analysis. We can litigate contentious property division disputes if necessary.
How Cryptocurrency Is Divided in California
Cryptocurrency is considered property and may be divided during divorce. Digital assets may be classified as community or separate property depending on when they were acquired. Cryptocurrency acquired with community funds during marriage is presumed to belong to the community even if the investment is registered in only one spouse’s name.
California courts divide community property in equal shares unless there is a good reason not to do so. If cryptocurrency was owned prior to marriage, it may qualify as separate property. Gifts and inheritances are also excluded from community property division if kept separate.
Types of Digital Assets Commonly Divided
Cryptocurrency investments include a range of digital assets beyond Bitcoin and Ethereum. Crypto couples may own any combination of the following digital investments. Popular types include:
- Cryptocurrencies. Bitcoin, Ethereum, Litecoin, or other currency tokens purchased on an exchange or wallet.
- Non-fungible tokens (NFTs). NFTs may represent unique digital collectibles or tokenized interests in other assets. Market demand and the rights granted by smart contracts determine their worth.
- Decentralized finance. Crypto may also be deposited into lending platforms, liquidity protocols, or used for staking.
- Digital business interests. Some businesses are associated with cryptocurrency trading. These could include token allocations, business holdings, and certain digital rights that can be sold or exchanged.
It is important to remember that not all cryptocurrency accounts or licenses can be sold. Restrictions on transferability could affect certain types of digital assets.
Finding Hidden Crypto Wallets During Divorce
Tracing cryptocurrency starts with locating hidden wallets that may not be disclosed on bank statements or financial affidavits. Every cryptocurrency transaction is publicly recorded on its respective blockchain. However, blockchain addresses cannot be readily tied to specific owners.
The situation is further complicated by the fact that decentralized crypto exchanges lack custodial wallets. A couple’s assets may also be stored in inaccessible wallets only one spouse knows about. However, according to California law, spouses must exchange financial disclosures. Crypto-related accounts should be listed on financial disclosures, including assets you intend to claim as separate property.
If you believe your spouse is hiding crypto wallets, your attorney may work with forensic professionals to find them. Proof of transfer between digital wallets may be used to track down hidden accounts.
Cryptocurrency Statistics
Total cryptocurrency market caps continue to rise as digital currencies gain mainstream adoption. The Chainalysis 20th Geography of Cryptocurrency Report showed North America received $2.3 trillion in transaction proceeds from July 2024 to June 2025. This amounted to about 26% of global crypto transactions during those twelve months. During December 2024 alone, roughly $244 billion was received in cryptocurrency transactions.
This data represents crypto transactions worldwide, not divorce proceedings. However, it does provide context for how much money changes hands in cryptocurrency transactions.
Hire a Cryptocurrency & Digital Asset Division Lawyer
You should hire a cryptocurrency & digital asset division lawyer if you or your spouse own substantial cryptocurrency assets or if you believe the financial disclosures in your divorce are incomplete. Your Los Angeles cryptocurrency & digital asset division attorney can subpoena financial records, work with forensic blockchain analysts, and determine if cryptocurrency assets are community property.
Should you go to court, your attorney can introduce evidence of transactions and contest speculative asset valuations.
The Stanley Mosk Courthouse, 111 North Hill Street, Los Angeles, CA 90012, is a family law courthouse located near Grand Park and with access to US-101, which serves Downtown LA. Your case could be located here depending on the circumstances of your situation.
FAQs
What Happens If One Spouse Loses Access to a Cryptocurrency Wallet During Divorce?
If a spouse loses access to a cryptocurrency wallet that is supposed to be divided during divorce, it can create significant challenges. If one spouse lost or deleted cryptocurrency in order to hide assets, there could be other ramifications from the court. If it was an unintentional loss, the courts may require documentation to make sure the cryptocurrency is truly inaccessible.
Does My Spouse Have to Reimburse the Marital Estate for Cryptocurrency Losses?
Your spouse does not necessarily have to reimburse the marital estate for any losses incurred while trading cryptocurrency. Courts in California have looked at losses and considered whether they were incurred during the course of managing investments, were the result of reckless financial management, or were a violation of fiduciary duties to the community.
Does Transferring Cryptocurrency to a Family Member Before Divorce Protect It From Division?
Transferring cryptocurrency to a brother, sister, friend, or anyone else does not necessarily take it out of community property. Just like fraudulent bank account transfers, cryptocurrency transactions can be investigated by California courts if they were done with the intent to hide assets or diminish community property.
If a court determines that a fraudulent transfer occurred, the offending spouse could be required to reimburse the marital estate and be subject to other penalties under California’s cryptocurrency laws.
Can Cryptocurrency Be Used to Pay Child Support or Spousal Support in California?
Generally, cryptocurrency cannot be used to pay child support or spousal support in California. Courts can look at cryptocurrency holdings when determining a spouse’s overall ability to pay support. However, support is normally ordered in terms of dollar amounts, and payor spouses are typically required to pay through approved channels instead of cryptocurrency.
Schedule Your Consultation With Kramer & Zitser, LLP
If you are going through a divorce in Los Angeles that involves cryptocurrency and/or other digital assets, Kramer & Zitser, LLP can advocate for a fair division of assets. Contact us today to schedule your consultation.
