Cryptocurrency and Divorce

Governments and central banks don’t control cryptocurrencies. While functioning as a kind of payment, cryptocurrencies are totally digital and lack a central bank or storage location. Some cryptocurrencies are used for international money transfers, while others are used to purchase goods and services. They rely on cryptographic information contained in a digital wallet application. A blockchain is created by the code, which resembles a bank’s ledger.

The blockchain is an open public ledger that logs all transactions and is updated every 10 minutes approximately. It is comprised of two codes, each of which is known as a key. The public key is accessible to everyone, but the private key is kept secret. Private keys are kept in a wallet. Both keys are required to purchase goods or services.

In view of the surge in the value of cryptocurrencies, these investments have taken on a greater significance in divorce procedures. In England and Wales, cryptocurrencies are now considered “property”. This implies they can be transferred between parties in divorce proceedings through a property adjustment order pursuant to section 24 of the Matrimonial Causes Act of 1973.

Considering their volatility and proclivity to change in value, it is imperative that current values be utilised in discussions and hearings.