By Julius Ewudo, ASEAN Region Representative
The collision of Australia’s separation rates with the cryptocurrency boom has created additional complexities to asset division in family courts. While divorce rates have moderated from their pandemic peak of 56,244 cases in 2021 to approximately 48,700 in 2023, digital assets are becoming increasingly prominent in property settlements. The ASX 2023 Australian Investor Study reveals that one-third of high-value investors now hold cryptocurrency portfolios, with median holdings of $130,000 AUD.
As Bitcoin touches new heights of $150,000 AUD, cryptocurrency is becoming an increasingly large portion of high-net-worth portfolios. For family law practitioners, this trend suggests that cryptocurrencies will play an increasingly prominent role in family law property settlements. When handling family settlements involving cryptocurrency, family lawyers are forced to confront new complex challenges in asset division and disclosure. Recognising the need for specialised guidance, Nicholes Family Lawyers has partnered with Elbaite to help clients manage digital wealth during family law settlements.
Nicholes Family Lawyers Partner Catherine Giles said: “Digital assets are adding new dimensions to family law property settlements. The Courts treat crypto like any other property, meaning it must be disclosed, valued, and factored into any family law property settlement where it is present.”
To navigate these complexities, collaboration with local cryptocurrency experts like Elbaite ensures accurate identification and valuation of digital assets, tailored to Australian regulations.
The High-Stakes Challenge of Valuing Crypto Assets
The volatile nature of cryptocurrency also presents unique challenges for courts and divorcing couples alike. With Ms Giles stating: “Crypto’s volatility introduces a significant complication in family law proceedings. Courts may decide ownership and value based on the market price at the time of the settlement or at the time of the Final Hearing, but dramatic changes in value can impact the asset pool or have unintended consequences for a party who retains the crypto as part of their settlement. For instance, Bitcoin’s value surged past $93,000 USD (~$144,000 AUD) earlier this month but continues to fluctuate, raising concerns about achieving a fair and equitable settlement for both parties if the value of that asset were to rise or fall significantly.”
“Nicholes Family Lawyers’ collaboration with Elbaite helps when tracking the value of clients’ digital assets with precision, making it easier for parties involved in family law property proceedings to provide full and frank financial disclosure, manage the risk in the volatility of the value of cryptocurrency and otherwise assist in the division or transfer of the cryptocurrency if required in the settlement.”
“Crypto can appreciate or depreciate rapidly, which makes it essential to use real-time exchange data when attributed a value to the crypto asset.”
When dealing with high-value digital assets, careful management is crucial to preserve wealth during liquidation. “Selling large amounts of cryptocurrency on the open market can lead to significant price slippage, potentially causing families to lose substantial value during settlement. Our team at Elbaite regularly handle high-value transactions and leverage our expertise to ensure minimal market impact, protecting our clients’ interests.” said Chief Technology Officer Samira Tollo,.
Family Law Settlements with Crypto: Navigating Complex Property Division
Dividing cryptocurrency assets also presents unique challenges like determining ownership, custody, and control over private keys. Courts must assess who purchased the crypto, who controls the wallet, and whether the assets are jointly or individually owned. Nicholes Family Lawyers frequently advises clients in navigating property settlements involving cryptocurrency assets, and ensures their clients receive expert cryptocurrency support throughout the entire process.
For this reason, Elbaite plays a critical role in family law matters through its custody solution, Crypto Vaults, which provide security for crypto assets before, during and following property settlements.
“Imagine trying to split ten million dollars in Bitcoin between divorcing spouses – a neutral, secure intermediary is important for smooth proceedings.” Tollo said. “Our custody solution acts as a digital escrow, much like putting the assets in a high-security bank vault where neither party can access them until the court gives the green light. When dealing with volatile digital assets during an already stressful time, this peace of mind is invaluable.”
Elbaite’s Crypto Vaults ensure Family Settlements can proceed through:
– Splitting the crypto between parties
– Selling the assets and distributing the proceeds
– Returning crypto to private wallets after final settlement
By collaborating with Nicholes Family Lawyers, Elbaite ensures transparency and compliance, making it easier for couples to manage digital wealth following separation and divorce.
Forensic Investigations to Track Hidden Crypto Assets
A growing concern in crypto-related family law settlements is asset concealment. “In some cases, one spouse may try to hide digital assets,” said Catherine Giles. “Using advanced tracking methods and by working with platforms like Elbaite, we ensure all crypto holdings are identified and included in the asset pool.”
Australian Courts require full disclosure of all assets, including digital assets. Nicholes Family Lawyers has developed expertise in uncovering hidden crypto through forensic investigations, sometimes working with Elbaite and crypto tax specialists and forensic accountants.
The issue has gained attention following a recent US case in 2023 where 12 Bitcoin (~AU$1.65m) was hidden from a spouse and later uncovered through forensic investigation. This highlights the importance of specialised expertise in tracking digital assets during separation proceedings.
Preparing for the Future of Family Law and Crypto
As crypto continues to gain traction, the legal landscape will evolve to accommodate it. Financial Agreements entered into prior to de facto relationships or marriage are now increasingly including cryptocurrency to ensure asset preservation, identification and inclusion from the outset.
Elbaite and Nicholes Family Lawyers are pioneering solutions that help couples manage crypto wealth fairly and transparently.
Streamline Property Buyers Awarded “Buyers Agency of the Year,” Cementing Its Position as a Market Leader in Brisbane Real Estate
Streamline Property Buyers Named “Buyers Agency of the Year” for Second Year Running; Melinda Jennison Wins “Buyers Agent of the Year” for Third Consecutive Time
Streamline Property Buyers has cemented its place as a leader in Brisbane real estate, winning
Buyers Agency of the Year for the second consecutive year at the REIQ Awards for Excellence 2024. Adding to this achievement, Managing Director Melinda Jennison was named Buyers Agent of the Year for the third year in a row, making her the most awarded buyers agent in Brisbane.
These accolades highlight Streamline Property Buyers’ dedication to delivering exceptional results for both property investors and home buyers. Their client-first approach ensures that property acquisitions are seamless, supported by insights and education that empower clients throughout the process.
“It’s an incredible honour to be recognised again at the REIQ Awards,” said Melinda Jennison. “These awards are a reflection of the passion and dedication of our entire team. At Streamline, we’re driven by the outcomes we achieve for our clients. Whether we’re working with property investors or home buyers, our focus is always on delivering secure, financially sound property solutions that align with our clients’ goals.”
Jennison continued, “Our success comes from putting our clients at the centre of everything we do. We are passionate about providing a personalised experience that combines market expertise with education and support, ensuring every client feels confident and well-informed throughout their property journey. It’s great to be recognised for this commitment.”
Recent client, Teleah, shares her experience: “We had an outstanding experience with Streamline Property Buyers. Their team was professional, knowledgeable, and incredibly helpful throughout the entire process of purchasing our investment property. They took the time to understand our needs and preferences, making the experience smooth and stress-free. We were impressed by their transparency and dedication to finding the perfect property for us. We highly recommend them.”
As Brisbane’s property market continues to evolve, Streamline Property Buyers remains committed to setting the highest standards for client service and delivering exceptional outcomes for property investors and home buyers alike.
Streamline Property Buyers
Streamline Property Buyers is Brisbane’s trusted buyers advocacy agency, owned and operated by Melinda and Scott Jennison. Dedicated to empowering clients through informed property purchases, Streamline is a local expert in the Brisbane property market, specialising in delivering a seamless, stress-free buying experience for Brisbane home buyers and investors backed by a thorough understanding of the area and a results-driven approach.
Streamline’s mission is to help clients build wealth through strategic property investment, enabling them to make confident, informed decisions for their future. The team combines extensive expertise in negotiation, auction bidding, property investment strategy, and complex contract management. Committed to advocating for buyers’ best interests, Streamline tailors every aspect of the property journey to align with clients’ unique financial aspirations.
Melinda Jennison Streamline Property Buyers Managing Director
Melinda has assisted hundreds of investors in strategically making their move in property. With a wealth of experience in Brisbane’s property market, she is the honest, unbiased guiding voice that can empower your property decisions.
Melinda has completed a PhD and is a Qualified Property Investment Advisor. Melinda has won the RIEQ.
Buyers Agent of the Year Award in 2022 and 2023 and is also the President of the Real Estate Buyers Agent Association of Australia, where she demonstrates her extensive knowledge, unwavering dedication, and commitment to excellence.
