The Challenge of Cryptocurrencies in Separations

The increasing prevalence of cryptocurrencies has introduced a new, complex variable into separation and divorce proceedings. If you suspect your spouse holds undeclared digital assets or are wondering how these assets should be divided, this is a legitimate and increasingly common concern. Understanding how to locate, value, and correctly divide Bitcoin, Ethereum, or other altcoin wallets has become a crucial aspect of ensuring a fair division of marital assets. As a divorce lawyer in Milan with extensive experience in managing complex estates, Avv. Marco Bianucci tackles these new challenges with a methodical and technologically informed approach.

The Regulatory Framework: Cryptocurrencies and Community Property

In Italy, there is not yet specific legislation governing the division of cryptocurrencies in the event of divorce. Therefore, the general principles governing legal community property, as provided by Article 177 of the Civil Code, apply. According to this regime, all acquisitions made by spouses during the marriage, even if separately, fall into the community property. Consequently, cryptocurrencies purchased with money from common income, such as salaries or professional earnings, are considered part of the assets to be divided 50/50, regardless of who is the formal owner of the wallet.

The real challenge, however, lies in the very nature of these assets. Their decentralization, potential pseudo-anonymity, and the difficulty in tracking blockchain transactions can be exploited to conceal part of the estate. Furthermore, their extreme volatility makes stable and agreed-upon economic valuation complex, a fundamental step for correct division. It is therefore essential to rely on a professional who knows how to navigate this evolving legal and technical landscape.

The Bianucci Law Firm's Approach to Dividing Digital Assets

The approach of Avv. Marco Bianucci, a divorce lawyer in Milan, is based on a strategy that combines legal expertise and technical support. We understand that locating hidden digital assets is the first and most critical step. For this reason, the firm collaborates with forensic IT consultants to analyze bank movements, electronic devices, and other evidence that may lead to exchange platforms or private wallets, always in full compliance with privacy regulations and legal procedures.

Once the assets are identified, our intervention focuses on two fronts. Firstly, evidential reconstruction: we gather all necessary evidence to demonstrate in court the existence, ownership, and value of the cryptocurrencies at the time of separation. Secondly, strategic negotiation: we aim to reach a fair agreement that takes into account the real value of these assets, proposing solutions such as liquidating a portion of the assets or offsetting them with other assets of equal value, in order to fully protect our client's rights.

Frequently Asked Questions

How can it be proven that a spouse owns cryptocurrencies?

Proof can be provided through various means. Bank statements showing transfers to exchange platforms (such as Coinbase, Binance, etc.), email or messaging communications, tax returns indicating gains from crypto-assets, or witness testimonies. In more complex cases, it is possible to request a court order for the disclosure of documents from exchanges or to use forensic IT expertise on computers and smartphones.

Do cryptocurrencies received as gifts or inheritance fall under the division?

No, as a general rule, personal assets do not fall under the community property. Cryptocurrencies acquired before the marriage or received as a gift or inheritance during the marriage are considered personal assets and, therefore, excluded from division. However, it is crucial to be able to demonstrate their origin with certainty to avoid them being confused with common assets.

How is the value of cryptocurrencies calculated for division?

Valuation is one of the most delicate aspects due to market volatility. Generally, reference is made to the value of cryptocurrencies at the time the judicial separation proceedings are initiated or, in case of agreement, to a date agreed upon by the parties. To establish the value, data from major exchanges are used, often crystallizing the price in Euros or another fiat currency at a specific moment.

What happens if a spouse sold cryptocurrencies before the separation?

If a spouse sells community property, including cryptocurrencies, without the consent of the other and shortly before separation, the other spouse may be entitled to request the reconstitution of the community property or, if not possible, reimbursement of the equivalent value. This is an action aimed at preventing one party from deliberately withholding assets from division, and it requires solid proof of fraudulent intent.

Contact Avv. Marco Bianucci for an Assessment of Your Case

Managing digital assets in a separation context requires not only a deep knowledge of family law but also an understanding of new financial technologies. If you are going through a divorce in Milan and suspect the presence of undeclared cryptocurrencies, it is essential to act with a clear and informed strategy. The Bianucci Law Firm offers targeted consultations to analyze your financial situation and define the most effective actions to protect your rights.

Contact the firm to schedule an initial consultation with Avv. Marco Bianucci. Together, we will assess the specifics of your case and outline the most appropriate legal path to ensure a fair and transparent division of assets, even in the complex world of digital assets.