How to Disclose Cryptocurrency Assets in Divorce Without Giving Away Access

Disclosure vs. Control

When going through a divorce in Indiana, both spouses are generally required to provide a full and honest accounting of their assets. This includes not only obvious items like homes, vehicles, and retirement accounts but also purely digital assets such as cryptocurrency.

Many people who hold crypto in cold storage (on a hardware wallet, paper wallet, or another offline method) worry that disclosure means they must hand over the device, private keys, or full control of their funds. That’s not the case.

The law requires you to disclose ownership and value of your crypto, but you can do so without exposing sensitive information that would allow someone to move or spend it. The key is providing sufficient documentation and proof that the assets exist and belong to you.

What to Provide in a Proper Disclosure

When listing cryptocurrency in your Indiana divorce disclosure, here’s what should typically be included:

1. Type of Cryptocurrency
   • Identify what kind of crypto you hold: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), or another token.
2. Amount Held on a Specific Date
   • State the Date for the Disclosure (i.e., “As of the Date of Separation, January 1, 2026”)
   • State the exact amount you own, down to the decimal if possible.
   • Example: “3.25 BTC” or “18.6 ETH.”
3. Method of Storage
   • Note whether the asset is on an exchange (like Coinbase or Kraken), a hardware wallet (Ledger, Trezor), or another form of cold storage.
4. Value on the Same Specific Date
   • Because crypto prices fluctuate rapidly, specify a date and the market price used.
   • Example: “As of January 1, 2026, 3.25 BTC valued at $230,000 (based on CoinMarketCap daily average).”
5. Proof of Ownership
   • Provide documentation that demonstrates the holdings without giving away security details. This might include:
     • Screenshots of the wallet balance.
     • A copy of the public wallet address so balances can be checked on the blockchain.
     • A notarized affidavit affirming that you control the wallet and its assets.

Practical Example of Disclosure in Action

Consider this scenario:

John and Jane are divorcing in Indiana. John owns 2 Bitcoin (BTC), which he keeps on a Trezor hardware wallet.

• On his financial disclosure form, John lists:
  • Asset: “2 Bitcoin (BTC)” as of May 15, 2025.
  • Storage: “Trezor hardware wallet, serial ending 1452”
  • Value: “$138,000 as of May 15, 2025 (based on exchange rate of $69,000/BTC).”
• To back this up, John provides:
  • A screenshot from his Trezor interface showing the 2 BTC balance.
  • The public wallet address linked to those funds, so the balance can be independently verified on the blockchain.

Notice what John does not do: he does not hand over his Trezor device, nor does he share his private key. Instead, he provides enough information to prove the existence, value, and legitimacy of the asset while maintaining the security of his holdings. If division becomes necessary later, the court can order a transfer or offset with other assets.

Why This Approach Matters

• Protects Your Security
  • Keeping your private keys confidential ensures that no one can move or steal your assets during the divorce.
• Meets Legal Requirements
  • Indiana courts take nondisclosure seriously. If you fail to disclose assets, the court may impose penalties or award your spouse a larger share of the marital estate.
• Facilitates Fair Division
  • With proper disclosure, the court and both parties can assess the value of cryptocurrency alongside other marital assets, ensuring a fair outcome.
• Minimizes Conflict
  • When disclosure is thorough and supported with documentation, it reduces suspicion and the need for costly forensic investigations into hidden assets.

Practical Tips for Crypto Holders in Divorce

• Document Early: Gather wallet screenshots, public addresses, and valuation data before you begin formal proceedings.
• Work With Experts: A forensic accountant or crypto-knowledgeable lawyer can help ensure proper handling.
• Don’t Conceal: Attempting to hide crypto assets almost always backfires in divorce litigation.
• Think About Division: Decide whether assets should be transferred, sold and divided, or offset with other property.

Final Takeaway

Divorce already carries emotional and financial challenges, and adding cryptocurrency into the mix can make things even more complicated. The good news is that disclosing crypto doesn’t mean giving up control of your private keys. It simply means being transparent about what you own, where it is, and what it’s worth.

By approaching disclosure the right way, you protect your security, comply with the law, and set the stage for a fair resolution.

If you own cryptocurrency and are facing a divorce in Indiana, it’s important to get legal guidance on how to disclose and divide those assets correctly.

Contact Harshman Ponist Smith & Rayl, LLC today. We understand the complexities of modern assets like cryptocurrency and can help protect your interests during divorce.