The Legal Light Justin Stack Cryptocurrency new battleground in divorce settlements More and more people have digital assets such as cryptocurrency that can be worth a fortune, but it isn't mentioned in the Family Law Act and is increasingly becoming the battleground in family law property settlements. Ashleigh Flanagan, family lawyer at Stacks Law Firm, says even though Bitcoin, Ethereum and other digital assets are not specifically mentioned in legislation, they are considered to be "property" and are subject to the laws covering the division of property in family law matters, in the same way as a house, car, investments or money. "Family lawyers are increasingly seeing disputes over hidden cryptocurrency and frequent flyer points in property fights between separating couples," Ms Flanagan said. Even though cryptocurrencies exist only on computers, they can be exchanged for goods bought via the internet. Cryptocurrency grows in value as people want to buy it. For instance, if you invested $1000 in Bitcoin in 2010, it would be worth $1.07 million now. "For that reason, fights during property settlements over division of cryptocurrency can be difficult, particularly as there is no central register and holdings can be relatively easy to hide. "Putting a dollar value on cryptocurrency can be problematic, as prices fluctuate. Usually courts accept the current value, but parties often argue it should be the date of purchase, the date of cohabitation or the date of separation. "It may be necessary to consult cryptocurrency experts to locate, track and calculate the amount held by the parties involved in the separation. Cryptocurrency transactions are often anonymous and buried deep inside blockchains, so it may require forensic accountants to find hidden digital assets. "Then comes the question of how to divide digital assets. It may be a trade-off, where one person keeps the Bitcoin and agrees to hand over part of their share of other joint assets, such as investments, in compensation. This could save on tax, because cryptocurrency can be subject to capital gains tax when sold or transferred." Ms Flanagan says it is the same with frequent flyer and other award points, which can add up for people who travel a lot and amass points through shopping. Some can be cashed in or transferred. In one court case a judge ordered a husband to transfer a million points to his wife. In another case, a father with 1.7 million Qantas frequent flyer points was ordered to transfer 600,000 points to his three children. "If a person suspects their partner has secretly siphoned family savings into cryptocurrency, you need to remember it is part of the joint property and must be declared during property settlement negotiations," Ms Flanagan said. STACKS LAW FIRM Joshua Crowther Specialist in Wills, Estates & Wealth Protection 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack Cryptocurrency new battleground in divorce settlements More and more people have digital assets such as cryptocurrency that can be worth a fortune , but it isn't mentioned in the Family Law Act and is increasingly becoming the battleground in family law property settlements . Ashleigh Flanagan , family lawyer at Stacks Law Firm , says even though Bitcoin , Ethereum and other digital assets are not specifically mentioned in legislation , they are considered to be " property " and are subject to the laws covering the division of property in family law matters , in the same way as a house , car , investments or money . " Family lawyers are increasingly seeing disputes over hidden cryptocurrency and frequent flyer points in property fights between separating couples , " Ms Flanagan said . Even though cryptocurrencies exist only on computers , they can be exchanged for goods bought via the internet . Cryptocurrency grows in value as people want to buy it . For instance , if you invested $ 1000 in Bitcoin in 2010 , it would be worth $ 1.07 million now . " For that reason , fights during property settlements over division of cryptocurrency can be difficult , particularly as there is no central register and holdings can be relatively easy to hide . " Putting a dollar value on cryptocurrency can be problematic , as prices fluctuate . Usually courts accept the current value , but parties often argue it should be the date of purchase , the date of cohabitation or the date of separation . " It may be necessary to consult cryptocurrency experts to locate , track and calculate the amount held by the parties involved in the separation . Cryptocurrency transactions are often anonymous and buried deep inside blockchains , so it may require forensic accountants to find hidden digital assets . " Then comes the question of how to divide digital assets . It may be a trade - off , where one person keeps the Bitcoin and agrees to hand over part of their share of other joint assets , such as investments , in compensation . This could save on tax , because cryptocurrency can be subject to capital gains tax when sold or transferred . " Ms Flanagan says it is the same with frequent flyer and other award points , which can add up for people who travel a lot and amass points through shopping . Some can be cashed in or transferred . In one court case a judge ordered a husband to transfer a million points to his wife . In another case , a father with 1.7 million Qantas frequent flyer points was ordered to transfer 600,000 points to his three children . " If a person suspects their partner has secretly siphoned family savings into cryptocurrency , you need to remember it is part of the joint property and must be declared during property settlement negotiations , " Ms Flanagan said . STACKS LAW FIRM Joshua Crowther Specialist in Wills , Estates & Wealth Protection 02 6592 6592 taree.stacklaw.com.au Partners in life