Crypto Assets Add Costly Complications to High-net-worth New York Divorce Cases

By Yonatan Levoritz, Founding Attorney – Levoritz Law Firm

Divorce cases involving high-net-worth clients also typically involve a wide range of assets. For attorneys involved in such cases, that means asset division requires looking beyond common holdings like bank accounts and real estate to assets like stock options, royalties, and fine art.

As cryptocurrencies and other digital assets have become more popular, they have also been added to the list of holdings that often must be ascertained and divided in high-net-worth divorces. But the unique nature of crypto adds unique challenges to divorce cases.

Unravelling the financial maze in high-net-worth divorce cases

To fully understand the challenges that crypto brings to high-net-worth divorce cases, it’s important to understand the complex process attorneys must navigate to unravel the financial maze and ensure an equitable outcome. The process relies heavily on forensic discovery, which seeks to provide a full picture of the finances involved by identifying all of the relevant assets. The process is challenging because assets can be held in institutions, jurisdictions, or forms designed to limit tax responsibilities through nominee or beneficial ownership.

Today, attorneys and the financial professionals who assist them in high-net-worth divorces are beginning to use AI to help identify the existence of hidden assets and track their location. For example, AI can be used to analyze financial data in ways that identify “lifestyle inconsistencies” that point to an unreported source of income.

Once assets are identified, asset valuation must be carried out. This can be especially challenging if assets involved in the case are illiquid and must be sold before their value can be solidly established.

The unique challenges crypto adds to identification and valuation

Cryptocurrency was designed to be highly transparent. Transactions conducted on blockchain create immutable entries that show movements of funds and changes in ownership.

However, crypto is also commonly pseudonymous. The fact that crypto owners often conceal their identity behind pseudonyms means attorneys often face the arduous task of establishing ownership before they can include crypto in the assets to be divided by divorce proceedings.

Efforts to identify ownership of digital assets often begin with identifying links between traditional financial institutions and crypto exchanges. Such efforts can involve the work of blockchain forensic analysts trained in mapping the flow of digital assets, whom attorneys may rely on to provide expert testimony in an effort to prove that pseudonymous accounts can reliably be tied to a party in the case.

Attorneys may also rely on digital forensic examiners who can identify the signs that someone has used a phone or other device to access crypto exchanges. These examiners often practice what is known as “zero-trust auditing,” which assumes records have hidden data that must be uncovered.

The hope is that blockchain forensic analysts and digital forensic examiners can find a digital paper trail to a specific exchange. At that point, courts can subpoena records related to the account to determine if assets held there should be included in divorce proceedings.

Once digital assets are identified and secured, attorneys face the challenge of ensuring their value is properly determined. If neither party is risk-averse, the matter can be settled by dividing crypto wallets equally, but if one party is more conservative and wants to trade assets, the high volatility of crypto comes into play.

Virtual asset valuation specialists have become important in high-net-worth divorce proceedings for the expert assistance they can provide in determining the fair market value of digital assets. If assets are illiquid, such as crypto that has been staked, asset valuation specialists can help determine the discounts that should be applied due to their lack of marketability.

Courts and divorce proceedings are adjusting to address the inclusion of crypto

My experiences with high-net-worth divorce cases have shown me that courts are becoming more gracious when it comes to the discovery of crypto. I’ve also seen that they’ve taken a harder stance toward parties who are found to have attempted to hide crypto assets.

Regarding the division of crypto assets, I advise clients to place a higher priority on obtaining assets that are more stable. If a spouse wants to trade something like real estate for crypto, I say let them have it. Crypto can be purchased later during a correction, such as the one that occurred in late February 2026.

While crypto has added complication to proceedings in high-net-worth divorce cases, it hasn’t changed the best practices for those involved. To protect themselves, those facing divorce litigation should compile a list of their assets and liabilities that can be used to establish their net worth and determine which assets they can realistically trade in the process.

They should also ensure they retain an attorney with the expertise and experience to navigate the nuances of high-net-worth divorces. In 2026, that means working with an attorney who is familiar with the complications digital assets introduce and who has connections to the type of experts who can help to track down and value those assets.

Author Bio

– Yonatan Levoritz is the founding attorney of Levoritz Law Firm, admitted to the New York bar in March 2005. From the outset, he pursued a different path — rejecting the conveyor-belt model of legal practice and instead embracing a holistic, client-centered approach that treats every case with equal care and attention, no matter its size. Over his career, he has focused primarily on matrimonial and family law, developing a reputation for taking on challenging and high-asset divorce and custody cases, including appeals and complex property-division matters.

DISCLAIMER

This is an opinion article by Yonatan Levoritz and does not constitute legal or financial advice. Legal outcomes in divorce proceedings vary depending on jurisdiction, case facts, and judicial interpretation. Cryptocurrency assets are highly volatile and complex to value, and individuals involved in divorce litigation should consult qualified legal and financial professionals before making decisions regarding digital asset disclosure or division.