Cryptocurrency and Digital Assets in an Ontario Divorce

If you or your spouse hold cryptocurrency, the questions pile up quickly. How do you put a value on something that moves every minute? Does your spouse have to know about it? What if it sits in a wallet that only one of you can open?

This article explains, in plain language, how Ontario's property rules generally work and how digital assets fit into them. The rules for valuing and tracing crypto in particular can be complex and depend on the facts, so an accountant and a family lawyer are worth consulting before you decide how to report or divide anything.

How Ontario divides property between spouses

For married spouses, the starting point is net family property. It is the value of the property you own at the separation date, minus your debts and excluded property, less the same net value at the date of marriage. A negative result counts as zero. The spouse with the larger share pays half of the difference as an equalization payment.

Nothing in that approach depends on what kind of asset it is. Savings, investments, a business and digital assets are all part of the picture if they are property you own. Unequal division is allowed only in very special situations where equal division would be extremely unfair.

A simple example: if one spouse's net family property is higher than the other's, the difference is split. The one with more pays half of that difference to the other. Crypto held by the higher-value spouse increases the figure, and so can increase the payment.

Valuing crypto at the separation date

Because the calculation uses the value of property at the separation date, the key question is what your holdings were worth on that day, not what they are worth today. Prices can change greatly between separation and the time of a settlement or hearing, so records matter.

How a court or the parties should value particular coins, tokens or other digital assets depends on the facts, and an accountant or valuator can help. In the meantime, you can build the evidence you will need.

• Identify the date of separation and be ready to explain why that date is right.
• Download full transaction histories from each exchange or platform you use.
• Record the quantity of each asset you held on the separation date.
• Note the price source you used for the valuation and keep screenshots or exports.
• List wallets and accounts, including ones you no longer use.
• Record when and how each asset was acquired, since some property may be excluded.
• Keep records of any transfers made around the time of separation.

Excluded property and what you owned on the wedding day

Some property is excluded from the calculation. It includes property, other than the family home, inherited or gifted by someone other than the spouse during the marriage, insurance money from a death, personal injury money, and property the spouses agree to exclude.

If you held crypto before the marriage, that value is deducted as part of the net value at the date of marriage. If you received crypto as a gift or inheritance from someone else, it may be excluded. Whatever the source, documents from the time are valuable, and a lawyer can explain what you would need to show.

If gifted or inherited assets were mixed with other funds, tracing can become complicated. That is a point to raise early with a lawyer who can look at how the money moved.

Disclosure: putting everything on the table

In a case with property claims, the financial statement is Form 13.1 (Financial Statement, Property and Support Claims), which covers property or debt claims with or without support. Form 13 is used for support claims without property or debt claims. These statements must be sworn or affirmed before a lawyer or commissioner of oaths, and a courthouse clerk can commission them for people without a lawyer.

Because the statement is sworn, it should be complete and accurate. Digital assets that are left off can lead to serious problems later. If you are unsure how to list a wallet, an exchange account or a token you cannot easily value, ask a lawyer before you swear the document.

If you are worried your spouse is not disclosing digital assets, gather what you know: emails from exchanges, bank transfers to platforms, and tax records. A lawyer can advise on how to raise it within the case. Generally, a party must attend a case conference before bringing a motion for a temporary order, though there are exceptions such as urgency and hardship.

What to do next

Start with records, not arguments. Export your histories, note your separation date, and make a full list of every account and wallet. Do not move, hide or sell assets in a way that could look like an attempt to avoid sharing, because that can seriously damage your credibility.

• Speak to a family lawyer about your separation date, disclosure and how to approach valuation.
• Ask an accountant about tax questions, since the tax treatment of digital assets is a separate topic.
• Watch the deadline: an equalization application must be made within six years of separation or two years after the divorce is final, whichever comes first.
• Keep copies of everything you send or receive about your finances.

Frequently asked questions