Does the court look at cryptocurrencies in divorce proceedings?
Cryptocurrency is viewed as an asset in divorce and financial proceedings. At the financial disclosure stage of the divorce process, both parties have a duty to provide full and frank disclosure of their finances. Any cryptocurrencies should be identified at this stage.
Once identified, cryptocurrencies need to be valued. As with any other asset involved in a divorce settlement, such as a house or a business, there must be a figure placed on the cryptocurrency to assist the settlement negotiations.
Unfortunately, cryptocurrencies are inherently difficult to value as their price is highly volatile. As the price of cryptocurrencies can vary wildly within the course of a divorce, although a partner could have built up a substantial crypto fortune when filing for divorce, it may have diminished by the time of settlement and vice versa.
Experts can be instructed to ensure that the valuation used within the divorce settlement negotiations is fair and impartial. This is vital for both sides as an inaccurate valuation will lead to an unfair settlement.
Cryptocurrencies should not be dismissed within settlement negotiations and they are assets of which the Court has the power to transfer ownership in divorce.
Related FAQs
- Remember that employees will also be making contributions on any reduced wage under the Coronavirus Job Retention Scheme. The amount contributed may be less, but the contribution rate will be the same, unless the following applies.
- Employees may reduce their DC employee contributions if their scheme rules allow them to do so, but no further than the statutory minimum if the scheme qualifies as the employer’s auto-enrolment vehicle.
- Employees might choose to opt-out or cease active membership of their scheme, which might cause a spike in administration at a time when administrators are likely to be understaffed. It is important that employers remember they must not do anything to encourage or induce employees from leaving an auto-enrolment vehicle as this may constitute an offence.
- Employees who leave their scheme in this way will have to be re-enrolled in due course as and when required by law.
- For DB schemes, specific considerations apply (see the last section, below).
This will depend on the particular facts and the employee’s circumstances but an employee should co-operate with the employer so far as is necessary to enable compliance with any statutory duty or requirement relating to health and safety.
In addition, conduct outside of work can result in an employee’s dismissal if the conduct pertains to the employment relationship. If an employee breaches their lockdown rules and it affects their ability to work, such as it being no longer safe for them to attend work, or the reputation of the employer, these may be grounds for disciplinary action and subsequent dismissal.
The practicalities and processes regarding disrepair claims will undoubtedly be affected. Housing providers will have to adopt a risk-based approach and consider government guidance to handle claims going forward. Key points to consider are:
- Compliance with the Pre-Action Protocol for Housing Conditions Claims (particularly disclosure)
- The practicalities of inspection
- Non-urgent repairs
The change in the law has the potential to place much greater financial risks on suppliers, making it more difficult to exit a contract with a customer of doubtful solvency. This will place increased emphasis on appropriate financial due diligence and credit checking before entering into supply contracts.
In addition to the obvious issues around financial risk, suppliers will also need to think carefully about how their contracts are drafted. For example, any form of right that is drafted so as to be triggered on customer insolvency will clearly be problematic. These could include:
- Retention of Title provisions, which are commonly drafted so that the right to enter premises and retake possession of the goods is triggered on insolvency;
- Provisions for brand protection, which seek to control how goods are dealt with on termination of the contract.
This is potentially a very significant development for many businesses. We would strongly recommend specialist advice be obtained so that:
- businesses understand the potential increased risks faced; and
- where possible, contracts are updated so that appropriate protections are maintained.
The Vice President of the COP, Mr Justice Hayden, has issued guidance to assist parties during this challenging time.
The latest guidance with all relevant updates on developments is available on the judiciary website here.