Splitting Crypto Assets in Divorce: Legal Hurdles and Solutions in China
Crypto assets acquired during marriage are marital property under China’s Civil Code. In divorce proceedings, however, courts rarely divide tokens due to challenges in proving ownership, valuing volatile cryptocurrencies, and enforcing judgments on decentralized networks. Anonymous wallets and fluctuating prices of Bitcoin (BTC) and Ethereum (ETH) complicate proof and valuation. Stablecoins like USDT can be valued at 1:1 with USD, but NFTs and DeFi tokens lack clear pricing. Enforcement is hindered by the absence of legal channels to freeze or transfer assets on global blockchains. The only reliable solution is a detailed divorce agreement. Parties must agree on yuan-based valuations, division ratios, buyout terms, payment schedules, and wallet disclosures. A 2021 Beijing Xicheng Court case upheld a 2.4 million-yuan valuation with a 50-50 split and RMB buyout, demonstrating that clear agreements are enforceable. Spouses should proactively negotiate comprehensive crypto asset division to avoid post-divorce disputes.
Neutral
This news has a neutral impact because it primarily addresses legal procedures for dividing crypto assets in divorce, rather than market-moving developments such as regulatory bans or major economic events. While clearer legal frameworks can enhance long-term confidence and adoption of digital assets, the current judicial challenges and lack of enforcement mechanisms maintain uncertainty. In the short term, traders are unlikely to adjust positions based on domestic divorce settlements. In the long term, however, the move toward legally recognizing crypto as marital property could support market stability by affirming its status as an asset class, a pattern seen previously when legal clarity in other jurisdictions aided institutional adoption. Overall, the effect is balanced between increased legal recognition and ongoing operational uncertainties.