Uncovering Cryptocurrency, NFTs and other Digital Assets in Family Law Property Settlements
Uncovering Cryptocurrency, NFTs and other Digital Assets in Family Law Property Settlements
Subject: Legal CPD | Legal Compulsory CPD
Author: Fraser Bax, Partner, HopgoodGanim Lawyers
Cryptocurrency is a burgeoning asset class in Australia that is disrupting societal traditions, with recent studies suggesting between three and five million Australians own cryptocurrency. The availability of smartphone apps for cryptocurrency exchanges and wallets means an increased number of Australian taxpayers are now accessing this new and emerging form of investment.
In recent years, Australia’s family law courts have at the trial level commonly treated digital assets, particularly cryptocurrency, as property available for adjustment and distribution in property settlement proceedings. We are yet to see a direct challenge to this at the appellate level, but it needs to be remembered that cryptocurrency and NFTs are similar to existing technologies the property rights attached to which we take for granted (e.g. digital bank balances such as PayPal accounts or patents and trademarks). There is little reason to think digital assets that use blockchain technology will not continue to be treated as “property” by the Australia family law courts.
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