Prenups for Crypto Assets –
The rapid rise of cryptocurrency has created a legal gray area in divorce courts—one that’s leaving many Los Angeles spouses shocked to discover their Bitcoin wallet is considered community property. At Hayat Family Law, we’ve developed specialized strategies to safeguard digital assets through crypto-specific prenuptial agreements. Here’s what tech-savvy couples need to know in 2025.
Why Standard Prenups Fail Crypto Holders
Most traditional prenups don’t account for:
– Privacy coins (Monero, Zcash) that resist tracking
– DeFi yield farming with fluctuating values
– NFT collections with subjective worth
– Staked assets generating passive income
Costly Lesson: A Silicon Beach entrepreneur lost 37 ETH ($120K) because his 2018 prenup only mentioned “bank accounts.”
Essential Crypto Prenup Clauses for 2025
1. Wallet Identification Protocol
Requires:
✅ Annual disclosure of all public addresses
✅ Notarized private key backups in secure storage
✅ Exchange account login credentials (held in escrow)
2. Valuation Methodology
Specifies whether assets will be:
– Valued at date of marriage vs. date of divorce
– Calculated in USD equivalent or original coin
– Adjusted for tax liabilities upon liquidation
3. Cold Storage Protection
Prevents:
❌ Unauthorized transfers during divorce proceedings
❌ “Lost wallet” claims (we’ve seen this 14 times)
❌ Commingling with marital funds
Los Angeles-Specific Considerations
Our courts are seeing:
– NFT community property battles (especially for artists)
– Subpoenas to Coinbase/Crypto.com becoming routine
– Forensic crypto tracing now standard in high-net-worth cases
Recent Case: We preserved a client’s Bored Ape NFT collection (valued at $2.1M) by proving he acquired it pre-marriage through blockchain timestamps.
3 Mistakes That Invalidate Crypto Prenups
1. Vague Language
❌ “Cryptocurrency will remain separate property”
✅ “All digital assets held in Wallet Address X as of 2025…”
2. Ignoring Tax Implications
– Failing to specify who pays capital gains
– Overlooking staking rewards as income
3. Poor Key Management
– Losing hardware wallets voids protections
– Exchanges going bankrupt (FTX collapse lessons)
How We Draft Bulletproof Agreements
Our process includes:
1. Blockchain Forensics (tracing asset origins)
2. Multi-Sig Wallet Setup (preventing unilateral transfers)
3. Smart Contract Integration (automating disclosures)
Don’t let your digital fortune become a divorce casualty. Call (310) 917-1044 to secure your crypto with a cutting-edge prenup.
