Cryptocurrency Discovery and Disclosure Requirements in Illinois Divorce

Illinois Disclosure Requirements

Under the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/501), both spouses have a continuing duty to disclose all assets, including cryptocurrency holdings. This obligation begins when divorce proceedings are initiated and continues until final judgment.

What Must Be Disclosed

Illinois courts require complete disclosure of:

• All cryptocurrency holdings — Bitcoin, Ethereum, altcoins, stablecoins
• Exchange accounts — Coinbase, Binance, Kraken, etc.
• Hardware wallets — Ledger, Trezor devices
• DeFi positions — Staking, lending, liquidity pools
• NFTs — Digital collectibles and art
• Mining operations — Equipment and pending rewards

Discovery Tools for Cryptocurrency

Interrogatories

Written questions requiring sworn answers about cryptocurrency ownership, exchange accounts, wallet addresses, and transaction history.

Requests for Production

Demand for documents including exchange account statements, wallet transaction logs, tax returns showing crypto income, and device access.

Subpoenas to Third Parties

Cryptocurrency exchanges can be subpoenaed to produce account records, though this may require navigating complex jurisdictional issues for foreign exchanges.

Digital Forensics

Court-ordered forensic examination of computers, phones, and storage devices to discover wallet software, exchange apps, and seed phrase storage.

Consequences of Non-Disclosure

Hiding cryptocurrency in Illinois divorce carries severe consequences:

Civil Penalties

• Adverse inference — Court may assume hidden assets favor the other spouse
• Unequal division — 100% of discovered assets may be awarded to the innocent spouse
• Attorney fees — Hiding spouse pays for discovery costs
• Contempt of court — Fines and potential incarceration

Criminal Exposure

• Perjury — Lying under oath about assets
• Fraud — Intentional concealment for financial gain
• Tax evasion — If hidden crypto wasn't reported to IRS

The Blockchain Paradox

Cryptocurrency's permanent public ledger creates a unique situation: assets that feel anonymous are actually permanently recorded. Transactions can be traced years later as blockchain analysis technology improves.

What may seem safely hidden today could be easily discoverable tomorrow—with the additional penalty of having attempted concealment.

Proactive Disclosure Strategy

The safest approach is complete, proactive disclosure:

1. Compile comprehensive inventory of all crypto holdings
2. Document cost basis and acquisition dates
3. Obtain exchange statements for all accounts
4. Photograph hardware wallets and document serial numbers
5. Disclose even minimal or dormant holdings

Key Takeaways

Cryptocurrency disclosure is not optional in Illinois divorce. The permanent nature of blockchain records means hidden assets are increasingly likely to be discovered, and the consequences of non-disclosure far outweigh any short-term benefit from concealment.

Written by Jonathan D. Steele

Chicago divorce attorney with cybersecurity certifications (Security+, CEH, ISC2). Illinois Super Lawyers Rising Star 2016-2025.

Free Consultation

For more insights, read our Divorce Decoded blog.