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:
- Compile comprehensive inventory of all crypto holdings
- Document cost basis and acquisition dates
- Obtain exchange statements for all accounts
- Photograph hardware wallets and document serial numbers
- 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.
Frequently Asked Questions
How do Illinois courts divide cryptocurrency in divorce?
Illinois treats cryptocurrency as marital property under 750 ILCS 5/503. Courts require professional valuation at a specific date (typically judgment or trial date) due to volatility. Division methods include liquidation, in-kind transfer, or offsetting against other assets. Forensic blockchain analysis may be necessary to trace wallet ownership and transaction history.
Can my spouse hide cryptocurrency during divorce?
Attempting to hide crypto assets is discoverable and carries serious consequences. Blockchain forensics can trace wallet addresses, exchange transactions, and mixing services. Illinois courts impose sanctions for asset concealment, including adverse inference instructions and disproportionate property awards.
What cryptocurrency disclosures are required in Illinois divorce?
Full disclosure is mandatory under Illinois Supreme Court Rule 13.3.1. You must disclose all digital assets: cryptocurrency holdings, NFTs, DeFi positions, staking rewards, and exchange accounts. Failure to disclose constitutes fraud and can result in sanctions, perjury charges, and reopening the judgment.
Written by Jonathan D. Steele
Chicago divorce attorney with cybersecurity certifications (Security+, ISC2 CC, Google Cybersecurity Professional Certificate). Illinois Super Lawyers Rising Star 2016-2025.
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