Matrimonial attorneys who omit cryptocurrency holdings or accept an “approximate value” from opposing counsel in discovery are now officially out of compliance.
Effective December 1, 2025, New York State’s revised Statement of Net Worth form introduces a structural change that demands the immediate attention of every matrimonial attorney in the state. The form now includes a section dedicated to digital assets, Section L. 14. Cryptocurrency.
This significant update means that courts now expect disclosure of detailed information about crypto assets, along with other assets and liabilities. Here’s what family law attorneys need to know to keep their discovery complete and compliant.
The New Mandate: What Must Be Disclosed?
Previous Statement of Net Worth forms did not specifically address cryptocurrency. This omission allowed digital assets to remain, at worst, unlisted or, at best, buried in general asset summaries without critical details (e.g., “cryptocurrency – $20k worth”). The new form eliminates this loophole.
Section L (Item 14) of the revised form now requires the disclosure of 13 specific data points for each holding. Matrimonial attorneys can no longer simply list “Coinbase Account: $50,000.”
The revised form requires that the parties, who must sign the form under oath, disclose the following information:
- Identity. The specific Platform, Account, or Name of Currency (e.g., “Ethereum on Kraken” or “Bitcoin in Cold Storage”)
- Custody. Who is the “Custodian of Currency”? (Is it an exchange like Binance or self-custody, as in a personal hardware wallet?)
- Location. Account Number or Wallet address
- Timeline. Date of Original Acquisition
- Provenance. Party Acquiring Currency and Source of Funds to Acquire (Crucial for tracing)
- Valuation History
- Original Price
- Value at Date of Marriage
- Value at Date of Commencement
- Current Number of Coins (not just the dollar value, but the specific unit count, which is more important and relevant)
- Current Value
Why This Granularity Matters (And What It Means for Attorneys)
These fields weren’t chosen at random. Disclosure of these details is meant to prevent common disputes regarding separate property, asset appreciation, and value as of certain dates. This information also facilitates independent verification of the data, avoiding many disputes about the accuracy of the disclosure.
The “Custodian” & “Wallet” Fields: The Keys to Discovery
By requiring the “Custodian of Currency” and “Account Number/Wallet,” the form forces a distinction between custodial and non-custodial assets.
- Recipients. If the disclosure lists an exchange (e.g., Coinbase), attorneys can subpoena records. If the form lists a non-custodial wallet (e.g., Ledger, Trezor, MetaMask), attorneys cannot subpoena a third party. Instead, counsel must immediately demand the master extended public keys (xPubs) to verify the blockchain transactions.
- Filers. Accuracy is crucial. Misidentifying a personal wallet as an exchange account (or vice versa) creates a roadmap to a dead end. Such minor errors can lead to failed subpoenas and significant delays, causing the court or opposing counsel to question the reliability of the entire disclosure.
“Source of Funds” & “Date of Acquisition”: The Separate Property Trap
The revised form explicitly demands the “Source of Funds to Acquire” and “Date of Original Acquisition.”
- The Trap. If a client claims cryptocurrency is separate property but cannot link the “Source of Funds” to a pre-marital account or inheritance, this line item will expose that weakness immediately.
- The Opportunity. For the non-monied spouse, if this field is left blank or vague (“savings”), it invites immediate cross-examination. Were marital funds used to purchase that cryptocurrency during the marriage, in a custodial account opened before the marriage? If so, all or part of the account may be marital.
“Current Number of Coins”: The Volatility Equalizer
Perhaps the most critical addition is the requirement to list the “Current Number of Coins” instead of a fiat (USD) value.
Cryptocurrency is volatile. A valuation of $100,000 at the time of form preparation might be $80,000 or $120,000 by the time the other side reads it. By mandating the unit count (e.g., 2.5 BTC, 100 ETH, etc.), opposing counsel can independently calculate the current value, or the value on the date of commencement, the date of marriage, or any other relevant date.
Risks of Non-Compliance
The Statement of Net Worth is a sworn document, subject to the penalties of perjury. Because the form now specifically asks for these details, failure to include them is no longer an “understandable oversight”; it is a specific and presumably intentional omission.
- Incomplete Disclosures. Leaving fields like “Wallet Address” or “Source of Funds” blank because the client “doesn’t remember” is risky. The specific prompt implies that a “reasonable inquiry” must be made to find this data.
- The “N/A” Danger. Attorneys cannot mark this section “not applicable” simply because the client holds the keys on a thumb drive, not in a bank. If the asset exists, Section L mandates full transparency.
Summary Checklist for Matrimonial Lawyers
When reviewing a client’s draft or opposing counsel’s submission, apply this Section L Audit:
- Is the “Custodian” identified? (If self-custodial, do you know where the keys are?)
- Is the specific “Number of Coins” listed? (Can you track the asset regardless of price swings?)
- Is the “Source of Funds” specific? (e.g., “Transfer from Chase Joint Checking x1234” vs. “Income”?)
- Are liens disclosed? (The form asks about “Lien on Coins,” which is crucial for leveraged trading accounts where the net value may be far lower than the gross holding.)
Revised Net Worth Statement Calls for New Standard of Care
The addition of Section L is more than an administrative change; this revision recognizes the prevalence and importance of crypto assets in New York matrimonial law. The days of treating cryptocurrency as a speculative novelty or an “invisible” asset have ended. The courts now demand—under oath—a granular accounting of digital assets in financial discovery. Consequently, matrimonial attorneys must adapt their own intake procedures and discovery process to meet the current Statement of Net Worth requirements.
For assistance with crypto assets or other digital forensic and discovery matters, contact the NGH Group at (516) 621-6500.
