Insights

How to divide the virtual currency in Ningbo.

Ningbo Author：LuXu WANG

Bitcoin, Ethereum, and other virtual currencies, as well as platform tokens and points, have increasingly become subjects of property division in divorce proceedings. To conclude: Virtual currency acquired during marriage using marital joint property constitutes marital joint property and shall be subject to division upon divorce. The division shall be based on the actual value at the time of divorce (or trial), rather than its historical peak. Typically, the party holding the virtual currency will compensate the other party by paying half of its current value, while the account remains with the holder, who shall bear responsibility for any subsequent gains or losses. Virtual currency price volatility, strong anonymity, acquisition time and source of funds are the two keys to determine ownership, evidence fixation and present value confirmation are the two keys to practice.

Legal basis of 1.: How to define virtual property

Article 127 of the the People's Republic of China Civil Code stipulates: "If the law has provisions on the protection of data and network virtual property, the provisions shall be followed. "The article includes the network virtual property into the legal protection framework, virtual currency as a digital asset with property value, its holding rights and interests are protected by law. Virtual currency purchased with the joint property of husband and wife after marriage belongs to the joint property of husband and wife in accordance with Article 1062 of the Civil Code. Divorce shall be divided in accordance with the first paragraph of Article 1087 of the Civil Code, and shall be dealt with in accordance with the principle of taking care of the rights and interests of children, women and non-fault parties.

At the same time, we should pay attention to the policy boundary: The Notice on Further Preventing and Disposing the Risk of Virtual Currency Trading Speculation (September 2021) of the People's Bank of China and other departments makes it clear that the business activities related to virtual currency are illegal financial activities, and the services provided by overseas exchanges to domestic residents are also illegal financial activities. This means that the virtual currency legally held and passively kept by individuals can be divided into property, but the "business activities" such as trading, exchange and market making carried out by domestic institutions are not protected by law, and the divorce division forcibly requires "transfer" to the other party's account, it may face platform non-cooperation, account restrictions and even compliance risks-this is the root cause of the widespread use of "discount compensation" rather than "direct transfer" in practice.

Common disputes of ownership identification: first, the real name of the account is inconsistent with the main body of capital contribution (borrowing other people's account to hold it on behalf of others), and the party who claims to share must prove that the capital comes from the joint property of husband and wife, and the transfer notes, chat records and the agreement on behalf of each other confirm each other; second, new forms of assets such as mining output, airdrop and pledge income belong to production and investment income after marriage, generally according to the common property treatment; Third, the pre-marital holding currency after marriage replacement, the replacement itself does not change the nature of ownership, the pre-marital part of the corresponding rights and interests are still personal property, after marriage the new input part is counted separately. The three elements of which account the fixed funds come from, when they are bought, and in whose name they are registered are the basis for resolving the above disputes.

From the perspective of national adjudication, virtual currency has been generally recognized as virtual property protected by law, but there are differences in the way of division: some courts deal with it according to who holds it, and some order it to be divided according to share or negotiated price when both parties claim it; the value determination mostly refers to the mainstream trading platform price at the time of trial, and individual cases are supplemented by judicial evaluation. The rules of the 2025 Marriage and Family Interpretation (II) on squandering and transferring the common property of the husband and wife (Articles 6 and 7) also apply to the virtual currency scenario-if the other party clears large positions and transfers money frequently without authorization, the other party may claim that the party has less or no division.

How to divide the 2. three types of acquisition situations

  1. Acquired before marriage, or purchased after marriage with personal property before marriage: In principle, it belongs to personal property and is not included in the division of common property; but if the common property continues to be invested and additional positions are added after marriage, the invested part and the corresponding value-added can be included in the division scope.
  2. Purchased with marital joint property after marriage: it constitutes marital joint property and shall be divided upon divorce. When dividing, the acquisition time, source of funds, trading platform and real name attribution are fixed, and then the compensation is calculated according to the present value.
  3. Unauthorized large purchase, suspected profligacy or transfer by the married party: The other party can claim rights according to Article 1066 and Article 1092 of the Civil Code-Article 6 of the Interpretation (II) for Marriage and Family implemented in 2025 clearly states that if one of the spouses uses the joint property of the husband and wife to reward on the webcast platform without the consent of the other party and the amount obviously exceeds the general consumption level of the family and seriously damages the interests of the joint property, it can be regarded as "squandering", the other party may request a division of the common property within the marriage or a lesser or lesser division of the common property at the time of divorce; article 7 provides for the invalidity and lesser division of the common property to a third party for the purpose of breaching the duty of loyalty. The abnormally large purchase and frequent transfer of virtual currency may also refer to the spirit to claim that the other party has less or no division, but must prove that "unauthorized" "large" "damage to the interests of common property".

The division proportion is not equal to half: the court will adjust the proportion according to the source of the property, the length of the marriage, the contribution of both parties and the fault; if one party mainly purchases personal property and the other party only makes a small contribution, the share can be divided according to the proportion of contribution, and then the corresponding part of the joint contribution can be divided. For currencies with sharp fluctuations in value, the two parties may negotiate to a certain point in time as the benchmark and set up installment payment and other buffer arrangements to reduce the risk of execution and wrangling.

3. value evaluation and segmentation path

The first step of virtual currency segmentation is fixed evidence: acquisition time (first purchase record), source of funds (bank flow, account pointed to by transfer record), trading platform (real name information of exchange account, statement), position ownership (private key custodian, account real name). The second step is to confirm the present value: based on the market price at the point of divorce proceedings, exchange statements, mainstream market platform data, and quotations approved by both parties can be used as a reference; avoid pricing at historical peaks-virtual currency prices fluctuate greatly, and claiming compensation with peaks is neither in line with the referee's caliber nor difficult to implement. The third step is to determine the division method: in order to avoid the compliance and execution risks caused by forced transfer, discount compensation is usually adopted-the holder shall pay half of the compensation corresponding to the present value to the other party, and the account shall continue to be held by the holder and bear the subsequent rise and fall; If both parties reach an agreement through consultation, the amount and payment method can be determined in the pre-litigation mediation or divorce agreement. If a party refuses to declare its position or cooperate with the valuation in the lawsuit, the court may order it to explain and provide account records; if it refuses to do so without justifiable reasons, it may determine the value on the basis of the other party's evidence and market data, and make a determination against it. For funds that have been transferred abroad or processed in mixed currencies, domestic enforcement is difficult, and it is appropriate to apply for the preservation of domestic related property (deposits, real estate, vehicles) simultaneously in the litigation to ensure that the judgment can be landed. If one party falsely reports its position, conceals its account or transfers tokens, the other party may claim less or no points in the fixed transaction record, and if necessary, apply to the court to investigate the exchange for cooperation in obtaining or preserving the account.

4. (example, fictional) deduction case and local case confirmation

In the divorce lawsuit of a couple in Ningbo, the man purchased a mainstream virtual currency with the couple's joint funds after marriage, with a peak market value of about 600000 yuan, and the price had dropped to about 220000 yuan at the time of divorce. The woman advocates the division of the common interest at present value. The People's Court of Fenghua District of Ningbo City held that the virtual currency purchased with common property after marriage is common property. In view of the sharp price fluctuation and the direct division of currency value, the two parties are organized to negotiate. The holder shall pay the other party a compensation of 110000 yuan corresponding to half of the present value. The virtual currency account shall continue to be held by the man and bear the risk of subsequent value changes. The two parties reached mediation in court. The main points of the case: look at the acquisition and capital contribution, not based on the peak. Extending the main points of

class cases: the scheme of half of the present value plus self-bearing ups and downs adopted in Fenghua case is not an isolated case in Zhejiang-the cases involving virtual currency division generally end with mediation and discount compensation, and it is rare to directly order the currency to be delivered; some courts also require the holder to explain the price of the sold currency, and those that cannot be explained are included in the divided property according to the value at the transaction time point. For the holder, proactively disclosing information and cooperating with the valuation process can actually secure more favorable settlement terms; for the non‑holder, promptly securing evidence and preserving assets within the jurisdiction is far more practical than disputing the cryptocurrency price.

Judging from the adjudication situation in various places, divorce cases involving virtual currency are increasing year by year, but there are very few real judgments that directly divide the currency: most of them are settled by mediation, and those that fail mediation are mostly compensated by the value at the time of trial. The timing of the discount compensation has a great impact on the result-it is common for the price of the currency to be halved or doubled during the litigation period, and the two parties can agree in the mediation to use the average price of the market on a certain day as a benchmark, pay within a time limit, and pay interest on a daily basis, so as to convert the risk of price fluctuation into a definite monetary obligation.

5. Common misconceptions and correct answers

  1. Misconception: Virtual currency is "black money" and the court will not deal with it. Virtual currency, as virtual property with property value, is protected by law, and those purchased by joint investment after marriage can be divided according to law; however, there are policy restrictions on platform transactions, which mostly adopt discount compensation rather than transfer.
  2. Misunderstanding: by purchase price or historical peak. should be divided according to the actual value at the time of divorce (at trial), with the holder compensating the other half of the present value; claims at the peak are usually not supported.
  3. Myth: Concealing accounts and underreporting holdings will result in greater gains. False reporting, concealment and transfer of tokens may be identified as transferring the common property of husband and wife, and may also bear corresponding legal responsibilities if the division is less divided or not divided.
  4. Misunderstanding: Domestic courts cannot control the currency in overseas exchanges. Ownership determination and discount compensation belong to the civil trial scope of our country's courts, which can determine the fact of joint investment and decide compensation according to the capital flow and transaction records; the execution level can be realized by sealing up the domestic related property.

Evidence collection and compliance tips: the domestic trading platform has been cleared and returned one after another after 2021, and historical orders can only be obtained through export records, registered email correspondence or retained by the platform customer service; keep the registered email, real-name authentication information and historical statements, and apply for notarization and fixation if necessary. Do not obtain sensitive information such as private keys and mnemonics by illegal means such as intruding into the other party's equipment. Evidence obtained illegally may not be accepted and may lead to liability. After the signs of marriage change appear, fix the screenshots of the exchange account, wallet address and chat record as soon as possible, and hold the evidence in your own hands.

The connection between virtual currency division and taxation and platform: Discount compensation for divorce belongs to the division of marital property, which generally does not involve individual tax; if the holder sells tokens in the future, it shall be handled according to the current national tax policy. When the account transfer is difficult to achieve under the platform compliance restrictions, it can be resolved by means of compensation plus account income attribution agreement, and the commitment of both parties for future ups and downs is stated in the mediation statement or agreement to avoid secondary disputes.

6. Frequently Asked Questions

Virtual currency at the time of divorce, at the purchase price or at the current price?

According to the actual value (present value) at the time of divorce (trial), not the purchase price or historical peak; the holder compensates the other party half of the present value, and the account continues to be held by the holder and bears the ups and downs.

Do coins bought before marriage count as common property when they rise after marriage?

In principle, acquisition before marriage does not belong to common property; if we continue to invest with common property after marriage, the part of the investment and the corresponding value added can be included in the division; the value added only due to the rising market is generally not regarded as common property.

What should I do if the other party secretly transfers tokens?

can fix accounts, transaction records and transfer-out time evidence, and claim less or no division; if the evidence is sufficient, can apply to the court to investigate the transaction records or take preservation measures for the domestic related property. If the circumstances are serious, the responsibility will be investigated according to the circumstances.

The other party says the coins have already been sold out—what should I do?

can apply for obtaining historical statements and on-chain transaction records, and require them to explain the whereabouts of the selling price; if they cannot explain and the evidence shows that they have held a large amount of money, they can claim to be included in the divided property according to the value of the corresponding time point, and make unfavorable treatment to them during the division; deliberately hiding or transferring may also constitute transferring the common property of husband and wife.

Can virtual currency be transferred to each other like a house?

Forced transfers are usually not recommended. Platform compliance requirements and policy restrictions pose obstacles to the transfer of assets; in practice, a discounted compensation arrangement is often employed—where the holder retains the asset and pays the other party half its current value—thereby mitigating compliance and enforcement risks.

7. Practical insights from a lawyer

The difficulty in the division of this kind of property is never whether it can be divided, but how to prove how much it is and how much it is worth. Virtual currency has strong anonymity. Accounts may borrow the names of others and transaction records are scattered on multiple platforms. Therefore, the first thing to do is not to make urgent claims, but to fix evidence: the corresponding relationship between account ownership and capital contribution source is the key. Transfer records, chat or remarks during purchase and platform running water should be able to confirm each other to prove that these assets were acquired after marriage with the common property of husband and wife. If the source is unclear and the account is in someone else's name, the claim of common ownership will be questioned.

The second key action is to recognize the point of value. The price of virtual currency is extremely volatile, and the result may be several times worse at historical peaks or at the present value at the time of divorce or trial, and in practice compensation is usually based on the actual value at the time of divorce or trial. Therefore, the advocating party should try to fix the market value at the time of prosecution, such as intercepting the verifiable market and position records, and valuing them through court entrustment or mutual approval, so as to avoid the other party hiding at the high point of price and taking them out at the low point. The sooner the evidence is fixed, the less likely it is that the amount will be diluted by the argument that the market has changed.

The division method should be mainly based on discount compensation, instead of imposing the transfer of coins to the other party's account.The holding and realization channel of virtual currency itself is restricted by the policy, forcing the transfer, often facing the platform does not cooperate or even compliance risk, the actual operation is more feasible by the holder to pay the discount to the other party according to the present value, the account continues to be held by the holder and bear the subsequent rise and fall. This point should be made clear to the parties in advance: it is necessary to calculate clearly and recognize the boundary of implementation. If you are concerned about the other party taking advantage of the transfer, you can apply for preservation in the lawsuit or ask the other party to explain and fix the position and lock the assets until the dispute is resolved.

Virtual currency divorce division, look at the acquisition and capital contribution, not the peak. The other party shall enjoy half of the interest in the currency purchased jointly after marriage, and the compensation shall be based on the actual value at the time of divorce, and the holder shall bear the future rise and fall. When signs of marital change are found, the transaction records are first exported and notarized, and the four types of evidence of acquisition time, source of funds, platform and real name ownership are fixed. The negotiation is based on "half of the present value + the owner bears the rise and fall", and if necessary, it will be settled as soon as possible through pre-litigation mediation to avoid aggravating disputes caused by currency price fluctuations during the litigation cycle. For positions that cannot be identified for the time, the time, the judgment can be indicated separately, reserve the right to claim new clues in the future; if the other party voluntarily requests to split its currency in the lawsuit, it may request it to disclose all its positions in writing and promise to declare truthfully, write the disclosure obligation into the mediation statement or judgment, and leave a good grip for execution and subsequent accountability.