Cryptocurrency and Digital Assets in Malaysian Divorce

Is crypto matrimonial property in Malaysia?

Yes. Cryptocurrency is treated as property. Bitcoin, Ethereum, other coins and tokens, and NFTs bought or grown during the marriage can be divided under Section 76 of the Law Reform (Marriage and Divorce) Act 1976.

It does not matter whose name is on the account or wallet. What matters is when the crypto was bought and whose money or effort paid for it.

Where is crypto usually kept?

Crypto rarely shows up on a bank statement by name. It is usually in one of three places:

• an exchange account, such as Luno or Binance
• a wallet app on a phone, such as MetaMask or Trust Wallet
• a small hardware device, such as a Ledger or Trezor

A wallet is opened with a “seed phrase”, a list of 12 or 24 words often written on paper. Each wallet also has a public address, a long string of letters and numbers. Every transaction to or from that address is recorded publicly and cannot be erased.

How do you find it?

Start with records that leave a trail:

• bank or FPX transfers to an exchange
• exchange or wallet apps on a shared phone or computer
• tax records that mention digital assets
• emails or SMS about deposits, logins or price alerts

Signs your spouse may be hiding crypto

Watch for transfers to an exchange followed by silence about the money. A new hardware device, unexplained cash withdrawals or a second phone can also be signs.

A spouse may move coins to a friend’s wallet or claim the passwords are lost. Note the dates and amounts. Coins moved shortly before or during the divorce can still be counted.

How do you get the records?

Both spouses must disclose all their assets honestly, including crypto. Ask for:

• full exchange statements and transaction history
• deposit and withdrawal records
• bank records showing money sent to an exchange
• the public addresses of any personal wallets, so balances can be checked

If your spouse refuses, a lawyer can ask the court to order disclosure.

How is crypto valued?

Prices can swing sharply in a day, so the valuation date matters. Agree a fixed date, such as the settlement date or a date the court sets. Record the balances and the market price on that day.

Value each coin separately. The settlement should also say who bears any rise or fall in price between the valuation date and the transfer.

How is crypto divided?

There are two common ways:

• transfer the coins from one wallet to the other
• sell them and split the ringgit

A transfer keeps the asset but needs careful handling. Coins sent to a wrong address cannot be recovered, so test with a small amount first. Selling gives clean cash but fixes the price on the day of sale.

Selling may have tax effects. Check with a licensed tax adviser or LHDN before you sell.

Looking to engage a divorce lawyer? If you suspect crypto in your marriage and are unsure how to trace or value it, request independent lawyer contact via WhatsApp: Request Lawyer Contact. For general information, use our guides and tools.