Formal recognition of digital assets

The Law Society has welcomed the formal recognition of digital assets as personal property in the upcoming Property (Digital Assets etc) Act which received Royal Assent last week. For the first time, digital assets will be formally recognised in law putting them on the same footing as traditional categories of personal property.

The Property (Digital Assets etc) Act aims to formally recognise digital assets as a distinct form of property offering clearer rules for identification, valuation, and enforcement in family cases and helping to provide a clearer framework for family law practitioners dealing with these complex modern assets.

We are seeing increasing digital assets in divorce settlements to include cryptocurrencies such as Bitcoin, NFTs (non-fungible tokens) and digital art. These form part of the “matrimonial pot” and are treated like other investments under the principle of fair division despite challenges with valuation volatility, tracing, and concealment.