Divorce and the Digital Wallet: Uncovering Cryptocurrency in Pennsylvania Equitable Distribution

By Gregory T. Moro, Esq.

In a traditional divorce, the "asset map" used to be straightforward. We looked for deeds to real estate, bank statements from local branches, 401(k) balances, and perhaps the Kelley Blue Book value of the family cars.

But in 2026, the financial landscape has shifted. Wealth is no longer just physical; it is increasingly digital.

For attorneys and clients alike, the rise of Cryptocurrency (Bitcoin, Ethereum) and Non-Fungible Tokens (NFTs) has introduced a new frontier to family law. In Pennsylvania, where courts divide marital property based on "equitable distribution," these digital assets present unique challenges in discovery, valuation, and division.

The Blockchain Paradox: Why "Hidden" Assets Are Harder to Hide Than You Think

Before diving into legal strategy, it is helpful to understand the technology itself. Many people assume cryptocurrency is a "black box" where money disappears without a trace. The reality is often the exact opposite.

Cryptocurrency runs on the Blockchain—a decentralized, digital ledger that records every single transaction ever made. Think of it as a checkbook register that is publicly available to the entire world and, crucially, cannot be edited or deleted.

This creates a paradox: while crypto can be "anonymous" (because it doesn't list the owner's name, just a string of code), it is also permanent.

This is the key to our legal strategy. We don't need to find every single transaction; we just need to find the "thread." Once we link a specific wallet address to your spouse, the Blockchain reveals the entire history of that money—every deposit, every withdrawal, and every transfer—forever. It is a forensic accountant's dream, provided you know where to look.

The Discovery Phase: Unmasking the Money

In Pennsylvania divorce litigation, "Discovery" is the formal process where we exchange information and documents. When cryptocurrency is involved, standard requests for "bank accounts" or "investments" are often too vague. A savvy spouse can honestly answer "No" to owning stocks while holding millions in Bitcoin.

To close these loopholes, Moro & Moro utilizes highly specific discovery tools tailored to the digital age. We don't just ask if you have it; we ask for the technical proof.

1. Targeted Interrogatories (The Questions We Ask)

We go beyond general questions to demand the specific technical details that allow us to verify holdings. Our interrogatories request:

• Wallet Addresses: We ask for the "Public Keys" for all holdings.

• Exchange Accounts: A complete list of all exchanges used (e.g., Coinbase, Kraken, Gemini, Binance).

• Mining & Staking: Details on any hardware used to "mine" new coins or interest earned from "staking" assets, which may count as income for support calculations.

2. Request for Production (The Documents We Demand)

Documentation is the bedrock of equitable distribution. We demand production of:

• The "Fiat" Bridge: Cryptocurrency almost always starts as traditional cash. We scrutinize bank statements specifically for transfers to known crypto exchanges or payment processors like MoonPay.

• The Tax "Smoking Gun": Since 2019, the IRS Form 1040 has included a specific question regarding virtual currency. A "Yes" checked on a tax return is a sworn statement to the federal government that digital assets exist, making it nearly impossible for a spouse to deny it in family court later.

• Exchange Records: We request the full transaction history (CSV files) from any exchange accounts. This shows us not just the current balance, but the trade history, crucial for determining if marital funds were dissipated during the separation.

3. The "Hardware Hunt"

Not all crypto is online. Large amounts are often stored on "Cold Wallets"—physical devices that look like innocent USB drives but function as digital bank vaults.

We instruct our clients to look for devices like Ledgers or Trezors (a physical device that securely stores your crypto's private keys offline). Finding one of these devices is often the critical clue that leads to the discovery of significant undisclosed assets. If these devices exist, we can request a physical inspection or a forensic image of the device during discovery.

4. Subpoenas to Third Parties

If a spouse is uncooperative, we do not stop at their word. Most major exchanges are US-based and compliant with subpoenas. We can often bypass an uncooperative spouse and demand records directly from the exchange to reconstruct the financial picture ourselves.

The Volatility Problem

Once we find the assets, the next hurdle is valuation. Pennsylvania law requires us to value marital property as of the date of separation or the date of distribution.

With traditional stocks, the price might fluctuate a few percentage points in a month. With Bitcoin or Altcoins, the value can swing 20% or more in a single day. This volatility creates a high-stakes environment for negotiation. If you agree to take the house (a stable asset) while your spouse keeps the crypto (a volatile asset), the fairness of that deal could evaporate in hours. We work to structure settlements that account for this risk, often suggesting "in-kind" distribution (splitting the actual coins) rather than trading them for cash assets.

Protecting Your Financial Future

If you are going through a divorce in the Danville or Bloomsburg area and suspect your spouse holds digital assets, you cannot rely on traditional discovery methods alone. You need legal counsel that understands the technology behind the money.

At Moro & Moro, we understand that modern wealth isn't always kept in a vault. We have the experience to ensure that the "Digital Wallet" is opened, counted, and fairly divided.

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About the Author

Gregory T. Moro is a seasoned litigator with over three decades of experience advocating for clients in both civil and criminal matters. A founding partner of Moro & Moro, Attorneys at Law, based in Pennsylvania, Mr. Moro has built a reputation for courtroom excellence, particularly in complex appellate practice and high-stakes litigation.

Mr. Moro’s legal acumen is highlighted by his admission to the Supreme Court of the United States, as well as the U.S. Federal Court for the Third Circuit (Middle District) and the courts of the Commonwealth of Pennsylvania. His appellate work has established significant legal precedents in Pennsylvania, including successful arguments in cases such as Commonwealth v. Crossley and Commonwealth v. Stone, which reinforced constitutional protections and procedural rights.

He earned his Juris Doctor from the University of Dayton School of Law and graduated cum laude from the University of Scranton. Mr. Moro is an active member of the National Association of Defense Lawyers and the Pennsylvania Association of Defense Lawyers.

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