When crypto has to be counted and traced
In a divorce, the parties and their attorneys need to know which crypto accounts exist, what each held at the agreed date, and how coins moved between accounts. In an estate, the executor needs an inventory of the decedent’s accounts and the holdings at the date of death.
Both start with the same work: collecting exports and statements, matching transfers, and documenting holdings and cost basis with sources. Elena prepares the records; legal, tax, and valuation decisions stay with your attorney, CPA, or appraiser.
What the record package includes
| Deliverable | What it helps the reviewer do |
|---|---|
| Account and wallet inventory | See every exchange account, wallet, and address in scope, with the source behind each. |
| Holdings at the agreed date | Review units held per asset and account on the date of separation, the date of death, or another agreed date, with the price source noted. |
| Transfer trail | Follow movements between accounts and to outside addresses, with transaction IDs and unexplained items flagged. |
| Cost basis and holding period records | Check acquisition dates and costs by lot where records exist, with gaps listed. |
| Open-items list | Know which evidence is missing and which questions need a decision. |
Why cost basis matters when crypto is divided
According to IRS Publication 504, there is generally no recognized gain or loss on a transfer of property between spouses or incident to divorce, and the spouse who receives the property generally takes the transferring spouse’s adjusted basis. The publication also says the transferring spouse must give sufficient records to determine the adjusted basis and holding period.
So two allocations of equal market value can carry different cost basis. The record package shows the basis and holding period behind each lot, so your attorney and CPA can see what each side is receiving.
Estates and gifts need different records
- Inherited crypto. IRS Publication 551 says the basis of inherited property is generally its fair market value at the date of death, or on the alternate valuation date if the estate’s representative chooses it. The package documents holdings and the price source on that date.
- Gifted crypto. For gifts, the recipient’s basis generally starts from the donor’s adjusted basis, with a different rule for losses when the value at the time of the gift is lower. The IRS virtual currency FAQs add that without documentation of the donor’s basis, the basis for figuring gain is zero, so the donor’s purchase records matter.
Which date and which rule apply is a decision for the executor, attorney, or CPA. The package gives them the supporting history.
Access and security
The work uses exports, statements, and public wallet addresses. I never ask for seed phrases, private keys, or wallet signatures. If an estate cannot access a wallet, the inventory records what is known about it; recovering access is not part of this service.
Tracing works from the accounts, files, and addresses provided. It documents what those records show; it is not an investigation of undisclosed assets.
Scope and starting price
Start with a records review from $75 USD: an inventory of the sources and a written plan for the package. The tracing package is then quoted in writing before work begins, based on the number of accounts, years, transaction volume, and the dates required.
Not included: legal advice, tax advice, return preparation, formal valuation appraisals, and expert testimony.
Divorce and estate crypto records FAQ
Can you find crypto that my spouse has not disclosed?
No. The package documents what the provided accounts, exports, and addresses show, including transfers to outside addresses. Investigating undisclosed assets is a matter for your attorney.
Do you need private keys or seed phrases?
No. The work uses exports, statements, and public addresses. Elena never asks for seed phrases, private keys, or wallet signatures.
Does the package include a valuation for court or for the estate?
It documents holdings and the price source for the agreed date. A formal appraisal, where one is required, is a separate engagement.
Can an attorney or executor engage you directly?
Yes. Describe the accounts, the dates required, and who will review the package; the scope is agreed in writing before work begins.
For attorneys and executors
If a matter involves crypto, start with the dates you need, the known accounts and addresses, and the format your team prefers. The package can be prepared for review by the attorney, executor, and the client’s CPA together.
See the illustrative record package for how ledger entries connect to source rows and open questions.
Sources
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