Husband fined for purchasing cryptocurrency

In the recent case of Lescosky & Durante [2020] FamCAFC 179, a Husband was fined $54,000.00 for purchasing cryptocurrency to the value of $180,000.00.

The parties had been engaged in contested property settlement proceedings. The Husband set up two new bank accounts and transferred the sum of $180,000.00 over an 11 day period, which was utilised to purchase the cryptocurrency.

The issue with the purchase of the cryptocurrency by the Husband, was that this breached (“contravened”) a Court Order. The Court Order provided that:

  • the Husband was restrained from transferring or otherwise disposing of any asset exceeding $1,000.00 in value (save in the ordinary course of business); and
  • prior to transferring or otherwise disposing of any asset exceeding $1,000.00 in value, the Husband was to provide seven (7) days written notice of his intention to deal, to the Wife’s solicitors.

The Court proposed that “payment of the fines be made by the Husband, namely from his entitlement in the property settlement proceedings.”

This case serves as a reminder as to the powers available to the Court, where there is a contravention of a Court Order.

If you have any queries in relation to Court Orders, or require assistance with a property settlement, please call us on 07 3278 1888.

Documents You Need To Settle Outstanding Property Matters

After you separate and before negotiations can commence to settle property matters you will need your former spouse or partner to provide you with all relevant information regarding the value of the assets and liabilities, and his or her financial position.

The Family Law Rules provide that parties have a legal obligation to provide the details of all relevant financial information and documentation that is or has been in the possession, or under the control of the party disclosing the document  and is relevant.

Therefore you will need to request copies of the following types of documents:

  1. Three market appraisals  (from three different real estates) in relation to any real property that is owned solely or jointly with any other person;
  2. A market appraisal and full description of all motor vehicle/s or vessels owned;
  3. A market appraisal of any other asset owned;
  4. Taxation returns and assessments for the three (3) most recent financial years;
  5. Superannuation documents for superannuation interests;
  6. In relation to any business, company, corporation, partnership or trust you will need financial statements for each, tax returns and assessments, bank statements or other financial institution statements of account (credit and debit) for the three (3) most recent years; a copy of any trust deed, corporate constitution or partnership agreement;
  7. In relation to liabilities (debts) including but not limited to home loans, vehicle loans, personal loans, credit cards or any other loan, loan account statements for the three (3) most recent years, loan document or contract, loan application form for each debt;
  8. Documents regarding financial contributions (including value of assets) made by you at the commencement of cohabitation, inheritances/ gifts or any compensation payments received during cohabitation or expected to be received in the future, any purchase or disposal of property in the 12 months prior to and since separation, any increase or reduction of liabilities since separation;
  9. A list of all bank accounts (or credit union/ building society accounts), details of account numbers, passbook and bank statements for the three (3) most recent financial years, and current balance of each account, records of any investments (stocks or shares), details of any social security pension or payment details, details/ records of any long service leave accrued, records relating to life assurance or disability insurance;
  10. List any other relevant documentation.