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JULIE MICHAELI Boutique Law Firm

Julie Michaeli Boutique Law Firm
Leading boutique firm in family law, inheritance and intergenerational wealth transfer.
With unique expertise in cases involving crypto assets.

Crypto in Family Law, Inheritance & Legal Planning

Legal handling of crypto assets in divorce, inheritance, wills and lasting powers of attorney, combining experience in family and inheritance law with a legal, technological and practical understanding of digital assets.

Crypto in Divorce

Tracing, concealment, protecting rights, valuation and division.

Crypto in a divorce is an asset like any other asset built up during the marriage, and it is usually included in the balancing of resources between the spouses. The difference is practical. Cryptocurrency does not appear on an ordinary bank statement, it can be held in a private wallet registered to no one, and it can be moved within minutes. In these cases, timing and the quality of the information gathered usually decide the outcome.

In which cases legal help is needed

  • You suspect your spouse holds Bitcoin or other coins and is not disclosing them.
  • You know there was an investment in crypto, but not where the assets are held or how much they are worth.
  • One side claims the assets were lost, sold or transferred to someone else.
  • Both sides acknowledge the assets but disagree on their value or how to divide them.

The practical problem specific to crypto

  • Suspected hidden crypto wallets. Assets can be hidden in a cold wallet (a physical device), a software wallet or an account on a foreign exchange. It is important to look into the suspicion early, before the other side realizes the issue is on the table.
  • Finding signs of purchases and transfers. Bank transfers to crypto exchanges, credit card charges, correspondence, tax filings and the purchase of a hardware wallet are often the starting point. From there it is possible to examine the transactions on the blockchain itself, which is public.
  • Orders for disclosure and preservation of assets. The Family Court can order the disclosure of documents and information and, where appropriate, grant interim relief to prevent assets from being moved until the proceedings end. Such a request has to be well founded and drafted to match how crypto assets are actually held.
  • Valuation and the relevant date. The law sets a date that determines which assets are included in the balancing. The value of the coins on that date can differ greatly from their value when the division actually takes place, and the choice of valuation date has a direct financial effect.
  • Division in kind or a cash balance. The coins themselves can be divided between the spouses, or one side can keep them and pay the other their share in money. Each option carries different consequences for risk, tax and timing, and the choice should be an informed one.
  • Volatility between separation and division. Between the separation and the end of the proceedings, the value of the asset can rise or fall sharply. It is worth agreeing in advance, in an agreement or a court decision, who bears that risk and what happens to the asset in the meantime.
  • Bringing in a blockchain or digital forensics expert. When transactions need to be traced on the network or findings need to be presented to the court, a professional expert opinion is required.

How I help legally

I review the existing material, identify what indications we have and what is missing, and build the legal route to obtain the information: demands for disclosure, questionnaires, applications for court orders, or negotiation when the other side cooperates. I then handle the valuation and division stage, in a divorce agreement or in court, so that the division is carried out in practice and does not stay on paper.

When an outside technology expert is needed

When blockchain transactions need to be analyzed, linked wallets identified, less common assets valued, or an expert opinion submitted to the court. In these cases I work together with Shay Davidov, and where needed an outside digital forensics expert is brought in as well.

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Crypto in Inheritance

Locating assets, wallet access, preserving the assets and transferring them to the heirs.

Crypto inheritance raises a problem that most other assets do not have: the legal right to the asset and the practical ability to reach it are not the same thing. Heirs can receive an inheritance order or a probate order and still be unable to open the wallet, because access depends on a private key or a recovery phrase (seed phrase) that only the deceased knew.

In which cases legal help is needed

  • You know the deceased held cryptocurrency, but there is no access to it.
  • There is a concern that someone else, a relative or a partner, holds the access details and may move the assets.
  • The heirs disagree about the wallet, its value or how to divide it.
  • The assets are held on an exchange, in Israel or abroad, that requires legal documents to release the account.

The practical problem specific to crypto

  • What to do when the deceased is known to have held coins, but there is no access. The first step is to collect every piece of information available: devices, documents, backups, correspondence and exchange account details. Do not try to break into or restore a wallet without advice, because a wrong step can cause permanent loss.
  • The status of the assets as part of the estate. Crypto assets are part of the estate in every respect. They should be included in the list of estate assets and in the division between the heirs, according to the will or the law.
  • An inheritance or probate order versus the technical ability to reach the wallet. The order allows the heirs to approach the exchange or the body holding the asset. When the assets are in a private wallet, the order alone will not open it, and combined legal and technical work is needed.
  • Preserving evidence and preventing transfer by someone else. If there is a concern that someone holds the access details, it is possible to apply to the court for interim relief and to keep the devices and documents as evidence.
  • Appointing an estate administrator or trustee. In an estate that includes crypto, especially where there is a dispute, appointing an administrator allows orderly handling of the assets, including keeping and realizing them, until the division.
  • Disputes between heirs over a digital wallet. Disputes usually concern who will hold the access details, whether to sell or divide in kind, and at what value. A clear arrangement agreed between the heirs saves long proceedings.

How I help legally

I guide the heirs from filing the application for an inheritance or probate order, through mapping the crypto assets and approaching the exchanges, to the division between the heirs. Where there is a dispute or a risk to the assets, I handle the applications to the court and the conduct of the proceedings.

When an outside technology expert is needed

When the assets are held in a private wallet, when wallets need to be identified from devices or backups, or when the coins need to be transferred securely to the heirs. This work is done together with Shay Davidov and, where needed, an additional technology expert.

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Crypto in Wills

Legal instructions, an access mechanism and separating the will from the keys.

A will that includes crypto needs different planning from an ordinary will. The will decides who receives the assets, but it is not the place to keep the access details. A will is filed with the Registrar of Inheritance Affairs and reaches the heirs and sometimes other parties, so a private key written in it is exposed to anyone who sees it.

In which cases legal help is needed

  • You hold Bitcoin or other digital assets and want to make sure they reach the people you chose.
  • Your assets are spread across several wallets and exchanges.
  • You want to divide the assets between several heirs, or leave them to someone who does not know the field.
  • Your existing will was written before you bought crypto and does not mention it.

The practical problem specific to crypto

  • How to pass on the rights without writing the private key in the will. The will describes the assets and the heirs, and the access details are kept separately, in a mechanism built for that purpose.
  • Separating the legal instructions from the access mechanism. The access mechanism can include, for example, a sealed document deposited with a trusted party, splitting the access details between several people, or dedicated technical tools. The choice depends on the size of the holdings and on who is meant to receive them.
  • Choosing who will receive or manage the assets. The heir is not always the right person to handle the wallet. The will can set out who will manage the assets and on what terms.
  • Division between several heirs. The will should state whether the coins will be divided in kind or sold and the proceeds divided, and who is responsible for doing so.
  • Volatility, realization and tax. The value of the assets when the will is written can be very different from their value at the time of death. The instructions should stay fair when the value changes, and the tax consequences of realizing the assets should be considered, with a tax adviser where needed.
  • Updating the arrangement when the wallet or exchange changes. Changing wallets, moving to another exchange or buying new coins means checking that the mechanism still works. It is therefore worth building an arrangement that can be updated without changing the will itself every time.

How I help legally

I draft the will and the instructions for the crypto assets, and at the same time build with you the access mechanism that will be used only when it is needed. The aim is that during your lifetime control and security stay with you, and that afterwards the heirs can actually receive the assets.

When an outside technology expert is needed

When the access mechanism includes a technical solution, such as a multi-signature wallet or splitting the recovery phrase, or when backups need to be checked. The technical part is built together with Shay Davidov.

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Crypto in a Lasting Power of Attorney

The attorney's powers, managing the assets in the event of loss of capacity and securing the access details.

Crypto in a lasting power of attorney is a subject that is rarely addressed, although the risk is real. If the owner loses capacity and was the only one with access to the wallet, the assets still exist but no one can use them, not even to pay for the owner's care. A lasting power of attorney lets you decide in advance who will act for you in property matters, and it can include instructions specific to digital assets.

In which cases legal help is needed

  • You hold crypto assets and no one else knows about them or knows how to access them.
  • You are making a lasting power of attorney and want it to cover your digital assets.
  • A family member has lost capacity and is known to have held crypto assets.

The practical problem specific to crypto

  • Does the attorney know the crypto assets exist? An attorney who does not know about the assets will not look for them. The power of attorney, or a document attached to it, should record that they exist without revealing the access details.
  • Which actions the attorney will be allowed to take. You can decide whether the attorney may only keep the assets safe, or also act on them, and within what limits.
  • How to allow access without revealing keys in advance. The aim is that the attorney can reach the assets only once the power of attorney takes effect, and not before.
  • Keeping the cold wallet, seed phrase and two-factor authentication safe. It should be planned where the device, the recovery phrase and the authentication codes are kept, and how the attorney will reach them without weakening security.
  • Whether assets may be sold, converted or transferred. These actions change the composition of the assets and the level of risk. It is worth deciding in advance whether they are allowed, in what circumstances and to what extent.
  • Adding advance directives, a trustee or a technical adviser. The power of attorney can include instructions on how you want the assets managed, and can bring in a person with technical knowledge to assist the attorney.
  • Preventing a situation where the asset exists but cannot be reached in the event of loss of capacity. This is the purpose of the whole arrangement: that the assets keep serving you and your family even if you lose capacity.

How I help legally

I draft a lasting power of attorney suited to your assets, including the instructions for the crypto assets, and handle every stage up to its deposit with the Administrator General. When the power of attorney takes effect, I also guide the attorney in carrying it out.

When an outside technology expert is needed

When the way access details are stored and passed to the attorney at the right time needs to be planned, or when the attorney needs to carry out actions in the wallet. Shay Davidov is involved in these cases.

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The professional framework with Shay Davidov, Lawyer

To provide a professional, comprehensive response tailored to each case, I work in collaboration with Shay Davidov, a lawyer with deep knowledge and experience in crypto and blockchain, with a technological and practical understanding of how digital assets operate and how to perform the actions required with them.

Combining my legal experience in family and inheritance law with his legal, technological, and practical expertise in crypto lets us provide a complete framework — from identifying the issue and building the right legal solution, through its practical implementation on the crypto assets themselves, to handling complex matters within legal proceedings. In suitable cases, Shay Davidov also prepares legal opinions on crypto that are submitted to the court.

Julie Michaeli, Lawyer

Legal representation in the case

A family and inheritance lawyer for more than a decade. Advises and represents clients in divorce, inheritance, wills, lasting powers of attorney and guardianship, and leads the legal handling of the case with the client, the other side and the court.

Shay Davidov, Lawyer

Legal and technological experience in crypto

Has in-depth knowledge and experience in crypto and blockchain, with a technical and practical understanding of how digital assets work and how to carry out the actions they require. In suitable cases he prepares legal opinions on crypto that are submitted to the court.

Common questions about crypto in divorce, inheritance and legal planning

Is crypto included in the division of assets in a divorce?

As a rule, yes. Cryptocurrency acquired during the marriage is an asset like any other and is examined together with the other assets. The practical questions are how to find it, at what date to value it and how to divide it.

I suspect my spouse is hiding Bitcoin. What should I do?

Do not confront your spouse before getting advice, and keep documents already lawfully in your possession, such as bank statements and correspondence. Do not access your spouse's devices or accounts, because evidence obtained that way can be used against you. At our meeting we will look at what can be requested from the court.

We have an inheritance order but no password to the wallet. Are the assets lost?

Not necessarily. If the coins are held on an exchange, you can approach it with the order and the required documents. If it is a private wallet, the recovery phrase or a backup needs to be searched for in the deceased's devices and papers. Do not attempt recovery without advice.

Can I write my wallet password in my will?

It is not recommended. A will is filed with the Registrar of Inheritance Affairs and is seen by various parties. It is better to describe the assets and the heirs in the will and keep the access details in a separate mechanism.

Can a lasting power of attorney cover crypto assets?

Yes. A lasting power of attorney for property matters can also apply to digital assets, and it can include instructions on keeping them safe, the actions allowed and how they are accessed.

What is the difference between coins on an exchange and a private wallet?

On an exchange, a company holds the assets for the customer, so it can be approached through legal proceedings. In a private wallet, only the person holding the key can move the assets, so tracing and planning are completely different.

Do I need to understand crypto to get in touch?

No. It is enough to know or suspect that digital assets exist. We will gather and make sense of the technical information together.

The first step
is a conversation

Send a message here, give me a call, or text me directly. I respond to everyone. And if you're not sure yet whether I'm the right person for your situation. That's exactly what the first call is for.

Phone 054-225-2082
Office 6 HaMada St., Herzliya Pituach