We have conducted an in-depth study of the magnetic phase due to a spinodal decomposition of the BCC phase of a CrFe-rich composition. This magnetic phase is present after casting (arc melting) or water quenching after annealing at 1250 degrees C for 24 h but is entirely absent after annealing in the interval 900-1100 degrees C for 24 h. Its formation is favored in the temperature interval ca 450-550 degrees C and loses magnetization above 640 degrees C. This ferromagnetic-paramagnetic transition is due to a structural transformation from ferromagnetic BCC into paramagnetic sigma and FCC phases. The conclusion from measurements at different heating rates is that both the transformation leading to the increase of the magnetization due to the spinodal decomposition of the parent phase and the vanishing magnetization at 640 degrees C are diffusion controlled.