South Korean law now allows married couples to divide cryptocurrency holdings during a divorce settlement.
This follows a 2018 ruling by South Korea’s Supreme Court, which classified cryptocurrencies as property due to their economic value.
Married couples in South Korea can now include cryptocurrency holdings in the division of assets during divorce proceedings. This comes after the clarification by the South Korean law firm IPG Legal, which explained that under the country’s legal framework, both tangible and intangible assets, such as cryptocurrency, are subject to division when a couple parts ways.
According to Article 839-2 of the Korean Civil Act, either spouse can request the division of marital assets accumulated during the marriage, which now includes cryptocurrencies like Bitcoin (BTC). A landmark ruling by the South Korean Supreme Court in 2018 confirmed that virtual assets like cryptocurrency are recognized as property, owing to their economic value.
The Process of Investigating and Dividing Crypto Holdings
If a spouse suspects their partner has cryptocurrency holdings, they can request a court investigation to assess the value of these assets. Blockchain technology makes it easier to track crypto investments compared to traditional assets, as all transactions are recorded permanently. Financial records like bank withdrawals can also be used to uncover hidden cryptocurrency holdings.
When dividing these assets, couples have two main options. They can either cash out the cryptocurrency and split the proceeds, or they can directly share the cryptocurrency itself, based on its current market value. Settlement options also allow for more flexibility, including payment plans or offsets of other assets.
This update is a notable step in adapting legal processes to the growing influence of digital assets in modern financial life and might ensure fair distribution in the divorce settlement.
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