South Korea Allows Cryptocurrency Division In Divorce Proceedings

According to Cointelegraph, married couples in South Korea can now divide cryptocurrency holdings during divorce proceedings. South Korean law firm IPG Legal clarified that both tangible and intangible assets, including cryptocurrencies, can be divided during a divorce under South Korean law. The firm explained that under Article 839-2 of the Korean Civil Act, either spouse may request a division of marital assets accumulated during the marriage upon divorce in Korea. This follows a 2018 ruling by South Korea’s Supreme Court, which confirmed that cryptocurrency and virtual assets are considered property due to their economic value as intangible assets. As a result, any cryptocurrencies acquired during the marriage can be considered part of the Korean marital estate. Spouses who are aware of their partner’s crypto exchange wallets can have courts issue a “fact-finding investigation” to ascertain the value of their holdings. Tracking crypto investments is easier than traditional cash, considering that blockchain technology preserves all transactions and does not allow external factors to modify or delete entries. Bank withdrawal records and other forensic investigations also allow for the discovery of unknown sources of crypto holdings. Partners can choose to either cash out the crypto holdings before splitting or share the tokens directly. The growing use of cryptocurrency in finance has led to more divorce cases involving digital assets worldwide. For instance, during a New York couple’s divorce proceedings, the wife appointed a forensic accountant to uncover her husband’s hidden Bitcoin (BTC) holdings. The wife, Sarita, found that her soon-to-be ex-husband failed to declare 12 BTC — worth roughly $500,000 — stored in an undisclosed crypto wallet. She expressed her surprise, noting that it was never a thought in her mind as they were not discussing or making investments together.