Married couples in South Korea can now divide cryptocurrency holdings during divorce proceedings, according to a law firm specializing in the country’s legal system.
South Korean law firm IPG Legal clarified the law of the land regarding the consideration of cryptocurrencies in marital assets during divorce cases. Responding to common questions from clients, the firm explained that under South Korean law, both tangible and intangible assets can be divided during a divorce:
“Under Article 839-2 of the Korean Civil Act, either spouse may request a division of marital assets accumulated during the marriage upon the divorce in Korea.”
The firm pointed to 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.
South Korea considers crypto as an intangible asset
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.
Investigators find hidden Bitcoin in New York divorce
The growing use of cryptocurrency in finance has led to more divorce cases involving digital assets worldwide.
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.
“It was never even a thought in my mind because it’s not like we were discussing it or making investments together. It was definitely a shock,” she added.
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