South Korean law now allows spouses to claim cryptocurrency and Bitcoin during divorce proceedings and treat them as marital property.
Married couples in South Korea can now divide their cryptocurrency holdings during divorce proceedings, according to a law firm specializing in the country’s legal system.
South Korean law firm IPG Legal has clarified the law regarding the consideration of cryptocurrencies among marital assets in divorce cases. In response to a common question from clients, the firm explained that under South Korean law, both tangible and intangible assets can be divided in a divorce:
“According to Article 839-2 of the Korean Civil Code, upon divorce in Korea, either spouse can request the division of marital property accumulated during the marriage.”
The company noted that a 2018 ruling by South Korea’s Supreme Court confirmed that cryptocurrencies and virtual assets are considered property due to their economic value as intangible assets.
South Korea considers cryptocurrencies as intangible assets
Therefore, any cryptocurrency acquired during the marriage can be considered part of the marital property in South Korea. A spouse who knows about his or her partner’s cryptocurrency trading wallet can ask the court to issue a “fact finding” to determine the value of their cryptocurrency holdings.
Keeping track of crypto investments is easier than traditional cash, considering that blockchain technology saves all transactions and does not allow outside parties to modify or delete entries.
Bank withdrawal records and other forensic investigations can also uncover unknown sources of cryptocurrency holdings.
Related: UK government proposes bill to clarify legal status of cryptocurrencies
Partners can choose to cash out their cryptocurrency holdings before the split, or take a share of the tokens outright.
Investigators find hidden Bitcoin in New York divorce case
The growing use of cryptocurrencies in the financial sector has led to an increasing number of divorce cases involving digital assets around the world.
During a New York couple’s divorce proceedings, the wife hired a forensic accountant to uncover her husband’s hidden Bitcoin holdings.
Wife Sarita discovered that her outgoing husband had failed to declare 12 BTC (worth about $500,000) stored in an undisclosed crypto wallet.
"I never thought about it because we hadn't discussed it together or invested in it together. It was really shocking to me," she added.
