Cryptocurrency and Bitcoin holdings are currently being recognized as marital assets in divorce cases, according to a local law firm in South Korea. The implication of this is that couples that get divorced can divide their crypto assets the same way they do with other assets they accumulate. during the marriage.
IPG Legal, the South Korean law firm, explained that the law deems both physical and intangible assets—like cryptocurrency—as part of a couple’s shared property as under South Korean law, specifically Article 839-2 of the Korean Civil Act, either spouse can request that the assets they collected during the marriage be divided during a divorce.
South Korea’s Supreme Court ruled that cryptocurrency and other virtual assets have economic value and should be treated as property, in 2018, depicting that any cryptocurrency acquired during the marriage is part of the marital estate and can be divided between the spouses.
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Furthermore, because blockchain technology records all transactions and cannot be altered, it become easier to trace cryptocurrency than cash, hence if one spouse suspects that their partner has holdings in cryptocurrency, they can ask the court to investigate and decipher how much their partner owns.
The alternatives the couples have is either to sell the cryptocurrency and divide the money, or they can share the tokens directly.
Although highlighted in South Korea, the issue of cryptocurrency in divorces has spread to countries like America. A woman who discovered her husband had hidden Bitcoin worth about $500,000 hired a forensic accountant to track down the secret crypto holdings, which the husband hadn’t declared during their divorce proceedings.
Overall, cryptocurrency is massively becoming common in finance as it is showing up in divorce cases all over the world.
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