Cryptocurrencies Now Part of South Korean Divorce Settlements

• Crypto is now allowed in the division of South Korean divorce settlements.
• The couple can decide whether to liquidate the currency at its current market value or retain the holdings in the market.
• An increasing number of countries are considering cryptocurrency as a property.

Cryptocurrencies will now be divided as part of divorce settlements in South Korea, according to South Korean law firm IPG Legal.

The law not only sees crypto as part of the marital estate, but it also allows spouses aware of crypto in the estate to request a “fact-finding investigation” to discover its value.

Divorces in South Korea Include Crypto

The legal firm said that under Article 839-2 of the Korean Civil Act, either spouse can request a division of marital assets accumulated during the marriage.

“This provision encompasses any ‘property’ acquired during the marriage, including both tangible and intangible assets,” IPG Legal wrote in a blog post.

During the divorce, the couple can decide whether to liquidate the cryptocurrency at its current market value or retain the crypto holdings within the market.

“The choice between these methods should consider the volatility of cryptocurrency markets and the long-term price outlook of the asset in question,” IPG wrote. “In many cases, negotiations lead to a creative means to resolve asset division issues.”

The law also allows the court to issue a probe or obtain a divorcee’s financial records to verify the amount of cryptocurrency they hold.

Cryptocurrency and Divorce Around the Globe

Cryptocurrency is generally widely allowed in the division of divorce settlements as more countries consider the currency as a property, but its inclusion often raises complex legal issues due to the unique nature of these assets.

The U.K. , the U.S., and many other countries treat crypto in divorce the same way they treat other financial assets like bank accounts and housing.

China, despite its tough stance on the crypto market, first recognized crypto as a property in 2019.

The country’s 2019 ruling clarified that although crypto trading is highly restricted in China, individuals still deserve ownership rights over their crypto holdings.

As with other marital assets, how cryptocurrency is divided depends on the laws of the specific jurisdiction and the circumstances of the case.