Originally published on: October 10, 2024
In a groundbreaking move, married couples in South Korea can now divide their cryptocurrency holdings as part of divorce settlements, thanks to a recent clarification by law firm IPG Legal. Under South Korean law, both tangible and intangible assets, including digital assets like cryptocurrencies, can be divided during divorce proceedings.
This legal stance follows a 2018 ruling by the Supreme Court of South Korea that recognized cryptocurrencies and virtual assets as property due to their economic value as intangible assets. This means that any cryptocurrencies acquired during marriage can be considered part of the marital estate.
Tracking crypto investments during divorce proceedings is relatively straightforward compared to traditional cash holdings, as blockchain technology maintains a transparent record of all transactions that cannot be altered or erased by external influences. In cases where one spouse may be unaware of the other’s crypto holdings, bank withdrawal records and forensic investigations can reveal undisclosed sources of cryptocurrency wealth.
Partners going through a divorce can choose to liquidate their crypto holdings before dividing the assets or opt to directly share the digital tokens. The increasing use of cryptocurrency in financial transactions has led to a rise in divorce cases involving digital assets worldwide.
In a recent high-profile case in New York, a woman discovered that her husband had failed to disclose 12 BTC, valued at approximately $500,000, in an undisclosed crypto wallet during their divorce proceedings. The wife, shocked by the revelation, noted that cryptocurrency investments were never discussed or made jointly, making it a surprising find.
As cryptocurrency continues to gain prominence in financial markets, the inclusion of digital assets in divorce settlements underscores the need for transparency and disclosure in marital financial matters. Stay informed about the latest developments in cryptocurrency and its legal implications to navigate potential challenges effectively.
—
Invest in your knowledge with critical insights to enhance your understanding of investment opportunities and trading strategies by subscribing to the Markets Outlook newsletter. Receive exclusive content every Monday to refine your trading skills and stay ahead of market trends. Subscribe now to gain valuable insights and stay informed about the ever-evolving world of finance.
