South Korean Divorces Now Include Cryptocurrency in Asset Splits

In South Korea, divorcing couples can now split cryptocurrency holdings as part of their asset division, a law firm specializing in the country’s legal matters has confirmed.

IPG Legal, a South Korean law firm, clarified that under local law, both tangible and intangible assets, such as cryptocurrencies, can be divided during divorce. Citing Article 839-2 of the Korean Civil Act, the firm explained that any wealth accumulated during the marriage, including digital assets, falls within the scope of marital property.

The 2018 Supreme Court ruling in South Korea classified cryptocurrency as property, giving it value as an intangible asset.

This means that cryptocurrencies acquired during the marriage can be divided, and if one spouse is aware of the other’s crypto holdings, a court-ordered investigation can be launched to determine their value. Tracking digital assets is often simpler than traditional financial assets due to blockchain technology’s transparency, which records all transactions permanently. Forensic tools, along with bank records, also help uncover hidden crypto assets.

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In some cases, like a recent divorce in New York, investigators were able to trace hidden Bitcoin holdings after one partner discovered that their spouse had failed to disclose 12 BTC, valued at approximately $500,000, in an undeclared crypto wallet.

With the growing integration of cryptocurrency in global finance, digital assets are becoming more common in divorce settlements worldwide.