South Korea includes crypto in divorce settlements

Married couples in South Korea can now divide cryptocurrency assets during divorce proceedings, as clarified by law firm IPG Legal. 

The firm explained that under South Korean law, both tangible and intangible assets, including digital currencies like Bitcoin, are recognised as marital property and subject to division. 

According to the South Korean Civil Act, either spouse can request the division of marital assets during divorce, with cryptocurrencies now officially included. 

The clarification comes after a 2018 Supreme Court ruling that categorised virtual currencies as property due to their economic value. 

As a result, any cryptocurrency acquired during the marriage is considered part of the shared estate. 

For spouses who are aware of their partner’s crypto holdings, the court can initiate a “fact-finding investigation” to determine the value of the assets. 

Due to blockchain’s transparent nature, tracking cryptocurrency transactions is more straightforward than traditional financial assets, as blockchain records are immutable. 

In addition to blockchain tracking, financial records such as bank withdrawals and other investigative methods can help uncover hidden cryptocurrency holdings. 

Couples may decide to either liquidate the crypto assets before dividing them or split the tokens directly. 

In one notable case in New York, a woman discovered that her husband had hidden 12 Bitcoin (CRYPTO:BTC) worth around $500,000 during their divorce proceedings. 

A forensic accountant helped reveal the undisclosed crypto assets. 

This case signals the growing role of digital assets in divorce settlements and how legal systems are adapting to include them in financial disputes.