South Korea has approved equal splitting of digital assets accumulated in marriage following divorce. As expected, traders, especially investors boasting significant crypto stores, will receive the latest development amid mixed feelings. The uncertainties stem from the tendency to lose part of their hard-earned valuables to ex-partners.
Clarifying the latest stance, remarked: “Under Article 839-2 of the Korean Civil Act, either spouse may request a division of marital assets accumulated during the marriage upon the divorce in Korea. This provision encompasses any “property” acquired during the marriage, including both tangible and intangible assets.”
South Korea Classifies Cryptocurrency as Intangible Assets
In its review constitution, South Korea has deemed crypto assets intangible valuables. Consequently, marriage partners can apply for equal splitting of such assets. Considering the blockchain nature of crypto assets, it is relatively easy to estimate an individual's crypto holdings.
Hence, divorced partners who know about their spouse’s crypto exchange wallets can request the court to issue a “fact-finding investigation.” The probe will help estimate the exact worth of their partner’s crypto stores to facilitate equal splitting.
Meanwhile, the divorced parties can liquidate the crypto holdings at their current price before division. Similarly, they could split the crypto assets and hold them based on their current valuation.
Possible Implications?
Chances abound that the new law could heighten divorce rates in the region and as well discourage unmarried individuals from tying the knot. Consequently, marital issues would skyrocket in the coming years.
Meanwhile, reports disclosed that a similar scenario occurred in New York, where about 12 Bitcoins (BTC) were discovered to be in the custody of a spouse, unknown to the partner. The digital currencies worth approximately $500,000 were divided among them.
