South Korea has now allowed the division of cryptocurrencies in marital splits. A couple, seeking divorce can now appeal in the court to divide their virtual assets in the country.
Interestingly, the growing accumulation of digital assets in South Korea has made it a top consumer across the globe. In such a case, the inclusion of crypto assets in divorce proceedings makes it much easier for couples to holdfast their investments.
South Korea Allows Crypto Division In Marital Splits
According to the official statement of the country, in South Korea, after a divorce, either spouse may ask for a split of the assets acquired during the marriage under Article 839-2 of the Korean Civil Act.
Any “property” acquired during the marriage, including both material and immaterial possessions, is covered by this clause. As an intangible asset with recognized economic worth, virtual assets such as Bitcoin are also considered “property,” according to a recent ruling by the Korean Supreme Court
To put it briefly, this means that any cryptocurrency obtained by a spouse during a marriage is seen to be a part of the Korean marital estate.
In terms of how bitcoin is actually divided by Korean courts after a divorce, there are two main approaches, the couple can either cash out and sell it at the current market value.
Or as an alternative, the couple might decide to split up the cryptocurrency and keep any holdings they have, depending on how much it is currently worth.
Crypto Inclusion In Marital Splits In Tandem With Growing Userbase
South Korea’s decision to have crypto be a part of divorce settlements is a direct result of the growing number of people in the country who hold the asset.
A Statista analysis states that about 10% of South Koreans invested in cryptocurrencies during the peak of Bitcoin prices in the first half of 2021, more than double the percentage from the previous year when the nation experienced its first cryptocurrency bubble.
Based on estimations, the cryptocurrency market in South Korea is the third largest globally. In August 2021, South Korean cryptocurrency exchanges accounted for over 9% of the global market, although the Korean Won remains one of the top five currencies used for Bitcoin trading.