New measures recognize digital assets as marital property, ensuring fair division during proceedings.
In a significant development, South Korea has introduced new measures allowing the division of cryptocurrency holdings during divorce proceedings. This change reflects the increasing importance of digital assets in modern financial landscapes.
South Korean law now recognizes both tangible and intangible assets, including cryptocurrencies, as marital property. This means that during a divorce, couples can divide these digital assets just like any other property. The legal foundation for this change is rooted in Article 839-2 of the Korean Civil Act, which permits either spouse to request asset division upon divorce.
The move to include cryptocurrencies in divorce settlements follows a 2018 Supreme Court ruling. This ruling classified virtual assets as property due to their economic value, setting a precedent for their inclusion in legal proceedings. As a result, cryptocurrencies are now treated similarly to traditional assets like real estate or stocks.
To ensure fair division, spouses can request a court investigation to determine the value of cryptocurrency holdings. This process involves assessing the current market value of the digital assets. Partners have the option to either cash out their share or directly divide the tokens, depending on their preference.
Blockchain technology plays a crucial role in this process by providing transparency and traceability of crypto assets. This technology helps in tracking the ownership and transactions of cryptocurrencies, ensuring a fair and clear division during divorce settlements.
