Splitting up is hard to do—especially when you have to share your Bitcoin with your ex!
That’s right. In a groundbreaking move, South Korea is now allowing married couples to divide cryptocurrency holdings during divorce proceedings.
This new development, clarified by IPG Legal, a South Korean law firm specializing in the nation’s legal system, marks a shift in how digital assets are handled in family law cases.
IPG Legal explained that, according to South Korean regulations, both tangible and intangible assets accumulated during marriage can be split when a divorce takes place.
The firm cited Article 839-2 of the Korean Civil Act:
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.”
Back in 2018, the South Korean Supreme Court ruled that digital currencies hold economic value and qualify as property, cementing their status as intangible assets.
This decision means that any crypto acquired during a marriage is now considered part of the marital estate. If one spouse knows their partner’s crypto exchange wallet details, they can ask the court to initiate a “fact-finding investigation” to assess the value of the holdings.
Tracking these assets is often simpler than finding traditional cash, thanks to blockchain technology, which logs all transactions permanently. This immutable ledger helps investigators identify hidden digital assets without the risk of tampered records.
Additionally, bank withdrawal records and forensic investigations can reveal previously undisclosed crypto investments, making it harder for one partner to hide their holdings.
Also Read: Crypto Winter Looms As Exchanges Face New Costs In South Korea
In such cases, couples have two options: either liquidate the crypto holdings for an easier division or split the tokens directly.
The rise of cryptocurrency has also impacted divorce cases worldwide. For example, during a divorce proceeding in New York, a woman enlisted a forensic accountant to track down her husband’s hidden Bitcoin.
She uncovered that he had secretly stashed away 12 BTC—worth roughly $500,000— in an undisclosed wallet.
It was never even a thought in my mind because it’s not like we were discussing it or making investments together. It was definitely a shock.”
This trend shows how cryptocurrency is reshaping financial settlements in divorces, as courts increasingly recognize digital assets as legitimate property with economic value.
