IPG Legal, a South Korean law firm specializing in the country’s legal system, has stated that married couples in South Korea can now include cryptocurrency holdings in dividing assets during divorce proceedings.
The firm clarified how cryptocurrencies are treated as part of marital assets in divorce cases. Addressing common client inquiries, the firm explained that South Korean law allows for the division of both tangible and intangible assets, including digital currencies, during a divorce.
“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,”
the firm noted.
They referenced a 2018 ruling by South Korea’s Supreme Court, which established that cryptocurrency and virtual assets qualify as property and recognize their economic value as intangible assets.
According to the firm, any cryptocurrencies acquired during the marriage can be classified as part of the marital estate in South Korea. The firm further noted that spouses aware of their partner’s crypto exchange wallets can request the courts conduct a “fact-finding investigation” to determine the value of these assets.
The firm explained that tracking cryptocurrency investments is generally more straightforward than traditional cash transactions. Blockchain technology preserves all transactions immutably, preventing any external alteration or deletion of entries.
Additionally, the firm highlighted that bank withdrawal records and other forensic methods can help uncover undisclosed sources of cryptocurrency holdings.
Partners can liquidate the cryptocurrency holdings before dividing them or distribute the tokens directly.
According to a recent Social Capital Markets (SCM) study, South Korea is quickly becoming a cryptocurrency hub. The report ranked the country third globally with a score of 73.5, based on five key parameters: clarity of laws, capital gains tax rate, corporate income tax rate, the number of registered crypto companies, and the prevalence of businesses accepting crypto. With over 376 active crypto firms, South Korea plays a significant role in the global crypto industry. The study noted that the country’s newly implemented regulatory framework and ongoing support for blockchain innovation further solidified its position as a leading hub.
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