South Korea has made a significant stride in recognizing cryptocurrency as a legitimate asset during divorce proceedings. This landmark decision means that digital assets like Bitcoin can now be divided between separating couples.
Blockchain Technology Enhances Transparency.
The ruling is a testament to the growing acceptance of cryptocurrencies and the potential of blockchain technology to enhance financial transparency. Blockchain’s public ledger allows for the tracking of cryptocurrency transactions, making it more difficult for individuals to hide assets.
How Crypto Assets Are Divided
When couples decide to divorce, they can now include their cryptocurrency holdings in the marital estate. The court will then determine how these assets should be divided. Options include:
- Cashing Out: Selling the cryptocurrency and dividing the proceeds.
- Direct Split: Distributing the cryptocurrency tokens directly between the parties.
Forensic Investigations Aid in Asset Discovery
If one spouse suspects that the other may be hiding cryptocurrency assets, the court can order forensic investigations. These investigations can involve examining blockchain records, bank statements, and other financial documents to uncover undisclosed digital wealth.
South Korea’s decision to recognize Bitcoin as divisible property aligns with its broader efforts to promote financial transparency. This move is expected to have a significant impact on divorce proceedings and could set a precedent for other countries considering similar legislation.