Divorce in Korea is a legal process that is relatively clear in terms of procedure; however, it becomes complex in addressing the post-divorce consequences, particularly the division of marital property between the spouses. The Korean civil law system safeguards not only legal rights but also seeks to balance considerations of morality, social contributions, and family interests.

I. Legal basis and general principles

Korean law provides under Article 839-2 of the Civil Code (민법 제839조의2) that, upon divorce, either party may request the court to divide the property accumulated during the marriage. Such a request must be made within two years from the date on which the divorce becomes effective, in order to prevent protracted litigation and to ensure financial stability for the parties following the divorce.

The division of property is not based on a fixed proportion, but rather on the actual contribution of each party—including both financial contributions (such as income and investments) and non-financial contributions (such as household work and childcare). The Family Court will consider the specific circumstances of each case to render an appropriate decision, based on the principle of substantive fairness rather than a mere equal division in form.

II. Classification and determination of property

Korean law classifies property in divorce into three principal categories:

1. Actual property – 적극재산

Comprising all assets of economic value, including:

• Real estate: houses, land, apartments
• Financial assets: savings, shares, insurance, pensions, severance pay
• Movable assets: cars, valuable household goods, electronic equipment

The majority of such assets are formed during the course of the marriage and, regardless of in whose name they are registered, if they result from joint contributions or serve the family’s livelihood, they are deemed to constitute marital property (공동재산).

For example, a house registered in the husband’s name but purchased with the salaries of both spouses and used as the family residence shall be regarded as marital property.

2. Separate property – 특유재산

These are assets belonging to the individual ownership of a spouse, including:

• Property acquired prior to marriage
• Property inherited or individually gifted during the marriage
• Property purchased entirely with separate assets and not intended for common purposes

However, if such separate property is used for common purposes or its value increases through joint efforts (for example, when used as the marital residence or improved with common funds), the incremental value may be deemed marital property, depending on the extent of the other party’s contribution.

A common case is when a house is inherited but both spouses invest in its renovation; in such circumstances, the added value resulting from the renovation may be subject to division.

3. Marital debts – 소극재산

Marital debts are the financial obligations borne by the spouses at the time of divorce, including:

• Joint debts: such as mortgage loans, consumer loans incurred for family living expenses, or bank mortgages,…
• Separate debts: obligations arising from personal spending, speculation, gambling, or individual investments not made for the benefit of the family

The court will determine which debts are joint and which are separate. In the case of joint debts, such obligations shall be deducted from the total actual property before division. As for separate debts, the spouse in whose name the loan was incurred shall bear sole responsibility.

For example, if the husband borrows money to invest in stocks without the wife’s consent and incurs losses, such debt shall be deemed separate and excluded from the division.

III. Factors affecting the proportion of division

The court does not base its decision on a fixed formula but applies a flexible principle based on the following factors:

1. Extent of economic contribution: The spouse who contributed a higher income during the marriage may hold a stronger financial position. However, this does not necessarily mean that such a spouse will be absolutely entitled to a larger share.
2. Non-economic labor contributions: Housekeeping, childcare, and household management are all recognized as “indirect contributions”. A full-time homemaker for ten years may be recognized by the court as entitled to approximately 40–50% of the marital property.
3. Duration of the marriage: The longer the marriage, the more the division tends toward balance; whereas in short-term marriages (less than one year), the proportion may lean significantly in favor of the spouse with greater financial contributions.
4. Conduct leading to the breakdown of the marriage: If one party is responsible for the divorce due to serious misconduct such as adultery, domestic violence, or intentional concealment of assets, the court may reduce that party’s share in the division.
5. The need to protect the children and the weaker party: If one party has primary custody of the children, has no income, or has lost working capacity, the court will prioritize allocating a larger share of the property to ensure the minimum standard of living for the children or the weaker party.

IV. Valuation and timing of property assessment

• Valuation date: The law stipulates that the valuation date shall be the date of the conclusion of the proceedings, rather than the date of filing for divorce. This rule is intended to prevent the titled party from deliberately delaying or otherwise manipulating the asset value during the course of litigation.
• Valuation method:

• With respect to real property: The value of real property shall be determined based on the market price at the time of trial. The Court generally refers to the estimated price provided by KB Bank (KB국민은행) or relies on an appraisal report issued by a professional valuation entity in the event of a dispute.

• Virtual assets (cryptocurrency, unsold shares): Such assets must be valued as of a specific point in time, based on their prevailing market price and liquidity.

• Assets registered in the name of third parties: Where a spouse registers assets under the name of parents or children in an attempt to evade division, the Court may nonetheless consider such arrangements to constitute a sham transaction if there is evidence demonstrating that the assets were jointly created by the spouses.

V. Procedural requests and legal strategy

• Voluntary division by agreement The parties may negotiate and execute a written agreement on the division of assets in connection with the divorce settlement. Once approved by the Court, such agreement shall have the same legal effect as a judgment.
• Request through the Court: If no agreement is reached, either party may file a petition for asset division within two years from the effective date of the divorce. Such a petition may be submitted separately or consolidated within the divorce proceedings.
• Measures for preservation of assets: During the divorce preparation stage, if there is suspicion that the other party may dissipate, sell, or transfer assets, one may petition the Court to issue a freezing order to safeguard legal rights and interests.
• Evidence to be prepared:

• Property documents, savings books
• Bank statements, employment contracts
• Purchase invoices, repair expenses
• Family journals, child-rearing receipts, etc.

VI. Conclusion: Strategy for protecting rights after divorce

Asset division in Korea is a field that encompasses not only legal considerations but also ethical and emotional aspects. Whether you are an income earner or a homemaker, you are entitled to have your contributions recognized. However, to maximize the protection of your rights:

• It is essential to understand the applicable laws and time limits 
• Collect sufficient evidence prior to filing for divorce
• Seek in-depth legal advice from a lawyer well-versed in Korean family law

If you are in the process of preparing for divorce or involved in an asset dispute in Korea, taking early action, adopting a clear strategy, and thoroughly preparing documentation are decisive factors.

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