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Can Assets Formed After Separation be Subject to Division Upon Divorce in Korea?

Q. Can assets formed after separation be subject to property division?

This is one of the most frequently asked questions by clients who receive in-depth counseling at our Law Office, Haeon.

Legally, assets formed after separation are supposed to be excluded from property division. This is because the court rules that "if there are special circumstances where changes in property relations between the period after the breakdown of the marital relationship and the conclusion of arguments are due to subsequent circumstances of one spouse and unrelated to the jointly formed property during the marriage, then the changed property is excluded from division."

There is a precedent where a husband who earned tens of billions of won (USD multi million) through stock options during the separation period did not have to divide any of those assets with his wife.

"However, whether assets are subject to division can change entirely depending on the attorney's ability to provide evidence."

This is because those "subsequent circumstances" are likely to have a causal relationship in the continuation of the marital relationship, and by proving that causal relationship, the assets can be included in the division.

[Actual Precedent]

During a separation period of about 3 years, the husband purchased an apartment in Korea under his own name. 

Later in the divorce proceedings, the husband argued that the apartment should not be included in the property division because:

1. He received no help from his wife (a housewife) in purchasing it, and

2. At the time of purchase, they were already separated, so his wife did not contribute to the formation and maintenance of those assets.

From the husband's perspective as the breadwinner with a housewife, this could seem reasonable, and the court may find it acceptable as well.

However, the wife argued that the cash the husband used to purchase the apartment was essentially joint marital property carefully saved during the marriage, simply changed in form as real estate. She successfully convinced the court of this, and the apartment was included in the property division.

[Applying This to Your Divorce Case in Korea]

Therefore, if the inclusion of assets formed after separation becomes an issue:

1. The party wanting to exclude those assets must work with a divorce attorney to prove the independent formation process after separation to demonstrate they are "subsequent circumstance" assets.

2. The party wanting those assets included must aggressively argue through an attorney that the assets are merely a changed form of pre-existing joint marital property from the marriage.

Which Family Law attorney in Korea should you consult with?

The attorney that other lawyers trust to handle their own divorce cases. 

The attorney that opposing lawyers refer their own familys to.

This is what Law Office Haeon is.

1) The Lawyers' Family Law attorney – Haeon

The fact that lawyers in Korea entrust their own or their family’s cases to Haeon is proof of our expertise. Even lawyers with no prior personal connection often come to us based on our established reputation within the legal community. We are the lawyers' family law attorney.

2) All Our Attorneys are Seasoned Professionals

Haeon's family law team consists entirely of senior attorneys who passed the bar exam between 2010-2012 and have years of experience practicing family law. This ensures our attorneys have the necessary expertise.

3) In-House CPA for Sophisticated Asset Valuation 

Properly valuing a spouse's business interests is crucial in property division cases. However, only a handful of major law offices in Korea have in-house CPAs specializing in business valuation and forensic accounting - services that can cost millions or even tens of millions of won when retained separately.

Haeon has a consulting CPA who previously worked at a top-3 conglomerate of Korea and KPMG Accounting Firm. Our CPA partner provides sophisticated valuation, fraud investigation and transaction advisory services at a reasonable cost to protect our clients' interests.

4) English Interpreter Ready

At Haeon, we have an in-house interpreter who previously served as an English interpreter for the ROK Army and U.S. Army, working alongside them on joint operations. Even if your Korean language skills are limited, making it difficult to fully explain your situation, our interpreter ensures you can communicate seamlessly during your consultation. We bridge the language gap so you can get the legal guidance you need.

In times of crisis, everyone claims to be the best. But the truly superior attorney proves it through results. Haeon has the sophisticated expertise to deliver what you need.

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The Complete Guide to Divorce Litigation in Korea