[Digital Today reporter Jinju Hong] In Russia, which records one of the world’s highest divorce rates, cryptocurrencies are emerging as a new variable in divorce lawsuits. Unlike tangible assets such as cars or real estate, digital assets are difficult to prove and to verify ownership of, complicating the process of dividing marital property.

On March 5 (local time), blockchain outlet BeInCrypto reported that the issue began with a 2020 legal amendment. Through the revision, Russia recognized cryptocurrencies as intangible assets, effectively placing digital assets including bitcoin (BTC) in the category of jointly formed marital property.

But unlike tangible assets, cryptocurrencies are not easy to prove even exist. Olga Dovgilova (올가 도빌로바), managing partner at Russian law firm Dovgilova&Partners, explained in an interview with Russian outlet Gazeta that while ownership of an apartment can be proven with documents, cryptocurrencies first require proof that the assets exist.

The issue becomes more complex when only one spouse manages the cryptocurrency. If the other spouse does not know the wallet password or has no account access, it can be difficult even to confirm the size of the assets. For assets held on foreign exchanges in particular, the platform has no obligation to provide information to Russian courts, making legal proceedings more difficult.

The anonymity of cryptocurrencies is also a major obstacle. Because it is hard to identify the actual owner from a blockchain address alone, it is often difficult to determine precisely which assets should be divided.

Russian politics is also moving to address such a legal vacuum. Igor Antropenko (이고르 안트로펜코), a member of Russia’s State Duma, introduced an amendment to the Family Code to clearly define cryptocurrencies as joint marital property.

Under the amendment, digital assets acquired during marriage are considered jointly owned property. By contrast, cryptocurrencies acquired before marriage or received as a gift during marriage are recognized as personal property.

Experts, however, say that even if the bill passes, resolving the issue will not be easy. Problems remain, including proving whether cryptocurrencies exist, jurisdiction over foreign exchanges, and the difficulty of tracking assets due to anonymity.

Experts expect that as cryptocurrencies spread as investment and asset-storage tools, disputes over dividing digital assets in divorce lawsuits will arise more frequently.