Displaying items by tag: Bali Prenup

Monday, 26 February 2018 10:11

Foreign Marriage Registration

Getting marry abroad is a romantic decision to make, among other considerations taking into account. Indonesian who married abroad must pay attention to certain registry requirements imposed by the prevailing laws. Registration of marriage must be conducted with the authorized local marriage registry. When registration with the local registry completed, marriage reporting must be made with the nearest Indonesian Embassy or Consulate. This is a temporary reporting requirements until you return to Indonesia.

There are two (2) prevailing laws governing overseas marriage legalization and reporting i.e. 1974 Marriage Law and 2006 Administration of Population. The first one stipulates that overseas marriage must be legalized and reported within 12 months since the date of your return to Indonesia. The other one stipulates that you must legalize and report the marriage within 30 days since your return, and it has been implemented under the 2008 Government Regulation in April 2008. Both laws are conflicting but the latter is the particular law governing this particular circumstances.

Civil registries all over Indonesia are in the process of transition to the new law. Therefore, it is a wise thing to do to pay attention to the arrival date in your passport. Failure to meet the reporting requirements shall be fined for IDR 1,000,000 equivalent to about USD 100 Other civil registries categorized the failure of meeting the time frame as an "Important Event" which means only a district court may order the civil registry to record your overseas marriage.

You are required to obtain a court decree prior to legalize and record your marriage. You need to submit civil petition at the local district court.  Approximately within 30 days, and upon receipt of completed supporting documents, the court will set-up a hearing to cross-examining all the supporting evidence.  You may be required to provide two witnesses. Usually the hearing will only take place once. After the hearing, the court will issue a court decree to order civil registry to record your marriage. Based on the court decree, the civil registry will issue an STBLP (Surat Tanda Bukti Laporan Perkawinan/Marriage Reporting Certificate).

An STBLP is a very useful certificate. Your overseas marriage will not be legally recognized by the Indonesian laws. It is the same as if no marriage at all. No marriage means no divorce. Children born in the marriage shall be categorized as out of wedlock. Claiming Indonesian citizenship for your child born before August 2006 will require an STBLP, if you were married abroad. Furthermore, it will also take effect to the inheritance issues. It seems the 2006 enacted-law sending  a message the importance of marriage legalization and reporting by imposing more strict time frame. It is more likely people would fail to meet the 30 days reporting requirements as it is too short!

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.
 
****
 
Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

Tagged under
Monday, 26 February 2018 09:46

Post Marital Agreement in Indonesia

Postnuptial agreements, also known as post-marital agreements, are agreements entered into after a marriage has taken place. There are many reasons why a mixed-nationality married couple might wish to draw-up a postnuptial agreement. Among others, a couple that did not sign a prenuptial agreement before marriage may later determine that they want to have some sort of financial plan in place in the event of death or divorce. Additionally, a major change in the financial circumstances of the couple, such as a major career change or inheritance, may alter the financial landscape, requiring a change to the terms of the couple's existing prenuptial agreement to reflect their current wishes, such as the intention of purchasing property in Indonesia.
 
Indonesia’s 1974 Marriage Law only recognizes prenuptial agreements, ("prenup" for short), a written contract created by two parties before they are married. The 1974 enacted law only discussed the matrimonial agreement that must be drawn-up prior to marriage. Indeed, the law regarding the validity and enforcement of post-marital agreements is not well developed in Indonesia.
 
But if we dig a little bit deeper, Indonesian Civil Code provides a special provision concerning property division in the course of marriage. The postnup is a product of the ancient Civil Code. It’s been there for many decades. So, some couples have been using these provisions. It just that the postnup is not as popular as its related document, the prenup. In my personal opinion, the postnup is like a fine wine. It’s being kept in the dark, until it matures enough to become something you would like to have dinner with.
 
What’s Postnup?
 
First of all, a postnup is not a back-dated prenup. It is signed and dated after your marriage. When you’re married, you’re married. There’s no way you can turn the clock back after you are already married and get a prenup or even back-date a prenup. That would be illegal under Indonesian law! The harsh reality is that the courts tend to assume that a prenup is always valid, but they have the opposite reaction to the back-dated prenup. The assumption is, in the majority of cases, that this type of agreement is not valid.
 
You can’t find a postnup mentioned in the 1974 Marriage Law. Nevertheless, just because the Marriage Law doesn’t say anything about the postnup, it doesn’t mean it’s not legal.  It’s already exists in the Civil Code. This is can be the ultimate solution for mixed-couples in Indonesia who did not sign a prenuptial agreement before their marriage. This also may preserve the rights of the Indonesian to own property in Indonesia, even though they are married to a foreigner.
 
The postnuptial agreement may be useful to couples seeking to enter into a post marital agreement after a significant financial change or a period of marital conflict. It is signed and entered into in contemplation of an existing, ongoing, and viable marriage. This agreement allows married couples to legally pre-determine how property will be divided, if the couple divorces.
 
The postnup creates property separation in your marriage since the signing date, and therefore the community property regime, shall not exist any further. As for the property in existence prior to the postnup, you would need to determine what that encompasses. It has to be separated as well. Then, you need to appoint one spouse as the property holder.
 
Nevertheless, please take a note that signing a postnup is not the only phase required to create a separation of property during the course of your marriage. Your Indonesian lawyer needs to work on other legal issues such as taking prior legal measures to make sure of the legality of the postnup before it is signed by the husband and wife.
 
Legal Implications of the Postnup
 
Legal implications will occur due to property division in the course of the marriage in terms of the two parties in the postnup (i.e., husband and wife), the property in the marriage, and other possible related third parties. Both husband and wife shall be bound by the legal binding force in effect from the Postnup. As it is a legally binding contract, therefore it shall serve as the law between both contracting parties; husband and wife. This is in line with Article 1338 of the Civil Code stipulating that: “All contracts legally drafted shall serve as the law to the parties involved.”
 
The postnup also takes effect upon third parties. In regards to creditors, the further implementation must be specified in accordance with the time frame. Community property shall be liable to serve as collateral in the event a mortgage exists prior to the postnup date.  On the other hand, if one spouse gets a loan from a bank after the postnup date, his/her separate assets shall be in liability to any debts he/she might have created.
 
Postnup for Mixed-Marriage Couples
 
In accordance with Article 186 (1) of the Indonesian Civil Code, the wife may, in the course of marriage, request a division of assets, in the following circumstances: "...wife is in imminent danger of losing the security of her dowry and her entitlements pursuant to the law…, and also if ...  in the management of the community property, such property might be endangered." This is totally applicable to the circumstances in every no-prenup mixed-nationality married household in Indonesia. By marrying a foreigner, the Indonesian spouse will be precluded to own property, which is her/his right as an Indonesian citizen. Therefore, his/her entitlements to own property in Indonesia may be endangered.
 
There are many mixed-nationality married couples in Indonesia that did not sign a prenuptial agreement prior to their marriage. In the absence of a prenuptial agreement, by law, their marriage has joint property regime because the Marriage Law - automatically assuming joint property regime within their marriage. This means that either spouse would require consent from the other spouse for every transaction involving immovable property in Indonesia.
 
Consent is implemented if both parties co-sign every transaction document. In terms of a mixed-nationality marriage, such consent cannot be retrieved from the foreign spouse because a foreigner is not allowed to own property in Indonesia. An Indonesian will not be able to retrieve such consent from their spouse because the foreign spouse is not in the legal position to own the property in the first place. So, the Indonesian spouse is stuck. This is where a prenup is essential to prevent this dilemma.
 
Since there are many mixed-nationality couples without a valid prenup, then a postnup may be used as one of the options. Writing a postnup, just because you didn’t have a prenup, is not a routine document. Instead of creating an illegal back-dated prenup, I certainly think the postnup is legally worth considering.
 
Postnuptial agreements are most often used to settle financial matters, including property ownership in mixed-nationality marriages. The postnup is very useful when spouses failed to create a prenuptial but want to protect their assets. It is not something that is common in Indonesia because the law thinks that you should have gotten a prenup in the first place. Therefore, the requirements to establish a postnup are stricter than for establishing a prenup. The contract must be created with full disclosure of all assets, be entered into voluntarily by both parties, and have terms that are fair and equitable.
 
Why should you get a Postnup?
 
Because it is dated after your marriage and because it is a legal document. The postnup is about admitting that the Indonesian spouse did not realize that they needed a prenup in order to own property in Indonesia before they married a foreigner. It’s about being honest with yourself and to the public institution where the postnup will be registered. Back-dated prenups are about manipulating the facts of your marriage date, and the date when you signed the prenup.
 
Postnup are the most favorable choice for the difficult situation of having no prenup in the first place. Some mixed-nationality married couples have resorted to questionable measures, such as making purchases using fake ID cards, or risky purchases, such as buying real property using their relative’s name.  You may be trust them, but trust is not the only issue here.
 
The postnup is about making sure that you control your own property without have to rely on someone else’s mood. With the postnup, you have the power and the authority to make the purchase without being affected by the legal constraints.
 
What’s Your Marriage Like after the Postnup?
 
The postnup serves as the law for both contracting parties; husband and wife. After both of you signed the postnup, property shall be separated upon the legal effective date of the postnup. Both spouses shall be independent and will not require consent from the other spouse, including to conduct property transactions. The best part is the Indonesian spouse will no longer be affected by his/her foreign spouse. The rights of an Indonesian to own property are preserved as if you had a prenup from the beginning of your marriage.
 
Reinstatement of Community Property
 
You would use these proceedings, if you want to return to the joint property regime, because perhaps the laws may have changed. For example, the Indonesian spouse is no longer affected by being married to a foreigner regarding the ownership of property in Indonesia.
 
In the event where community property is reinstated, matters relating thereto shall be afforded the same status as that applicable prior to separation, without prejudice to the result of acts carried out by the wife which took place in the interim between separation and reinstatement. Agreement providing for reinstatement of community property by the spouses for any reasons other than those already specified shall be deemed void.
 
The community property which is dissolved by separation of assets may be reinstated with the consent of both spouses. The reinstatement of community property must be made public by both spouses. Third parties shall not be affected by the reinstatement until the public announcement has been made.
 
Endorsements from the Jakarta Higher Court
 
Recent developments related to the postnup have been very important. The latest updates from the Jakarta Higher Court regarding the marital agreement entered into after the marriage. The endorsement from the Higher Court is  subject to the following terms and conditions, among others:
  1. As long as the postnup entered into by husband and wife in accordance with Article 1338 Civil Code, then it serves as the law to both of them. Therefore, the parties in the postnup must  perform their rights and obligations as specified in their postnup. In the event one party fails to do so, then the other party may file a complaint to the court of law.
  2. Furthermore, the Jakarta Higher Court stipulates that the postnup must be dated with an actual date. So, why should you back-dating the prenup in the first place, while you can have an actual-date postnup and legally endorsed by the Higher Court?
  3. No need to record the postnup on your marriage certificate. Unlike the prenup, the postnup does not require registration at the marriage registry to take effect legally between husband and wife. The postnup automatically valid legally when you covenant and agree to execute its terms and conditions. This must be done freely and voluntarily and free from coercion, duress or pressure of any kind, and they have an adequate opportunity to read and study the postnup.
Legally Recognized by the National Land Registry 
 
In Indonesia, government agency responsible for the titles management of immovable properties in Indonesia is the National Land Registry (so called the BPN/Badan Pertanahan Nasional). Recently, our postnup has been recognized by the BPN. A mixed-marriage couple, a British husband and an Indonesian wife, they were married in July 1993. In the year 2008, she received an inheritance from her father, a house worth more than 15 bio IDR, but was unable to hold it because they didn’t sign any prenup. She nominated her older sister to hold the title of the house. In August 2015, the couple signed our postnup. It took a couple of months for transferring the title. In January 2016, the name of the Indonesian wife was printed on the house ownership certificate. The title of the house is Hak Milik (Freehold Title) and the transfer proceedings were conducted on the certificate of ownership (SHM/Sertifikat Hak Milik) by the BPN in South Jakarta.
 
So, the BPN recognized her rights as an Indonesian to hold the estate as it is vested by our postnup they signed during the course of marriage. This is of course a very good news for married couples without any prenuptial agreement in Indonesia. I do believe the married couples can thrive in owning the property even without a prenup, and I can say that our postnups have definitely been enriched with the recent developments.
 
I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.
 
****
 
Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

Tagged under

Postnuptial agreements, also known as post-marital agreements, are agreements entered into after a marriage has taken place. There are many reasons why a mixed-nationality married couple might wish to draw-up a postnuptial agreement. Among others, a couple that did not sign a prenuptial agreement before marriage may later determine that they want to have some sort of financial plan in place in the event of death or divorce. Additionally, a major change in the financial circumstances of the couple, such as a major career change or inheritance, may alter the financial landscape, requiring a change to the terms of the couple's existing prenuptial agreement to reflect their current wishes, such as the intention of purchasing property in Indonesia.

Indonesia’s 1974 Marriage Law only recognizes prenuptial agreements, ("prenup" for short), a written contract created by two parties before they are married. The 1974 enacted law only discussed the matrimonial agreement that must be drawn-up prior to marriage. Indeed, the law regarding the validity and enforcement of post-marital agreements is not well developed in Indonesia.

But if we dig a little bit deeper, Indonesian Civil Code provides a special provision concerning property division in the course of marriage. The postnup is a product of the ancient Civil Code. It’s been there for many decades. So, some couples have been using these provisions. It just that the postnup is not as popular as its related document, the prenup. In my personal opinion, the postnup is like a fine wine. It’s being kept in the dark, until it matures enough to become something you would like to have dinner with.

What’s a Postnup?

First of all, a postnup is not a back-dated prenup. It is signed and dated after your marriage. When you’re married, you’re married. There’s no way you can turn the clock back after you are already married and get a prenup or even back-date a prenup. That would be illegal under Indonesian law! The harsh reality is that the courts tend to assume that a prenup is always valid, but they have the opposite reaction to the back-dated prenup. The assumption is, in the majority of cases, that this type of agreement is not valid.

You can’t find a postnup mentioned in the 1974 Marriage Law. Nevertheless, just because the Marriage Law doesn’t say anything about the postnup, it doesn’t mean it’s not legal.  It’s already exists in the Civil Code. This is can be the ultimate solution for mixed-couples in Indonesia who did not sign a prenuptial agreement before their marriage. This also may preserve the rights of the Indonesian to own property in Indonesia, even though they are married to a foreigner.

The postnuptial agreement may be useful to couples seeking to enter into a post marital agreement after a significant financial change or a period of marital conflict. It is signed and entered into in contemplation of an existing, ongoing, and viable marriage. This agreement allows married couples to legally pre-determine how property will be divided, if the couple divorces.

The postnup creates property separation in your marriage since the signing date, and therefore the community property regime, shall not exist any further. As for the property in existence prior to the postnup, you would need to determine what that encompasses. It has to be separated as well. Then, you need to appoint one spouse as the property holder.

Nevertheless, please take a note that signing a postnup is not the only phase required to create a separation of property during the course of your marriage. Your Indonesian lawyer needs to work on other legal issues such as taking prior legal measures to make sure of the legality of the postnup before it is signed by the husband and wife.

Legal Implications of the Postnup

Legal implications will occur due to property division in the course of the marriage in terms of the two parties in the postnup (i.e., husband and wife), the property in the marriage, and other possible related third parties. Both husband and wife shall be bound by the legal binding force in effect from the Postnup. As it is a legally binding contract, therefore it shall serve as the law between both contracting parties; husband and wife. This is in line with Article 1338 of the Civil Code stipulating that: “All contracts legally drafted shall serve as the law to the parties involved.”

The postnup also takes effect upon third parties. In regards to creditors, the further implementation must be specified in accordance with the time frame. Community property shall be liable to serve as collateral in the event a mortgage exists prior to the postnup date.  On the other hand, if one spouse gets a loan from a bank after the postnup date, his/her separate assets shall be in liability to any debts he/she might have created.

Postnup for Mixed-Marriage Couples

In accordance with Article 186 (1) of the Indonesian Civil Code, the wife may, in the course of marriage, request a division of assets, in the following circumstances: "...wife is in imminent danger of losing the security of her dowry and her entitlements pursuant to the law…, and also if ...  in the management of the community property, such property might be endangered." This is totally applicable to the circumstances in every no-prenup mixed-nationality married household in Indonesia. By marrying a foreigner, the Indonesian spouse will be precluded to own property, which is her/his right as an Indonesian citizen. Therefore, his/her entitlements to own property in Indonesia may be endangered.

There are many mixed-nationality married couples in Indonesia that did not sign a prenuptial agreement prior to their marriage. In the absence of a prenuptial agreement, by law, their marriage has joint property regime because the Marriage Law - automatically assuming joint property regime within their marriage. This means that either spouse would require consent from the other spouse for every transaction involving immovable property in Indonesia.

Consent is implemented if both parties co-sign every transaction document. In terms of a mixed-nationality marriage, such consent cannot be retrieved from the foreign spouse because a foreigner is not allowed to own property in Indonesia. An Indonesian will not be able to retrieve such consent from their spouse because the foreign spouse is not in the legal position to own the property in the first place. So, the Indonesian spouse is stuck. This is where a prenup is essential to prevent this dilemma.

Since there are many mixed-nationality couples without a valid prenup, then a postnup may be used as one of the options. Writing a postnup, just because you didn’t have a prenup, is not a routine document. Instead of creating an illegal back-dated prenup, I certainly think the postnup is legally worth considering.

Postnuptial agreements are most often used to settle financial matters, including property ownership in mixed-nationality marriages. The postnup is very useful when spouses failed to create a prenuptial but want to protect their assets. It is not something that is common in Indonesia because the law thinks that you should have gotten a prenup in the first place. Therefore, the requirements to establish a postnup are stricter than for establishing a prenup. The contract must be created with full disclosure of all assets, be entered into voluntarily by both parties, and have terms that are fair and equitable. 

Why should you get a Postnup?

Because it is dated after your marriage and because it is a legal document. The postnup is about admitting that the Indonesian spouse did not realize that they needed a prenup in order to own property in Indonesia before they married a foreigner. It’s about being honest with yourself and to the public institution where the postnup will be registered. Back-dated prenups are about manipulating the facts of your marriage date, and the date when you signed the prenup.

Postnup are the most favorable choice for the difficult situation of having no prenup in the first place. Some mixed-nationality married couples have resorted to questionable measures, such as making purchases using fake ID cards, or risky purchases, such as buying real property using their relative’s name.  You may be trust them, but trust is not the only issue here.

The postnup is about making sure that you control your own property without have to rely on someone else’s mood. With the postnup, you have the power and the authority to make the purchase without being affected by the legal constraints.

What’s Your Marriage Like after the Postnup?

The postnup serves as the law for both contracting parties; husband and wife. After both of you signed the postnup, property shall be separated upon the legal effective date of the postnup. Both spouses shall be independent and will not require consent from the other spouse, including to conduct property transactions. The best part is the Indonesian spouse will no longer be affected by his/her foreign spouse. The rights of an Indonesian to own property are preserved as if you had a prenup from the beginning of your marriage.

Reinstatement of Community Property

You would use these proceedings, if you want to return to the joint property regime, because perhaps the laws may have changed. For example, the Indonesian spouse is no longer affected by being married to a foreigner regarding the ownership of property in Indonesia.

In the event where community property is reinstated, matters relating thereto shall be afforded the same status as that applicable prior to separation, without prejudice to the result of acts carried out by the wife which took place in the interim between separation and reinstatement. Agreement providing for reinstatement of community property by the spouses for any reasons other than those already specified shall be deemed void.

The community property which is dissolved by separation of assets may be reinstated with the consent of both spouses. The reinstatement of community property must be made public by both spouses. Third parties shall not be affected by the reinstatement until the public announcement has been made.

Endorsements from the Jakarta Higher Court

Recent developments related to the postnup have been very important. The latest updates from the Jakarta Higher Court regarding the marital agreement entered into after the marriage. The endorsement from the Higher Court is  subject to the following terms and conditions, among others:

  1. As long as the postnup entered into by husband and wife in accordance with Article 1338 Civil Code, then it serves as the law to both of them. Therefore, the parties in the postnup must  perform their rights and obligations as specified in their postnup. In the event one party fails to do so, then the other party may file a complaint to the court of law.
  2. Furthermore, the Jakarta Higher Court stipulates that the postnup must be dated with an actual date. So, why should you back-dating the prenup in the first place, while you can have an actual-date postnup and legally endorsed by the Higher Court?
  3. No need to record the postnup on your marriage certificate. Unlike the prenup, the postnup does not require registration at the marriage registry to take effect legally between husband and wife. The postnup automatically valid legally when you covenant and agree to execute its terms and conditions. This must be done freely and voluntarily and free from coercion, duress or pressure of any kind, and they have an adequate opportunity to read and study the postnup.

Legally Recognized by the National Land Registry 

In Indonesia, government agency responsible for the titles management of immovable properties in Indonesia is the National Land Registry (so called the BPN/Badan Pertanahan Nasional). Recently, our postnup has been recognized by the BPN. A mixed-marriage couple, a British husband and an Indonesian wife, they were married in July 1993. In the year 2008, she received an inheritance from her father, a house worth more than 15 bio IDR, but was unable to hold it because they didn’t sign any prenup. She nominated her older sister to hold the title of the house. In August 2015, the couple signed our postnup. It took a couple of months for transferring the title. In January 2016, the name of the Indonesian wife was printed on the house ownership certificate. The title of the house is Hak Milik (Freehold Title) and the transfer proceedings were conducted on the certificate of ownership (SHM/Sertifikat Hak Milik) by the BPN in South Jakarta.

So, the BPN recognized her rights as an Indonesian to hold the estate as it is vested by our postnup they signed during the course of marriage. This is of course a very good news for married couples without any prenuptial agreement in Indonesia. I do believe the married couples can thrive in owning the property even without a prenup, and I can say that our postnups have definitely been enriched with the recent developments.

Registration of the Postnups

On May 19, 2017, the Indonesian Ministry of Home Affairs issued a clarification of the Constitutional Court Decision No. 69 / PUU-XIII / 2015 dated October 27, 2016 by which Article 29 of the 1974 Marriage Law was declared unconstitutional. This clarification regarding the registration of postnuptial agreements is in the form of a letter concerning the Recording of Reports of Marriage Agreements No. 472.2 / 5876 / Dukcapil dated May 19, 2017 addressed to the Heads of the Departments of Population and Civil Registry in Regencies and Cities across Indonesia. This letter regognizes the legality of postnuptial agreements for separation of assets. The postnup agreement must be reported to the Marriage Registrar. This is the Civil Registry Office for non-Muslim couples and the KUA for Muslims.

The documents required to be submitted are:

  1. Photocopy of couple’s identity cards (KTP Elektronik);
  2. Photocopy of family card;
  3. Photocopy of notarial deed of marriage agreement that has been legalized by showing the original;
  4. Excerpts of marriage certificates of husband and wife. 

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

****

Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

Tagged under
Friday, 23 February 2018 15:52

Manfaat Perjanjian Pranikah Dibuat

Manfaat Perjanjian Pranikah Dibuat

Walaupun bagi sebagian orang perjanjian pranikah merupakan topik yang tabu dibicarakan dan banyak menuai pro kontra dari berbagai pihak, namun harus diakui bahwa ada banyak sisi positif yang bisa dipetik dari adanya perjanjian ini.

Beragam masalah yang timbul pada pernikahan yang akhirnya sering kali berujung pada perceraian membuat sebagian kalangan merasa perlu membuat perjanjian pranikah.

Prenuptial agreement atau lebih dikenal dengan sebutan perjanjian pranikah adalah perjanjian yang dibuat sebelum pernikahan dilangsungkan dan mengikat kedua belah pihak calon mempelai yang akan menikah. Perjanjian ini berlaku sejak pernikahan dilangsungkan dan isinya mengatur bagaimana harta kekayaan Anda berdua akan dibagi jika terjadi perceraian atau kematian dari salah satu pasangan.

Awalnya perjanjian pranikah banyak dipilih oleh kalangan atas yang memiliki warisan besar serta bagi duda atau janda yang hendak menikah lagi tapi ingin memberkan kekayaan pada anak dari hasil pernikahan sebelumnya. Keinginan orang untuk membuat perjanjian pranikah kian berkembang sejalan dengan makin banyaknya orang menyadari bahwa pernikahan merupakan sebuah komitmen.

Nikmati Manfaatnya

Dengan banyaknya kasus perceraian yang berujung masalah, tak ada salahnya jika kita mulai berpikiran terbuka terhadap fenomena perjanjian pranikah dan melihatnya dari sudut pandang yang berbeda. Adanya perjanjian pranikah justru diharapkan dapat memberikan batasan yang jelas mengenai apa yang harus dan tidak boleh dilakukan pasangan, sehingga kelangsungan pernikahan akan tercapai.

Lepas dari masalah pro dan kontra, sebenarnya cukup banyak manfaat positif yang didapat dari adanya perjanjian pranikah, antara lain bagi perempuan Indonesia yang menikah dengan lelaki WNA, dimana sebaiknya mereka memiliki perjanjian pranikah karena kalau tidak ia tidak akan bisa membeli tanah dan rumah atas namanya sendiri.

Akhir-akhir ini malah banyak pasangan yang lebih menitikberatkan hal lain diluar masalah finansial (pemisahan harta dan utang serta masalah pembiayaan anak-anak yang lahir dari hasil pernikahan tersebut) sebagai perjanjian pranikah, seperti kebebasan bekerja dan berkreasi termasuk disini menekuni olah raga, hobi, atau mengoleksi barang langka yang tergolong mahal yang dianggap mengganggu keuangan keluarga. Bahkan ada pula pasangan yang memasukkan soal kekerasan dalam rumah tangga (KDRT) sebagai bagian dari perjanjian pranikah.

Dengan berbagai pertimbangan, Anda dan pasangan tentu dapat menentukan sendiri perlu tidaknya perjanjian pranikah dibuat. Yang jelas, pastikan bahwa hal ini memberikan manfaat positif bagi Anda berdua dan tentunya dilegalisasi oleh hukum.

Sumber: Harian Kompas tanggal 9 Januari 2007.

****

I am Asep Wijaya, Managing Director of Wijaya & Co. Thank you for visiting my blogs and reading my posts.

 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found anywhere in this article nor in this website. 

Tagged under

Postnuptial agreement in Indonesia is 100 percent legal and recognized by the courts of law. In 2015, the Indonesia’s Constitutional Court issued a verdict saying that the marital agreement may be entered into before, after, and during the marriage. Many thinks that this ruling is a breakthrough verdict, but surprisingly, of course, it's not the first one to ever happened in Indonesia.

Long before the ground breaking verdict, courts in Indonesia have been come up with similar rulings. From Jakarta to Malang, from Makassar to Tanjung Pandang. All of them are saying the same thing: postnup is legal. The way they see it, it's a contract between two parties entered into freely, with voluntarily consent, and without any duress. 

I managed to get some court orders gathered from a few places in Indonesia, such from Malang, Tanjung Pandan, Makassar, North Jakarta, Central Jakarta, and of course South Jakarta. Their considerations in reaching the verdicts were pretty similar. The courts tends to think that even though the marital agreement may only be entered before and on the marriage date, but as long as it does not violate the rules, religious norms, and moral, the amendment of marital agreement may take place during the course of marriage. This is where they allow postnuptial agreement. Mutual consent, and as long as the contract does not jeopardizing the third party, the courts are welcome with the marital agreement after the marriage.

The other legal reasoning is because the Marriage Law in Article 29 allows amendment to the marital agreement. This does not contradicts with the other provision that postnuptial agreement is forbidden. Furthermore, our Civil Code recognised post-married contract  in Aricle 139, and therefore, they allow postnuptial agreement to legally take effect without any hesitation. 

The only hi-cough was we didn't have any prevailing rules regarding registration at the civil registries. This is in order to meet the requirement as imposed by the Marriage Law that a marital agreement must be registered at a marriage registry in order to take effect legally between the two spouses. As the holding from the court does not say anything about registering the postnup with a marriage registry, it does not prevent the postnup from taking a legal stand within our legal system. But luckily, the circular letter from the Ministry of Interior breaks the ice. Marriage registries all over Indonesia have been instructed to receive registration for postnuptial agreements, and issued a certificate as proof of a registration. This heals the hi-coughs.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Friday, 23 February 2018 11:01

Prenuptial Agreement in Indonesia

A Guide to Incorporate a Prenuptial Agreement in Indonesia Most people think of marriage as the ultimate emotional and spiritual bond. They are looking to a life of happiness. However, when faced with negotiating a premarital agreement, they realize that not only do they have to decide what will happen to them when they divorce or die, but thay they also have to negotiate these issues with their fiance(e). It's just not what people are thinking about when they are getting married. If you are foreign nationality and plan to marry an Indonesian spouse, you need to get a prenuptial agreement PRIOR to marriage. Considering foreigners are not allowed to have a property in Indonesia, and if you wish to take the quite sensible precaution of a prenuptial agreement for the purpose of protecting yourself and your properties in the event that one of you dies, a prenuptial agreement is a must-have choice.

The Agrarian Law stipulates that foreigner is not allowed to own property in Indonesia, and Indonesian who married to the foreigner will be precluded to own free-title property. The agrarian law refers to Indonesia's Marriage Law assuming joint property ownership in the marriage. Prenuptial agreement concerning separation of property in the marriage is the most possible solution to get around the issue.

The Indonesian government can, by law, take virtually everything away from the grieving party because they did not create such a protective document PRIOR to marriage. To avoid this trouble, it would be prudent to draft a prenuptial agreement complying with the Indonesian laws to ensure that your financial interest(s) will be up-held by the Indonesia court. As one of the Indonesian legal services working for family law cases, especially mixed-marriage cases, we will walk you through the proper procedures how the prenuptial agreement incorporated in Indonesia.

Legal AspectsThe 1974 Indonesian Marriage Law has a very simple provision of prenuptial agreement compared to the ancient Dutch Law, Civil Code. The law governing the prenuptial agreement only consist of one article. It stipulates that the agreement should be made prior to marriage. The agreement should be legalized by the marriage registry office. Civil Registry Office for Non-Moslem, and Office of Religious Affairs for Moslem.Both parties are free to determine the form of law, as long as abiding the law, religion, and moral consideration. The provision are indeed very general. The legislatures seem to let it so in order to make it flexible with the development of the religion, moral, and public order.

Other provision stipulates that the agreement can not be amended during marriage, except upon approval of both parties and do not cause disavantage to any third party.Person in Need of a PrenupConsider a prenuptial agreement if you suit with at least one of the following conditions: Person of foreign nationality wishing to marry to an Indonesian partner and wish to own property in Indonesia; Person who is bringing a lot of assets to the partnership, including all retirement account; Person who has his or her own business or is a partner in a company; Person on a fast career track who is likely to earn a hefty salary in the future; Person who has children from a prior marriage; Person who is paying for his or her spouse to get an advanced degree likely to result in significant future earnings. Making a Prenup Indonesian laws does not provide ready-made frameworks for prenuptial agreement. You and your Indonesian lawyer have more leeway to define your future legal relationship, although you are bound by law, religion, moral, and public order consideration in drafting the agreement.

Indonesian prenuptial agreement must be tailored to the particular needs of the spouses and sufficiently flexible to take into account changes in your future circumstances during the course of marriage. Beginning by collecting all the things you want to be included in the prenuptial agreement. Ask your Indonesian lawyer to draft the agreement and request for recommendation. But you need to take a note that the marriage property will be under your Indonesian spouse's name. Once again, foreigners of are not allowed to own a property in Indonesia. You just need to specify percentage of the property each spouse will get if the marriage was dissolved. Include in the agreement full disclosure of all assets and liabilities, including the value of each asset. Make sure that the terms of the agreement do not promote dissolution.

Keep all drafts of the documents by email so that there is  a record that you have reviewed every draft. Keep all the drafts, correspondence, and notes so that the file reflects the negotiations and the various resulting revisions. Name and number the drafts in consecutive order such as "draft number three". This record will be very helpful is the agreement is later contested.   After negotiating the agreement, make sure you understand its terms and the importance of abiding by them. An agreement followed by both parties is more likely to stand the test of time. Avoid commingling assets and to keep careful records. A qualified accountant and bookkeeper can assist you. Even if the agreement is set aside or revoked, careful bookkeeping will make it easier for the court to trace and will save you lots of money.

At Wijaya & Co, we provide client with prenuptial agreement questionnaire. The main purpose of this questionnaire is to gather facts and obtain client’s input on issues that should be incorporated into a prenuptial agreement. The questionnaire consists of the issues that should be considered when you enter into a prenuptial agreement. Some of you might not be ready to discuss every issue that listed on the questionnaire. Therefore, it is OK if you want the agreement is to be silent on the subject. When you are ready, the two of may sit down together, once again, to discuss the silent part(s). Legalized and Record the Agreement There are two registrations required for a prenuptial agreement. A premarital agreement must be recorded with the registrar’s office of the local district court, and marriage registry.

The agreement will take effect for the husband and wife when the marriage recorded at the Civil Registry or the Office of Religious Affairs and shall take effect against third parties upon the date of registration with the local district court where the marriage will take place. If the agreement is not recorded at the local district court, then the marriage will be considered as if there is no prenuptial agreement exists. Thus, your marriage will have joint-ownership in property. This is the same as if you don’t have a prenup.

Death to Either Party If your Indonesian spouse pass-away, you will have to transfer the property within one year. Transferring the property can be either sell it to other Indonesian or pass it to your children. Under 2006 Citizenship Law, children born into mixed-marriage will entitle to dual-citizenship. They can keep the two citizenships until the age of 18 years plus another 3 years to choose one. In the event they did not choose Indonesian citizenship; they will be treated as foreigner and therefore will not be able to hold the property any further. On the other hand, if the foreign spouse pass-away, the Indonesian can keep the property for good. Updating the PrenupIt is important to understand the need to keep the agreement up-to date.

Agreement should be designed to accommodate the passage of time and changes in  status, such as the birth of children, and increase or decrease in wealth, or the disability of either party. Since no agreement can take into account all possible eventualities, however, you need to review the agreement periodically, with an Indonesian lawyer, to keep it current.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts. 
 
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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us! 
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website. 

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Thursday, 22 February 2018 11:31

Marriage in Indonesia

Marriage registration in Indonesia can be done after fulfiling ten days waiting period. You must have the same religion in order to get marry in Indonesia. We don't recognize mixed religion registration. Any marriage performed according to the couple's religion affiliation is legal in Indonesia. For non-Moslem couples, after they performed religious ceremonies, they must register their marriage with the civil registry in order to make it legally recognized. Under the current law, it must be done at the same jurisdiction with their domicile. Otherwise, the civil registry will not be able to accept their marriage registration. As for Moslem couples, their marriage must be registered with the Kantor Urusan Agama (KUA). They will receive a passport-sized marriage book colored in brown and green. The English term for this government institution is Office of Religious Affairs. Marriages registered with the KUA is legal and recognized, even without registration with the civil registry.
 
The marriage ceremony can be done at the office of the marriage registry, or it can also be done at your place i.e. hotel, apartment. They can also come to your house. The marriage books or marriage certificate will be presented to you after the  ceremony. If you sign a marital agreement before the marriage, the details of your prenup shall also be printed on the marriage book/certificate. So is with the prenup, it will have the registration details from the Marriage Registry. This is to meet publicity requirements as set-out by the Marriage Law. The marital agreement must also be registered with a court. Both of registrations will be shown in your marital contract. You need to do this in order to create a legally binding marital contract, and a bonafide marriage. I strongly suggest you do so.
 
During the proceeding of the marriage, you may also conduct a child legalization. This involves the child birth certification to include his/her relationship with the biological father. Nowadays, they need you to supply a DNA test to support your parental claim. Two witnesses are required in order to support the birth registration of the child. At this point, you need to perform a court litigation. This is quite tricky situation. This may also involves citizenship issues if the alledged father is an Indonesian. The child birth certificate will show his/her nationality(ies). This is a civil document to prove the legal identity of the child. This is the last thing you want to mess up with.
 
As you can see, the marriage is the foundation of your life. It affects so many aspects in your life, and your loved ones. When you're doing things rights, and you're doing it the right way, you'll be fine. Everyone will be alright. Wijaya & Co can assist you in registering your marriage by going through the administrative procedures and government bureaucracy, so you don't have to. Our lawyers know how to get you tie the knot with your partner legally.
 
I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.
 
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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Tuesday, 20 February 2018 10:14

Legal Age for Getting Marry in Indonesia

Getting marry in Indonesia must meet age requirements as set-out by the prevailing laws and regulations. It is the age where the laws think that you have the capabilities in taking action on your behalf to tie the knot with someone. Performing the marriage legally, requires emotional maturity, and therefore such decision may not be able to be taken by a youngster.  There are many prevailing laws about the minimum legal age for getting marry, but the Marriage Law is the most relevant one, and therefore shall be referred to for such cases.

The Marriage Law stipulates that the minimum age for getting marry is 16 (sixteen) years old for a woman, and 19 (nineteen) years for a man. If you are so young, performing the marriage shall requires the consent from their parents. You don't need any parental consent when you're 21 (twenty one) years old. If you're not old enough, you need to get either a consent from your parents, or get the court of law to approve your marriage. 

We have also Civil Code that stipulates the minimum age for getting marry is 18 (eighteen) for a man, and 15 (fifteen) years of age for a woman. An approval from the President is required when you are younger. Special permission is usually granted under the circumstances such as pregnancy before performing the marriage. 

The other prevailing laws governing minimum legal age to get marry is Islamic Law, and also customary law. But national law refer to the Marriage Law, and is applicable for Indonesian citizen, and all couples getting marry under the laws of the Republic of Indonesia, regardless your nationality.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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The laws in Indonesia legally recognized Marital Agreement as a contract entered by a husband and wife, either before or during the course of marriage. Having a marital agreement in Indonesia, there is more to it than meets the eyes. You can see how it redefines your marriage, whatever your citizenship is.

Are You In It for Love?

A marital agreement in Indonesia definitely can protect your assets. When you're considering to marry someone, you need to know if she/he's marrying you for love or for money. One could never tell, but the marital agreement could always do. Take my word for it. If she/she says yes, even after the prenup has been executed, then he/she's the one. No matter what. 

By entering into a marital agreement prior to your marriage, you can protect your assets acquired prior to your marriage to him/her. The assets are legally free from the claim she/he can brought against you as if no marriage has been consummated. You're not legally liable for the debts prior the marriage. So, yes, with the marital agreement in Indonesia, you are in it for love. Not for the money.

Protection against Bigamy

This is sometime, just sometime, happens in countries like Indonesia: your husband is committing bigamy. Ouch! That's not good. Please don't get mad. Get everything! Yes, you read me right. Get everything, literally!

You should insist to enter into a marital agreement between you and your husband in order to protect your financial interest, your children's future, and your assets. Even though, each marriage to each wife and its assets is totally separated, but you never knew. Get yourself a cover. You can't risk yourself and the children exposed to any potential risks. In this case, you should get a postnuptial agreement. This is a type of marital agreement entered into a husband and wife during the course of marriage. With the breakthrough verdict from the Constitutional Court in 2016, the postnup is legally recognized and totally can be upheld in the court of law. 

Using a marital agreement to protect yourself from bigamy is exist long before the Court reach the verdict. The terms and conditions for this type of marital agreement is even exist in the Civil Code. Indonesian socialites have been using this to protect their marital assets, and the laws allow the wife to submit a motion for postnuptial agreement. 

Business as Usual

Practically, in Indonesia, your spouse is your business partner. Not to mention if she/he's actively contributing to the business enterprise on daily basis. Whether he/she is serving as a member of the board or not. Your spouse entitles to half of your share. Lovely, isn't it?

Article 157 Civil Code imposed that the profit you made out of your marital assets, retrieved from the community assets, income derived from joint assets, shall be considered as marital property or community property. Whatever you call it, your spouse entitle to it. Your profit, your income, exchanges of the existing property, among others, are part of the joint assets with your spouse. 

When the marriage ends with a divorce, your spouse gets half of the assets, both now in existence and its profits. So, consider signing a marital agreement in order to prevent that from happening, and list your business enterprise as one of your separate assets.

Preserving Your Inheritance

Say, you're expecting inheritance from your parents. Legally, inheritance and gift from a third party are separate property. Article 35 (2) of 1974 Marriage Law stipulates that if you otherwise determined, the inheritance may become joint property. It means, it may not be free from your spouse's claims. Putting the inheritance into a marital agreement can preserve the inheritance from your parents. It can't be touched legally. You may be clear describing the assets such as location, dimension, and other related description in the marital agreement.

Back-to-Back: Foreign & Indonesian Prenup

Both of you are foreigners. Neither of you is an Indonesian citizen. But you have been residing in Indonesian for quite sometime. You plan to get marry in one of our beautiful islands such as Bali, or Lombok. It means, you're registering your marriage under the laws of Indonesia. You're submitting yourselves to the legal system in Indonesia. But, hey you're signing a foreign prenup. That's cool!

But you know what? Your foreign prenup is not recognized here. So, from the Indonesia's legal perspective you’re married but with no prenup. Therefore, you have joint property ownership regime. On the other hand, if you have the Indonesian prenup, and the Indonesian marriage, those are legal bonafide to you and your marriage. There’s no hesitation in terms of the legality of the prenup. Your foreign prenup will even make thing stronger. The Indonesian prenup shall serve as "the bridge" to your foreign prenup. So, everything is connected now. There's no missing link anymore.

In the event of divorce, with the Indonesian prenup, your marriage will still have separation of property regime. This can be used as “mirror” just in case things get ugly, and any court in other country will refer to the Indonesian side.

Preserving the Indonesian

I like the term "preserving" better than "protecting" because your Indonesian spouse is entitled to the freehold property. She/he can own property under hak milik. The best thing about it is that you can keep it for good. You can even inherit to your children. But once you're married to a foreigner, the Indonesian shall be precluded in owning the property in Indonesia. She/he is the same legal position with his/her foreign spouse. The Indonesian prenup comes to preserve the rights of an Indonesian citizen, even though she/he's married to a foreigner. The right or entitlement in owning the property has already been there since the Indonesian spouse was born. So, nothing to be protected. It just a matter of preserving what's already been there.

Do you know any other way how an Indonesian marital agreement can redefine your marriage? Do you have something to discuss with? Please do not hesitate to contact me:This email address is being protected from spambots. You need JavaScript enabled to view it.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Monday, 19 February 2018 14:23

Postnuptial Agreement in Indonesia

Postnuptial agreement is a marital contract between husband and wife entered into when couple already married. The postnup basically is a contract governing certain issues like property separation, alimony, child support, and among other issues. 1974 Marriage Law doesn’t say anything about the postnup.

We can only see prenup in there. But that doesn’t make the postnup legally invalid. Although some argue about the validity of the postnup to take a stand at court, it turned out that the postnup works just fine, and legally of course.

The postnup serves like a prenup. Even better. Postnup moves forward and backward, while the prenup only moves forward. Postnup takes care everything retroactively, and consencually between husband and wife. In another words, postnup fix the problem behind you right before you sign it.

Certain requirements must be fulfiled before you can even sign the postnup. Both husband and wife must agree on the terms and conditions set-out in the agreement. Party in the postnup must not feel intimidated by the other. Although there is no legal requirement in Indonesia that each party must be represented by an attorney or a lawyer, a proper legal advise from a highly experience lawyer is indeed recommended.

The postnup can help you sort out the legal issues in your marriage in a way that you want it. Many married couple got it for themselves and walked out happy with big smiles in their faces when they left my office. So, it’s your turn now.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Monday, 19 February 2018 13:14

What should be included in Your Postnup?

Postnuptial agreement is for married couple in Indonesia. You don’t have to get divorce just because you forget to sign a prenup. It’s legal, and the good news is: it’s for real! Take my word for it! Courtesy of the legal system in Indonesia.

Postnup is like other agreement in Indonesia. You can always put anything into the contract. Things like separation of property during the course of your marriage, child support, alimony in case of divorce, are among other issues that can be included into the postnup.

Postnup must not limit the ability of a husband or even waive his obligation in providing support to his wife and children. A postnup that include such terms may be voidable by the court. Therefore,  separation of income must be avoided as part of your postnup’s terms and conditions. It’s because husband is the main bread-maker in the family. He has the responsibility to support his wife and children. I know these days women are also working. They make money as well. Sometimes they make bigger money than man. But the law is the law. Man still the head of the family. On the other subject, the parties must also avoid commingling property in their marriage. This may triger disputes in the future.

Last but not least, the postnup must work to support you and your marriage, not against you. It should be a collaborative process between you and your spouse. The idea is to avoid a conflict from happening rather than motivating disputes and jeopardizing your marriage. 

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Monday, 19 February 2018 11:51

The Essence of an Indonesian Postnup

There is something that people didn’t get it why the postnuptial agreement in Indonesia is non-debatably legal. The postnup is the breaker of the community property regime in a marriage that has no prenup. So, it’s got to have something that can totally change your marriage situation. When you learn more of this, you will see that the prenup is not the only thing that can get you a property separation. The postnup can deliver the same thing.  It serves the same function with prenup. It’s a marital agreement too, but it’s meant for married couples.  The difference only lies on the date of signing. I know people may think I am pulling on their legs. I am not. I mean it.

The essence of an Indonesian postnuptial agreement is an Affidavit of Release and Discharge made by one spouse to the other within the marriage. It releases of one spouse’s rights in the community property along with everything that comes with it. Furthermore, he will discharge his spouse of any possible legal action that may be brought against her. This affidavit is a must. Otherwise, the postnup will not be legal. Without it, the postnup is the same thing with a back-dated prenup. A worthless piece of paper. You see now why I insist that the postnup is legal? The postnup and the affidavit, they come together.

The affidavit holds a very important role in a postnuptial agreement. It changes the circumstances that exist in a no-prenup marriage by giving-up one spouse’s share in a community property to the other voluntarily. The rights being released are those connected with the land and everything on top of it such as a building or a house. The affidavit will totally change the regime of a joint property ownership into a separation of property. Furthermore, the affidavit also nominate the other spouse as the property holder within their marriage. She will independently retains the rights and obligations in connection with the land as if no marriage has been consummated before.

I would also highly suggest to enlist all of the previously-acquired property into the affidavit. This is part of the postnup’s characteristic that retroactively applicable to everything that take place before the couple sign the postnup. It means the affidavit will take care of the problems that may arise to the property ownership since they were legally married.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Monday, 19 February 2018 11:31

Postnup: A New Phenomenon in Indonesia

The postnuptial agreement is legal in Indonesia. Some people said it’s not. How can you tell if your posnup, if you decided to have one, legally valid? The laws in Indonesia, like any laws in other countries, keep up with the developments in our society.

Something that may not be recognized ten years ago, it may be something familiar these days. So, if you insist that the postnup is not legal, you may be an old timer in this field. You should look around and get to dig here and there just to make sure you keep-up with the current affairs in the field of family and matrimonial laws in Indonesia. Postnuptial agreement is a new phenomenon in Indonesia.

Postnup gets its popularity because married couples need it badly, especially those who did not have a prenup. Postnup can save their marriage. Getting a postnup for the married couple is a smart solution, instead of getting a back-dated prenup. You can always find some geek, if the price is right, who can give you a back-dated prenup. A clean and pristine document saying that you have had a separation of property regime in your marriage. Perfect! Is it?

Well, here’s the catch. The prenup needs court registration. Now that you have a back-dated prenup, you need to have a back-dated court registration. Once you lie, you must keep lying to cover it up. Court registration for such document like a prenup gets to roll everyday. They will not be able to supply you with a back-dated court registration. The only thing they can give you is an actual one. This is non-negotiable. So, a back-dated prenup with an actual date of court registration? Yeah right, Einstein! Why bother registering with the court? A guy came to me and he said their prenup was rejected by the bank. Well, I know why. Without court registration, it’s not applicable to third parties. The bank is one of the third parties to your prenup. What does that mean? It means your back-dated prenup, without the court registration, is not applicable to the bank as the financier. It’s the last thing they want. It’s the last thing you want too. So, why waste time and money getting a back-dated prenup? Therefore, I believe the postnup is the ultimate legal solution for married couple who didn’t have any prenup prior to their marriage in Indonesia.

As long as the parties in the postnup is not feel intimidated, in the legal age, the contents of the postnup are legally permissible, and are among other things that indicate the postnup is legal. The recognition comes from Indonesian government agencies that deal with property title transfer between the buyer and the seller such as BPN (land registry), notary, bank, etc. When you don’t have any problem with them, by then you will know that your postnup is legally valid in Indonesia.

I certainly understand that something new might not familiar to everyone. You may not feel comfortable with it. That’s why you must do it the right way. Getting a postnup is not only about doing the right thing, but you need to make sure that you’re doing it the right way. You need to do it with a highly experienced Indonesian lawyer that can guide you through the limbo of the legal system in Indonesia. 

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Monday, 19 February 2018 10:45

Why You should get Your Own Postnup?

Many married couples told me that they didn’t know they need a prenup in the first place. They didn’t know the importance of a prenup. Nobody told them about it. Not even government officers. Well, at least that’s what they’ve told me.

Now that they are married, it’s too late for a prenup. It must be done before the marriage. That’s why they called it PREnup. Getting divorce and write a prenup is even sillier than getting a back-dated prenup. So, What they’re suppose to do? They need to get a postnup!

Getting a postnup for married couples can be as painless as having a prenup, if you know how to do it right. First, the significant difference between postnup and prenup is the time when you sign the contract. You sign the prenup before you get marry, and you sign the postnup during the course of your marriage. Second, most of the terms and conditions applicable for prenup are also applicable to postnup. Both of them are contract. They are treated the same in Indonesian law. Third, they must be written in Indonesian language. Fourth, they must choose one of the Indonesian courts as the forum to resolve the potential disputes. I can give you a bunch of other regulations regarding postnup and prenup, but those four items are the priorities when you decided to get a postnup. Lastly, postnup requires a court registration. I’ve seen some comments that court registration is not important for the legality of the marital contract. Well, it’s piece of crap. Forgive my language.  You do that, and you will end-up with worthless piece of paper. Your postnup will not valid against other third party, and that includes the government agencies such as BPN, bank as the financier, and other related party that may have interest in your property ownership regime.

The other significant difference when it come to postnup is that one spouse gets to sign an affidavit of release and discharge. It says that one spouse is giving-up his rights in their property ownership and vested in the other spouse. This usually applicable to mixed-marriage couples where a foreign spouse has 50 % share of their property ownership. This is applicable because they didn’t sign any prenup and therefore joint property ownership is running in their vein. As you can see, the affidavit of release and discharge is very important and you may call it as the essence of your postnup.

I received many questions regarding the property they currently owned. In terms of mixed-marriages, usually they acquired it via risky purchases like using fake marital status in their ID cards, or getting some family members as a nominee. Should that property listed on the postnup? I would say yes. Why? Because the postnup serves retroactively. It also valid backward to the property previously purchased before they sign any postnup. If you want to solve the problem, you need to be honest to your self and the people that will help you getting your postnup legally valid. It has nothing to do with taxation, or any other financial obligations. They won’t knock on your door at night and asking your property credentials. It’s not happening here.

You see now why you should get your own postnup? It’s a painless solution to your legal issues in your marriage. Child support of previous marriage, alimony, foreign property ownership. You name it, the postnup can handle it.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

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Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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Most people think of marriage as the ultimate emotional and spiritual bond. They are looking forward to a life of happiness. However when faced with negotiating a premarital agreement, they realize that not only do they have to decide what will happen to them if they divorce or when die, but that they also have to negotiate these issues with their fiancée. It’s not the types of subjects that an about to be married couple likes to think about prior to getting married.

Persons in Need of a Prenup

Consider a prenuptial agreement if you have at least one of the following situations:

  1. You are an Indonesian citizen planning to marry to a foreigner;
  2. You plan to purchase land or a home in Indonesia during your marriage;
  3. You are on a fast career track and are likely to earn a hefty salary in the future;
  4. You own your own business or are a partner in a company;
  5. You are the person who will bring a lot of assets to the partnership, including a retirement account;
  6. Anyone who is paying for his or her spouse to get an advanced degree which is likely to result in significant future earnings;
  7. You have children from a prior marriage.

Legal Grounds for Prenuptial Agreement

The prenuptial agreement in Indonesia is honored and can be upheld in court. The laws governing prenuptial agreements (prenup) stipulate that the agreement should be made prior to marriage. The legal grounds for the prenup come from severalapplicable Indonesian laws, including: Civil Code, 1974 Marriage Law, and Compilation of Islamic Law, as follows:

  1. Article 47 (1) of Compilation of Islamic Law Article stipulates similar provision with the Marriage Law: “At the time of or before the marriage took place, the bride and groom may enter into an agreement approved by the Registrar of Marriage regarding the management of community property.”
  2. The 1974 Marriage Law in Article 29(1) stipulates that: “At the time of or before the marriage took place, with the mutual consent of both parties, they may enter into an agreement approved by the Civil Registrar of marriage, after which it shall also apply to third parties as long as it involves them as well.” Another provision stipulated in the marriage law is that the agreement cannot be amended during marriage, except upon approval of both parties and cannot cause disadvantage to any third party. This stipulation comes from Article 29(4) in the Marriage Law.
  3. Article 199 of the Civil Code stipulates that: “From the commencing of a marriage, there shall exist by law, community property between the spouses to the extent that no other stipulations have been made in the prenuptial agreement…”

Making a Prenup

Indonesian law does not provide a ready-made framework for a prenuptial agreement. You and your lawyer have leeway to define your future legal relationship, although you are bound by law, religion, morals, and public order considerations in drafting the agreement.

An Indonesian prenuptial agreement must be tailored to the particular needs of the husband and wife and be sufficiently flexible to take into account changes in your future circumstances during the course of the marriage. Both parties are free to determine the form of agreement, as long as it abides by religious and civil laws. The provisions are indeed very abstract. The legislature seems to leave it that way in order to make it flexible within the influences of religion, moral, and public order.

Begin by collecting all the subjects and items you want to be included in the prenuptial agreement. Ask your lawyer to draft the agreement and request his/her recommendations. Make note that the property purchased in Indonesia will be under your Indonesian spouse’s name. This is necessary because foreigners are not allowed to own property in Indonesia. For mixed couples what is needed is a prenup which instigates separation of property as the rule so that an Indonesian spouse can legally own and hold property under Hak Milik (Freehold Title) on property purchased. This negates the foreign spouse being an automatic owner of 50% of the property due to the usual joint property rule for married couples in Indonesia. This is one of the most important points of the pre-nuptial agreement and is a requirement for a mixed couple to purchase land/property in Indonesia.

You need to specify the percentage of the combined wealth that each spouse will receive if the marriage was dissolved. Included in the agreement should be full disclosure of all assets and liabilities, including the value of each asset. Ensure that the terms oftheagreement do not promote dissolution of assets.

Keep a copy of all drafts of the documents so that there is a record that you have reviewed every draft. Keep all the drafts, correspondence, and notes so that the file reflects the negotiations and the various resulting revisions. Name and number the drafts in consecutive order such as “draft number three”. This record will be very helpful if the agreement is later contested. After negotiating the agreement, make sure you understand its terms and the importance of abiding by them. An agreement approved by both parties in its entirety is more likely to stand the test of time.

Avoid commingling assets and keep careful records. A qualified accountant or bookkeeper can assist you with this task. Even if the agreement is set aside or revoked, careful bookkeeping will make it easier for the court to trace assets and will save you lots of money.

At Wijaya & Co, we provide client with a pre-nuptial agreement questionnaire. The main purpose of this questionnaire is to gather facts and obtain client’s input on issues that should be incorporated into a prenuptial agreement. The questionnaire consists of the issues that should be considered when you enter into a prenuptial agreement. It can be difficult to discuss every issue that listed on the questionnaire. When you are ready with the answers, the couple may sit down together to discuss every one of the questions, even if they are difficult to resolve.

Legal Constraints for Mixed-Couples

If you are foreigner and plan to marry an Indonesian, you need to get a prenuptial agreement. Considering that foreigners are not allowed to legally own property in Indonesia, and if you wish to take the quite sensible precaution of a prenuptial agreement for the purpose of protecting yourself and your properties in the event that one of you dies, a prenuptial agreement is a must-have choice. The Indonesian government can, by law, take virtually every purchased property away from the grieving party if they did not create such a protective document PRIOR to marriage.

The legal constraints came from the Basic Property Law enacted in 1960 imposed that Indonesian married to the foreigner will be precluded to own a property in Indonesia. This is because the Marriage Law imposed joint property regime as imposed in Article 35: “Property acquired during the course of a marriage become community property.” As for the community property, the Marriage Law imposed further in Article 36 (1): “In regards to the Community Property, Husband or Wife may act on the consent of both parties.” Islamic Compilation Law, which is enacted specifically for Muslims, stipulates that: “A Husband or Wife is not allowed to sell or transfer the community property without the consent of the other.” This makes perfect sense because mutual consent must be obtained from the other spouse. When it comes to mixed couples, such consent cannot be obtained from your foreign spouse because they are not allowed to own property in Indonesia.

So, how could consent can be retrieved when someone is not in the legal position to hold it? Therefore, in order to avoid this kind of trouble, it would be prudent to draft a prenuptial agreement complying with Indonesian law to ensure that your financial interests will be upheld by an Indonesian court.

Importance of Separation of Property

The idea of having a prenuptial agreement for mixed nationality couples, among others, is to have a property separation regime in your marriage since the Indonesia’s Marriage Law is assuming joint property ownership in all marriages. The Marriage Law is applicable to all Indonesians and to all marriages registered in Indonesia. Furthermore, the Basic Property Law in Indonesia does not allow foreigners the right to own property in Indonesia. Therefore, when an Indonesian is married to a foreigner she/he will be precluded to legally own property in Indonesia.

The prenup creates a legal framework for a property separation in your marriage and thus preserves the rights of the Indonesian spouse to own property in Indonesia. The property ownership must be under the Indonesian spouse's name as the title holder. In the event the foreign spouse passes away, the Indonesian spouse may keep the property for good. Given the origins of the prenuptial agreement in Indonesia are in marital property provisions, therefore it can be concluded that the main contents of a prenup are about the rules of community property notwithstanding the provisions of the Civil Code.

If the Indonesian spouse dies, the foreign spouse must transfer the property within 12 months to other Indonesian's name. In many cases, this may be the child/children of the couple. At this stage, the stipulation imposed by the 1960 Basic Property Law is still applicable for foreigners. The prenup protects your financial interest in the event one of you passes away. Just remember, it must be agreed up and signed before the marriage, otherwise it won’t be valid or legally binding.

Record the Agreement

There are two registrations required for a prenuptial agreement. A premarital agreement must be recorded with the registrar’s office of the local district court and the marriage registry. The agreement will take effect for the husband and wife when the marriage is recorded at the Civil Registry or the Office of Religious Affairs and shall take effect against third parties upon the date of registration with the local district court where the marriage will take place.

The 1974 Marriage Law in Article 29(1) stipulates that: “At the time of or before the marriage took place, with the mutual consent of both parties, they may enter into an agreement approved by the Civil Registrar of Marriage, after which it shall also apply to third parties as long as it involves them as well.”  Another provision stipulated in the marriage law is that the agreement cannot be amended during marriage, except upon approval of both parties and cannot cause disadvantage to any third party. This stipulation comes from Article 29(4) in the Marriage Law.

Registering a prenup with a district court is also required. If the agreement is not recorded at the local district court, then it will be considered that no prenuptial agreement exists. Thus, your marriage will have joint ownership in property. Article 152 of Civil Code states: “No stipulations in the prenuptial agreement which deviate entirely or partially from the provisions regarding legal community property shall apply to third parties, earlier than from the date of copying such stipulations in a public register, which shall be done with the court clerk at the court of justice, within whose legal jurisdiction the marriage was executed.”

Death of Either Party

If your Indonesian spouse passes away, the foreign spouse will have to transfer the property title within one year. To transfer the property you need to sell it to another Indonesian or pass it to your children. Under 2006 Citizenship Law, children born into mixed marriages are entitled to dual citizenship. They can keep the two citizenships until the age of 18 plus they have another 3 years to choose one of the two citizenship. In the event they did not choose Indonesian citizenship they will be treated as foreigner and therefore will not be able to hold the property any further. On the other hand, if the foreign spouse passes away, the Indonesian spouse can maintain ownership of the property.

Back-dated Prenuptial Agreements

A back-dated prenuptial agreement is not legal. Even though, you may find someone that might silly enough to provide you with a back-dated prenup, one can always tell that it's a back-dated prenup. A back-dated prenup is a marital agreement that dated prior to your marriage, but signed after you're already married.  People does that because they realize they need it after they are married.  So, they back-date the prenup as if it was signed prior to your marriage. But don't forget how the prenup may legally binding between you as husband and wife, and against other third party. It requires registrations, both at the clerk office of a district court, and at a marriage registry. The two registrations won't show back-dated registrations. They can only give you actual-date registration.

So, instead of getting a back-dated prenup, why don't you get a postnup. It's  some sort of a prenup signed after you get married. You may read it further here, and here.

Indonesian Prenup signed Abroad

In the event that you’re living abroad, or your marriage will be performed outside Indonesia and you cannot come to Indonesia just to sign a prenuptial agreement. You still can have a legally recognized prenuptial agreement by meeting the following legal formalities:

The Choice of Law. Your prenup must be governed under the laws of the Republic of Indonesia. There are several requirements in order to comply with this: a) it must be written and signed in the Indonesian language (English version may be provided for mutual understanding),  b) the prenup clearly states that Indonesian law is the law of choice, and therefore c) an Indonesian court must be used as the forum to resolve any dispute. Article 31 (1) of Law number 24 of 2009 regarding Flag, Language, State Symbol, and Anthem stipulates that: “Indonesian language must be used in the memorandum of understandings or agreements involving government institutions, government agencies, Indonesia’s private organizations or Indonesian citizens.” Any legal documents not complying with this rule may be null and void.

Indonesian Embassy Attestation. Since Indonesia is not a member sate of the Hague Convention on Abolishing the Requirement for Legalization for Foreign Public Documents, you must sign your prenup at the nearest Indonesian Embassy or must be attested by the consul staff at the Consulate. The place of signing must be the same country where you’re registering your marriage. This is related to the reporting of your overseas marriage.

Marriage Reporting at the Indonesian Embassy/Consulate. When you get married abroad, an Indonesian citizen is obligated to report the marriage to the Indonesian Embassy/Consulate in line with Article 37(1) of Administration of Population Law. This is a good time to register your prenuptial agreement as well.

Marriage Reporting at the Civil Registry. This is a permanent overseas marriage reporting and the burden of such reporting shall be on the Indonesian citizen. There are two laws regulating this issue: i.e., 1974 Marriage Law, and 2006 Administration of Population Law. The first one stipulates that it must be done within one year of the start of the marriage, and the latter states that it must be done in 30 days. Both laws impose the reporting time frame must be conducted upon your return to Indonesia. Usually, they will impose the latter law. Therefore, you need to report your overseas marriage, and as well as your Indonesian prenup signed abroad.

Foreign Pre-Nuptial Agreements

It may also be advised to have a pre-nuptial agreement that is valid in the country of origin of the foreign spouse to govern assets in the foreign spouse's country of origin. It should be registered in your country or through the consular section of your embassy in Jakarta. Both agreements are ONLY valid in the country they have been tailored for.

Updating the Prenup

It is important to understand the need to keep the agreement up-to-date. The agreement should be designed to accommodate the passage of time and changes in status, such as the birth of children, and increases or decreases in wealth, or the disability of either party. Since no agreement can take into account all possible eventualities, however, you need to review the agreement periodically with an attorney to keep it current.

I am Asep Wijaya. Thank you for visiting my blog, and reading my posts.

****

Our thanks to Asep Wijaya, Managing Director of Wijaya & Co for sharing this information with us!
 

Disclaimer:

The above is provided for informational purposes only and is NOT to be relied upon as legal advice. This information is not a substitute for the advice of an attorney and should not be construed as a solicitation. No attorney-client relationship is established by use of information found within this article nor in this website.

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