Indonesias legal framework imposes restrictions on property ownership for foreign nationals. This poses a significant challenge for mixed-marriage couples, where one spouse is Indonesian and the other a foreign national. Prenuptial and postnuptial agreements provide a solution, enabling couples to navigate these restrictions while safeguarding their property rights.
Under Law No. 5 of 1960 on Agrarian Affairs (UUPA), foreign nationals cannot own freehold land (hak milik) in Indonesia. In mixed marriages, any jointly acquired property without a prenuptial or postnuptial agreement may be subject to state confiscation, as it is considered part of joint marital property.
A prenuptial agreement, made before marriage, allows the Indonesian spouse to retain sole ownership of property. This is crucial for:
Key Provisions in a Prenuptial Agreement for Mixed Marriages:
Following Constitutional Court Decision No. 69/PUU-XIII/2015, couples can now create postnuptial agreements after marriage. This is particularly beneficial for mixed-marriage couples who did not draft a prenuptial agreement.
Benefits of Postnuptial Agreements for Mixed Marriages:
A mixed-marriage couple in Indonesia purchased a property under the Indonesian spouses name. Without a prenuptial agreement, the property was deemed joint marital property, putting it at risk of confiscation. By drafting a postnuptial agreement, the couple successfully separated their assets, ensuring legal compliance and property security.
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15 Jan 2025