Getting marry is going to be the best decision you'll ever made. It is a simple decision with the a future lying ahead of you. They said the marriage is the foundation to everything in your life, among other, property. Both husband and wife are to have joint property ownership after the marriage, if they did not sign anything like a prenuptial agreement. Sometime, you don't get one just because you thought you did not need one. But now, the Constitutional Court revised the Article 29 (1) of the Marriage Law that the marital agreement may be entered as well during the course of marriage. The verdict number 69/PUU-XII/2015 officially created a postnuptial agreement on October 27, 2016 as one of the legal instrument in management of your assets in the marriage. Now, you can have one when you feel you need one.

The ideas behind this decision to officially allow the postnuptial agreement for married couples were to create separation of property and assets between husband and wife. Their separate assets are protected. No drama in fighting for property division. The same idea also applicable to debts. Husband and wife shall responsible for debts they created. The postnup therefore shall create separation of liability during the course of marriage. Furthermore, no consent is required from each of the party in the marriage in the event they want to sell their own separate assets. As for loan application with the bank, neither party is required to obtain consent from their spouse in putting their separate assets as a mortgage. In view of the above, the court wants both parties are totally independent in managing their assets. This is a fine legal reasoning. The Constitutional Court, they keep-up with the contemporary developments within the society in Indonesia. Awesome!

The validity of the postnup shall be initiated as soon as you’ve signed it. It is applicable since you entered it, and it is advisable not retroactively backward. It is applicable on actual date. This is to avoid any conflict of interests with any third party, because since the marriage date the couple might have been created jointly owned marital assets. It is very difficult to differentiate which property belongs to separate or joint property. You may potentially jeopardize the third party’s interests such as banks, and other investors in your marital assets. If you should retroactively draw the postnup back to the marriage date, at least you need to have the properties included into the exhibit and make sure they are mortgage-free. Apart from the ones listed in the exhibit, they belong to both of them. The couple is to have equal shares. This will also include the creditor(s) having a portion in the unlisted properties for the part that a mortgage has been put under. You may want to contact me here to discuss any further about this matter. At Wijaya & Co, we always pay attention to details of our client’s case. 

The postnup created under the verdict from the Constitutional Court has potential challengeable issues. The verdict put a notary as the party that legalize the postnup. According to the civil law procedures doctrines, this is not a proper ruling. They put the role of a notary to substitute the authority of a judge. You see, having a prenup and not having a prenup is a big deal, because it creates a property separation during the course of marriage. This situation is full of potential issues because when you're having a property, whether you like it or not, it involves other third party(ies) too, not just you and your spouse. The other third party such as bank as the lender if the property under mortgage, the government through the BPN (Badan Pertanahan National/National Land Registry), and other party that may have interest in your assets acquired during the marriage. At Wijaya & Co., we always pay attention to our clients' details and therefore issues are identified before they become potential hiccoughs. 

By having a notary legalizes a postnup, they are driven to declare some new legal situation. Last time I checked, this is the domain of a court through their legal instruments i.e. court decree. They called it a Declaratory Verdict. It creates a new legal facts, a new situation. For instance, declaring from joint property ownership to separation of ownership. As far as I concern, the court have a very established sets of law in civil procedures. Before finally reaching the verdict, the court must conduct a cross examination. This is a very important phase in civil legal system. If you were not happy with the verdict, you may file an appeal to the higher court within 14 (fourteen) days since the date the verdict reached. If there was nothing within that set of time-frame, the court finds that you are happy with the verdict, and everybody can get on with their lives. Your Indonesian attorney may proceed to draft a postnup for you.

You can't have those situations if a notary is to legalise the postnup. The convert from joint property to separate property, is not legally assessed with substantial rule of evidence, like the one they're doing it at a court proceeding. If one of the spouses was not happy, or seek any potential leeway that may benefit them in a divorce case, they might want to revoke the prenup. I would say they may be able to do that. Therefore, the postnup as its final outcome, is challengeable, and may be voidable. I would suggest you should consider it with full discretion. If your situation is full with substantial marital property, you should decide if any further reasonable action may be taken to secure your interests. Please contact me should you wish to discuss any further about this.

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Wednesday, 18 October 2017 12:38

Postnup in Indonesia: A Walk in the Park

Postnuptial agreement is a marital agreement. It’s the same thing like any other type of contract in Indonesia. The basic requirement that make the postnup valid is consent between the parties in the contract, husband and wife. It’s that simple! I can’t imagine other people take it more complicated than a walk in the park. Well, at least that’s what I’ve heard from the people on the forum. I don’t really have time to investigate what they say about posts I wrote. I provide the posts and they provide the comments. But this one is really worth a response from me. At least, it inspires me to use it as the title of this post. The postnup, moreover, is legal and it’s doable. It’s like a walk in the park! More important is, it works! Read my lips, it works! Let me explain it further.
The postnup is very useful when spouses failed to create a prenuptial agreement but want to protect their assets. It is not something usual in Indonesia because the law thinks that you should’ve get the prenup in the first place. Therefore, requirements to get a postnup are stricter than getting a prenup. Certain conditions must be met before a judge considers a postnuptial agreement valid. The contract must be created with full disclosure of assets, be entered voluntarily by both parties, and have terms that are fair and equitable. However, even if these conditions are met in a postnuptial agreement, a judge can refuse to enforce it. Therefore, it is very important to start the proceedings with enough legal grounds, previous court precedence that might help the judge to have more leeway for your case.
The postnup will create separation of property ownership in your marriage with the basis of having an affidavit of release and discharge by the foreign spouse. The foreign spouse shall release her/his right in the property ownership and vested in his/her Indonesian spouse. The Indonesian spouse therefore shall act as the title holder of the property in the matrimony. The postnup shall enlist the property acquired during the marriage obtained before the couple have a postnup.
The end results of your postnuptial agreement proceedings is in the form of a deed. The same like an ordinary prenup. The deed shall serves as your separation of property regimes and can be used to prove that there is a property separation in your marriage. Therefore, it gives you and your Indonesian spouse the authority to conduct any property transaction, without any mutual consent. Once the property separation created and vested in a postnup deed, your Indonesian spouse still be the holder of the property title. As long as there is a separation of property in the deed, your Indonesian spouse may keep the property for good. That situation will create legal protection for an Indonesian married to a foreigner.
Please forward this post to people who discuss this issue on the forum. We need to make sure that it is like a walk in the park. I am Asep Wijaya. Thank you for helping me spread the access to the legal system in Indonesia.
Our thanks to Asep Wijaya, Managing Director of Wijaya & Co
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When you’re married, you’re married. You need to move forward with your life. It’s time to settle down: have kids, running a family, and have a home. Yes, you need to have a home for your own little family. This may not be as easy as it sounds when your spouse is a foreigner. The thing is, they are not allowed to own property in Indonesia under freehold title (so called “Hak Milik”). They only allowed to have a leasehold property under Hak Pakai valids for 20 or 25 years. If that sounds good to you, then you don’t have any problem. But if you insist in having a Hak Milik for your landed property, you need to consider getting a postnuptial agreement. We called it “Postnup” for short.

The postnup is a marital agreement signed during the course of your marriage. You see, it requires consent from both husband and wife in order to be valid legally. It means both of you must agree. No duress. No threat. No pressure. Sounds pretty legal already. So, let me carry on. The postnup imposed that the holder of the property in the matrimony should be the Indonesian spouse. Why so? Simple. The freehold (Hak Milik) is the best title an individual can possibly have. You can keep the property for good, as long as you like. It gets a higher and higher price everyday. Your perfect future investment. But it can only happen when you’re an Indonesian. The trust factor plays important part in this scenario. Anyway, it’s the marriage is about, right? 

As with any other legal agreement, the postnup must be signed on actual date. No back-dated contract. Let me rephrase it to you: no back-dated contract. If you come to someone asking for a postnup, and he needs to check his back-dated registry, then I can say you come to the wrong place. He shouldn’t do that. You tell him it’s not the right thing to do. It's definitely not a postnup. Forget about it. On the other hand, the postnup should tell everything about your situation. It must say that you’re married, and have the details about it. It must also print the correct and actual date the contract signed. There you go! It’s about telling the truth, the whole truth, and nothing but the truth. What’s wrong with telling the truth? Back-dating the contract date means you're not telling the truth. 

You see, the postnup solves your issues, not creating another one. A back-date prenup surely creates one. More than one. I can tell you how it is easily challengable. So, you need to be smart. Your decision determines the outcome, It takes effect to you and your family as well. As an Indonesian, by marrying to a foreigner, he/she is being diluted. Your spouse still an Indonesian citizen, but his/her rights in owning an immovable property is no longer complete. All I can say is, it has nothing to do with the citizenship issues. It has something to do with his/her marriage to a foreign national. I assure you that the postnup can solve the problem. It keeps you move on with your life, without have to turn the clock around. It avoids you mixing one problem with another, like getting a ridiculous back-dated prenup! This is why so many married couples are loving our postnup.

 

 

 

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