Dividing Marital Assets in a Divorce in Indonesia: Advisory for Foreigners

    Navigating a divorce in Indonesia can be complex, particularly for foreigners married to local citizens. Understanding both local laws and international implications is crucial. Marital assets are divided based on the principle of harta bersama (shared property), meaning all assets acquired during the marriage are considered joint property and must be equitably divided.

    An Overview of Divorce Proceedings in Indonesia

    Divorce proceedings in Indonesia are primarily governed by the Marriage Law, and for Muslim couples, Islamic Law may also apply. For foreigners, the process can be intricate due to jurisdictional issues and varying legal systems.

    What are the grounds for divorce?

    According to the 1974 Marriage Law, divorce can only be granted under one of the following conditions:

    • One party has committed adultery or other vices such as drug addiction, alcoholism, and gambling addiction which has strained the marriage;
    • One party has separated from the other for 2 (two) years consecutively without a legitimate reason;
    • One party has been sentenced to prison for 5 (five) or more years after the marriage has occurred;
    • One party is incapacitated due to disease or illness which prevents them from fulfilling their duty as a husband/wife; or
    • Due to irreconcilable differences.

    Specifically for Muslim couples, there are further grounds for divorce in addition to those stated above namely if one party has become a ‘murtad’ (has left the religion of Islam) or ‘taklik talak’ in which a premarital agreement was broken by one of the parties.

    How Are Marital Assets Divided?

    All assets acquired during the marriage are deemed joint property and must be divided upon divorce.

    The court assesses the value of these assets and debts, and if the couple cannot agree on the division, the court will intervene to ensure a fair distribution based on contributions, needs, and equity. Dividing foreign assets can be particularly complex, as the Indonesian court may need to cooperate with foreign legal systems or recognize foreign court rulings.

    Inheritance received during the marriage is generally not included in harta bersama and remains the individual property of the recipient unless it has been integrated into joint assets, such as purchasing property in both names. Inheritance received by a spouse during the divorce process is usually not subject to division. However, the inheritance could affect the settlement if the local spouse dies during the divorce proceedings.

    Importance of Prenuptial and Postnuptial Agreements for International Marriages

    Prenuptial and postnuptial agreements are essential tools for protecting assets in mixed-nationality marriages. A prenuptial agreement, made before marriage, outlines the division of assets and financial responsibilities, helping safeguard individual property and clarify asset division. A postnuptial agreement, created after marriage, can address changes in circumstances or additional assets acquired, serving to adjust asset distribution agreements.

    Both agreements must comply with Indonesian law to be enforceable, so it is crucial to consult a legal expert familiar with both Indonesian and international law.

    Conclusion

    Navigating a divorce in Indonesia, particularly for foreigners, involves understanding the complexities of local laws and international implications. A crucial aspect of this process is the division of marital assets, governed by the principle of harta bersama (shared property).

    By preparing in advance and addressing asset division comprehensively, foreigners can more effectively navigate the complexities of divorce in Indonesia and safeguard their interests throughout the proceedings.

    If you want to know more about the legal aspects discussed in this article, email our attorneys at Jarji Zaidan & Partners. We have in-depth experience in the field of family law. We are also available on WhatsApp +62 821-9000-3273 / +62 813-1403-8907.

    Disclaimer:
    This article is not a source of law, is only an opinion, and is not binding on any party, and this article follows the laws and regulations in force on the date this article was published.

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