As i’m getting married soon to an Indonesian , I’ve looked into the pre- and postnup things that some say are required in the case of mixed marriages.
After doing a lot of online reading (including on this forum), consulting a lawyer and notaris, I am now probably more confused then I was before I looked into everything. Would love you guys’ opinions on below thoughts/questions.
Situation: young working professionals, early / midway in careers, no previous marriages or any major assets that we bring into the marriage. WNI’s family owns a lot of land that she at one point is to (partly) inherit.
Future plans: no immediate plans to leave Indonesia but also no plans to stay long term, we will move to different countries as my job requires. Retirement? One day, preferably on a beach.
Current thinking: As no plans to purchase property or open up a PT, no need for a prenup.
Thought process:
1. We do not plan to purchase any property in the near future, the main reason for a mix marriage couple to have a prenup ceases to exist.
1.a Even if we purchase property, there shouldn’t be an issue with the purchasing part, issues would only arise when we would try to sell it? (Due to the WNA cannot own land and we own everything 50/50 blabla).
1.b We could then simply make a postnup if and when we want to sell the property.
1.c In the event we do wish to purchase property in the future, and if we would have a pre-nup, any money I “give” to the wife to purchase said property could be considered taxable? This can then be avoided by not having a pre-nup, as she owns the money already anyway.
2. When it comes to inheriting property, we don’t need a prenup as the law regulates that inheritances do not fall under the 50/50 rule. I’ve read some arguments that this wouldn’t for some reason apply to mixed marriages, any updated thoughts on this?
2.a maybe silly but not knowing the specifics of inheritance etc: how would she be able to proof that land is inherited instead of purchased?
3. If WNI spouse dies, I would have 1 year to find a solution for the purchased properties in Indonesia. What about her inherited property? What happens to that? Am I right in assuming that it would go to the children or if that is not possible the closest WNI relative?
3.a An often heard solution is “just give it to the children”, what happens if the children are not of a legal age to own property yet? Or are not legally allowed to own property as they have chosen the WNA nationality when it was time to tick that box?
4. If not having a prenup, but wife has a NPWP, I understand there is a life long yearly tax reporting requirement for her. If she would move abroad, is she able to cancel/deactivate the NPWP?
If not: would there be any way that if we live in a non-treaty country my income would then technically become subject to Indonesian income tax through her? (Provided the indonesian tax guys find out of course).
4.a following to point 4, what if she does receive taxable income from Indonesia while she is abroad? Eg income from rent from her owned properties?
4.b talking about tax, how would it work in Indonesia? We both earn salaries above the taxable income minimum, but are in different brackets. Once we are married, would our salaries become combined for income tax purposes, and thus her salary subject to my tax bracket? If so, could this be avoided with a prenup?
After doing a lot of online reading (including on this forum), consulting a lawyer and notaris, I am now probably more confused then I was before I looked into everything. Would love you guys’ opinions on below thoughts/questions.
Situation: young working professionals, early / midway in careers, no previous marriages or any major assets that we bring into the marriage. WNI’s family owns a lot of land that she at one point is to (partly) inherit.
Future plans: no immediate plans to leave Indonesia but also no plans to stay long term, we will move to different countries as my job requires. Retirement? One day, preferably on a beach.
Current thinking: As no plans to purchase property or open up a PT, no need for a prenup.
Thought process:
1. We do not plan to purchase any property in the near future, the main reason for a mix marriage couple to have a prenup ceases to exist.
1.a Even if we purchase property, there shouldn’t be an issue with the purchasing part, issues would only arise when we would try to sell it? (Due to the WNA cannot own land and we own everything 50/50 blabla).
1.b We could then simply make a postnup if and when we want to sell the property.
1.c In the event we do wish to purchase property in the future, and if we would have a pre-nup, any money I “give” to the wife to purchase said property could be considered taxable? This can then be avoided by not having a pre-nup, as she owns the money already anyway.
2. When it comes to inheriting property, we don’t need a prenup as the law regulates that inheritances do not fall under the 50/50 rule. I’ve read some arguments that this wouldn’t for some reason apply to mixed marriages, any updated thoughts on this?
2.a maybe silly but not knowing the specifics of inheritance etc: how would she be able to proof that land is inherited instead of purchased?
3. If WNI spouse dies, I would have 1 year to find a solution for the purchased properties in Indonesia. What about her inherited property? What happens to that? Am I right in assuming that it would go to the children or if that is not possible the closest WNI relative?
3.a An often heard solution is “just give it to the children”, what happens if the children are not of a legal age to own property yet? Or are not legally allowed to own property as they have chosen the WNA nationality when it was time to tick that box?
4. If not having a prenup, but wife has a NPWP, I understand there is a life long yearly tax reporting requirement for her. If she would move abroad, is she able to cancel/deactivate the NPWP?
If not: would there be any way that if we live in a non-treaty country my income would then technically become subject to Indonesian income tax through her? (Provided the indonesian tax guys find out of course).
4.a following to point 4, what if she does receive taxable income from Indonesia while she is abroad? Eg income from rent from her owned properties?
4.b talking about tax, how would it work in Indonesia? We both earn salaries above the taxable income minimum, but are in different brackets. Once we are married, would our salaries become combined for income tax purposes, and thus her salary subject to my tax bracket? If so, could this be avoided with a prenup?
