As world and local economic conditions worsen, the ethnic Chinese community in Indonesia are again getting nervous. Although they are leaders in the business community and control large parts of the Indonesian economy, the challenging global economic crisis is causing political leaders to again attack them rather than accept blame for some of the economic woes. As with the Jewish Diaspora in Europe during the 1920s and 1930s and the Indonesian Ethnic Chinese during the previous Asian economic crisis of 1998 LINK, politicians are able to convince the masses that their problems are caused by the visibly wealthy amongst them. The result can be not only harassment, but nationalization of property and businesses, and even threats to physical safety.

UHNW Ethnic Chinese in Indonesia are deciding that it is the better part of prudence that they spend a small portion of their wealth diversifying their Passport Portfolios™. Recognizing that they are vulnerable if their only passport is an Indonesian one that can be cancelled at any time, they are looking to immediately secure another citizenship and passport that will give them the ability to leave Indonesia or continue travelling while they are abroad. In addition, they are discovering that this additional passport allows them better visa-free travel then their existing Indonesian passport. Along with a second citizenship, they are also securing homes, offices, and residence permits that will allow them to immediate reproduce their Indonesian lifestyles at safe locations abroad. During a recent business trip to Singapore, various private client advisors I met with confirmed the increasing interest in this area. As with the logic behind buying fire insurance, it is prudent to plan for what may be a remote possibility, but one that if it occurs is devastating.

David S. Lesperance, Barrister and Solicitor

One can hardly turn on the news or look at the magazine stands without hearing about another high profile nasty divorce. Sometimes it’s between the rich and famous and sometimes just the rich. However, for those going through the ordeal, there is no doubt that the process takes a tremendous toll on each parties mental health, not to mention the wealthier partner’s bottom line. Obviously, planning for separation when getting married allows for a smooth predictable transition from marriage to single for both adults and a much great easier time for the children.

The current edition of the Economist, details the decisive impact of residency and citizenship on divorce and custody LINK. As the article outlined, the venue chosen to petition a divorce will have a dramatic effect on the final financial and custody arrangements. Furthermore, different venues will treat pre-nuptial agreements and asset protection trusts (including custody arrangements) quite differently.

With divorce being better than 65% in marriages of the UHNW and an almost certainty when one looks at multiple generations, pre-marital planning for custody, asset division and alimony arrangements is as essential as planning for the other certainty….death. As one of my happily married clients pointed out to me, my principal worry is not my husband and I getting divorced, it is just that we have no control over who our cute 14 year old daughter will eventually marry. We just don’t want the family’s wealth, privacy and happiness compromised in case there is a future “son-in law shot” . In other words, like in golf, when your children marry, it is sometimes not what you were hoping for.

David S. Lesperance, Barrister and Solicitor