This study aims to analyze the regulation and distribution of inheritance rights for adopted children outside the Clan under Balinese customary law, particularly in Lokapaksa Traditional Village, as well as the dispute resolution mechanisms. This research employs a normative legal method using statutory and conceptual approaches based on customary and positive law. The results show that under Balinese customary law, legally adopted children who have undergone proper customary processes are recognized as having equal status to biological children, especially when acting as successors to the family lineage. However, in practice in Lokapaksa Village, adopted children outside the Clan do not receive full inheritance rights, but instead are subject to a specific division system: one-third for the adopted child, one-third for ancestral obligations, and one-third for social community interests. This indicates a discrepancy between formal recognition and the implementation of rights, influenced by strong kinship and lineage values. Dispute resolution is conducted in stages, starting from family deliberation, customary mediation, and ultimately court proceedings as a last resort. Therefore, reform of customary regulations (awig-awig) is necessary to better reflect principles of justice and legal certainty while maintaining the living values of customary law.
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