Do I need a lawyer for a financial agreement before drafting it?
A financial agreement is a contract entered into between spouses who wish to regulate various issues between them, which are part of the marital system. The Financial Relations Law refers to the issue of the existence of a financial agreement between married couples according to the Law of Moses and Israel and states that, unless the agreement stipulates otherwise, the principles of the law will apply to it.
In light of a recent ruling on the subject, an agreement between unmarried couples – known to the public, disqualified from marriage, and married in a civil marriage – can be seen as a contract subject to contract law in the State of Israel, and hence its validity.
Validity of the financing agreement
The agreement will be in writing and approved by the court or the family court. An agreement signed before the marriage can also be approved by the marriage registrar or a notary, and subject to the conditions listed in the law.
Approval of the agreement is an essential condition and without it it has no binding legal effect. Moreover, the fact that the agreement has not been approved may indicate that one of the parties does not agree with its contents.
Therefore, it is necessary to ensure that the agreement is duly approved.
The importance of the agreement and its content
The content of the agreement is forward-looking and will be implemented in the event that the couple decides to separate and dissolve the family unit. Indeed, there is discomfort in formulating and signing such a document even before the couple has begun their joint journey.
However, this inconvenience is outweighed by the need to settle matters that could in the future turn into a cumbersome and ugly divorce battle.
The drafting, signing, and approval of the agreement also ensure that the couple are not marrying due to financial interests – in the case where one party has a large amount of assets – and that no extortionate measures will be taken upon the termination of the marital relationship.
The issues included in a financial agreement are, of course, influenced by the couple’s financial status before marriage.
Economic imbalance at the beginning
In the event that the spouses accumulated property before they got married and received gifts or inherited assets, the agreement will define what portion will be included in the joint property and what assets will remain in their private ownership.
Hence, the importance of the agreement for couples who enter into marriage when they are not financially balanced – one party owns assets and the other does not – or when they possess assets that they do not intend to include as part of the family unit.
External assistance
In cases where the couple receives external financial assistance – for example, financial assistance for purchasing an apartment from their parents – in an unequal ratio, the agreement will define how the property for the purchase of which the external assistance was provided will be divided, in the event of separation..
Division of property accumulated during the marriage
The agreement will define the division ratio between the spouses regarding property accumulated during the marriage, how the property will be registered during the marriage, and a separate reference to the issue of businesses and the fruits of businesses.
For example, the share of one of the spouses will be guaranteed. In everything related to the family company, even if he did not actually take part in it and stayed home to take care of the children. On the other hand, the agreement will guarantee the right of the spouse who worked day and night for the success and prosperity of the business.
Child support, custody and visitation arrangements
The agreement will determine how payment will be divided. Food ChildrenWhat is the rate of alimony that will be paid, taking into account the income of the spouses, as well as conditions regarding children who are not joint children – in the case of a second marriage, for example.
The agreement will also specify the visitation and custody arrangements accepted by the couple at the time the agreement is signed. It is clear that during a custody battle Divorce These issues are turned into an extortion tool in the hands of one of the parties, while the financial agreement does not allow this and “takes the children out of the game.”
A financial agreement is no small matter. As it foresees the future, great attention must be paid to the way the agreement is worded – clear language that cannot be interpreted – and to the details.
Therefore, it is necessary to seek the services of a family law lawyer who is knowledgeable in the field, which will ensure the existence of the agreement in the event of separation, without legal battles and unnecessary delay.
Let’s read: A guide to drafting financial agreements
Financial agreement lawyer
In 1974, the Financial Relations Between Spouses Law came into effect. According to this law, the basis for the division of property after a divorce is the “rule of sharing” – a rule according to which the joint property will be divided completely equally between the spouses, regardless of the issue of financing the purchase of each property nor the formal ownership of them. In some cases, the rule of sharing also applies to property that was in the possession of the spouses before the marriage, and another explosive issue is gifts or inheritances received by one of the spouses. When you draft a financial agreement with the help of a lawyer, the reality changes, and the manner of dividing the property is actually determined in this agreement. At the Sharon Segal Law Firm, we draft comprehensive and precise financial agreements, based on many years of experience and full attention to you.
Why is it worth drafting a financial agreement with the help of a lawyer?
- Peace of mind – In Tractate Avot in the Mishnah, the equation “more assets, more worries” appears, and it is of course also true today. Despite this, it is of course worth protecting the assets you have accumulated, and in order not to risk losing 50% of them due to the rule of sharing, it is strongly recommended to sign a financial agreement, of course before marriage.
- Full transparency – Some people fear that a request/demand to sign a financial agreement is a minefield that could harm a relationship. In reality, the situation is the opposite: a truly good relationship is based on transparency and fairness. A financial agreement clarifies in advance what will happen in the event of a separation, so that full transparency is guaranteed, and it also leads to a fair division of property. Accordingly, if the relationship is based on strong and true foundations, a financial agreement will only strengthen it and certainly will not jeopardize it.
Accurate financial agreements tailored specifically to you
Full disclosure: The law allows couples to draft a financial agreement on their own, even without the assistance of a professional. However, only with a lawyer will a financial agreement provide the benefits expected of it. Sharon Segal Law Firm provides this essential service to exceptionally high standards, which include maximum attention to every detail, meticulous wording, and full customization to you. It is also worth knowing that it is possible to draft graduated financial agreements, meaning those that are automatically updated over the years and/or when the family composition changes.
