The actuary’s share in the division of joint property
An actuary is a professional who specializes in the science of actuarial science. This science deals with calculating probabilities for the costs of future risks involving uncertainty, according to mathematical, statistical, and economic models.
The actuary profession is divided into three areas of specialization:
(a) The field of life insurance, pensions and health – specializing in issues of disability, life expectancy, and mortality.
(b) The field of general insurance – with specialization in the field of property insurance and physical risk management.
(c) The field of finance – specializing in capital markets and investment avenues in an environment of uncertainty.
Actuarial studies are usually intended for holders of a bachelor’s degree in a relevant field, such as: insurance, economics, business administration, statistics, accounting, mathematics, industrial engineering and management, etc.
However, in some colleges, graduates with a bachelor’s degree in other fields can also be admitted to studies, but this is subject to completing a number of basic courses in the field.
Sometimes candidates are also required to successfully pass a personal interview, as a condition of being accepted for studies.
In addition, graduates of actuarial studies must pass the exams of the Actuarial Society of Israel and meet all of the Society’s certification requirements in order to join it as full members.
Actuary in divorce proceedings and property division
The services of the actuary are essential in the framework of the procedures Divorce For the purpose of assessing the value of the property of spouses for its fair division between them, especially when no agreement has been made between them Agreement Finance, which regulates in detail the manner of distributing their property.
The assessment of the value of the spouses’ property is relevant whether the division of property is done according to the rule of community of property, for spouses who were married before January 1, 1974, or whether it is done within the framework of Arrangement Resource balancing, regarding couples who married after this date.
The actuary’s role in divorce proceedings is to ensure that the value of the spouses’ assets is assessed fairly, which, God forbid, will not disadvantage either spouse.
To this end, the actuary usually works in collaboration with the attorney or mediators involved in the divorce process, if any, all with the goal of bringing about a fair separation free of unnecessary friction between the spouses.
How is an actuarial opinion performed?
As part of his role, the actuary prepares a professional opinion, which includes a financial assessment of both the value of all assets owned by the couple and their liabilities, for the purpose of Division of joint property, that is: assets minus liabilities, in a balanced manner between both spouses.
To this end, the actuary must have in-depth knowledge of taxation, pension, insurance, interest calculations, mortality and disability probabilities, the social rights provided within the spouses’ workplaces, the current state of legislation and expected legislative changes, and more.
The spouses’ assets include various types of assets, some of which are relatively easy to estimate, while the other portion requires the expertise of an actuary.
Assets that are relatively easy to value are, for example, real estate and vehicles, since their value can be estimated according to the price at which they can be sold on the free market.
In contrast, assets for which the actuary’s expertise is required are primarily liquid-future assets, which are not necessarily actually redeemable at the time of the couple’s separation, and even continue to accumulate funds thereafter.
This includes, for example, investments in securities, pension rights, executive insurance, provident funds, further education funds, and the like.
In such a case, the actuary must perform a discounted calculation of the future value of these assets..
Additional assets for which expertise is required for valuation purposes are: Career and Reputation Assets of the business and/or the spouse’s personal reputation.
As part of the couple’s obligations, the actuary makes an estimate of the couple’s loans, mortgage, credit card obligations, etc.
Financial debts accumulated by both spouses together during the marriage and for the use of both, will be considered debts of both, even if they were registered in the name of only one of the spouses.
The weight of the actuarial opinion in proceedings
The appointment of the actuary as part of the divorce proceedings can be carried out with the consent of both spouses together, on their own initiative or at the initiative of the court, or when each of them appoints their own actuary.
In the latter case, if two actuarial opinions are received that contradict each other, it is customary Home Family Law Sometimes, an actuarial expert will be appointed on his behalf, who will decide between these two opinions, or who will write his own opinion in their place.
In any case, in principle, the status of the actuarial opinion before the court is that of a non-binding recommendation only, and the court may accept it, in whole or in part, or reject it.
However, in the rulings of family courts, it is accepted that the court will deviate from the opinion only in exceptional cases where there are serious and substantial reasons justifying it.
For example, when the actuary acted without authority, or without objectivity, or contrary to the rules of natural justice, or when a “gross error” was made in his opinion, and so on.
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