Division of assets acquired before marriage – the ruling that changes the rules of the game

Following the Supreme Court ruling, February 2025

Will an apartment purchased before the wedding be divided between the spouses in a divorce? Until recently, the answer to this was clear: No. The Spouses’ Financial Relations Law, 5733-1973, states that any property that belonged to one of the spouses before the marriage – Not included in resource balance Upon termination of the relationship.

However, a precedent ruling by Supreme Court Given in February 2025 changes the situation, and expands the possibility of applying principles of shared intent to also “pre-existing” assets.

Main points of the ruling: When the intention of sharing prevails over historical ownership

The ruling spoke of a couple who married in 2006 and separated after 16 years of living together. The husband owned an apartment that was purchased in his name alone. Before marriage, and did not transfer formal rights to the property to the spouse. The apartment was not registered in the names of both spouses, no financial agreement was drawn up, and no registration was made in the land registry after the marriage.

Upon divorce, the wife demanded half of the rights to the apartment – ​​claiming that there was Specific sharing intent. According to her, the apartment was used as a family residence throughout the years of their marriage, the parties invested in renovations with joint funds, and raised their children there. The husband, on the other hand, claimed that the apartment remained his personal property.

The Family Court dismissed the lawsuit. The District Court upheld the decision. But The Supreme Court accepted the appeal by a majority vote. – and determined that in certain cases, Assets brought into the relationship before marriage may also be divided. Between the spouses, if there are clear signs of intent to share.

Specific sharing intent – ​​the principle that has become more stringent

Joint intent is not a new idea in family law. For decades, courts have been using this concept to balance formal property with the actual marital reality.

The innovation in the February 2025 ruling is in the expanded recognition thatAn intention to share can also exist in property brought into the relationship by only one of the parties., and it is supposedly “fair” to leave it in his possession.

The court states that the question is not only when the property was purchased – but How did married life go around him?. Among other things, we consider:

• The length of time the property is shared

• Investments in the property (renovations, expansions, improvements)

• The source of financing for the investments – joint or private funds

• Was the property the center of the couple’s lives?

• The behavior of the parties – did they create a representation of joint ownership (e.g. in reports to authorities, in agreements with third parties, etc.)

Meaning: Any “old” property may become joint property

In practice, the ruling produces Appeal of legal certainty which was customary until now. Many saw property registered to only one party before marriage as a point of safety. But after February 2025, the line of ownership becomes blurred.

Couples who have not drawn up a financial agreement, even if they have lived for years in an apartment registered in only one of their names, should understand that the use of the property and the circumstances surrounding it May create an “intent to share”, even without a written document.

The practical meaning is that more and more property claims for apartments, plots of land, shops and properties purchased before the relationship will receive an actual legal hearing and will not be rejected outright.

So what’s the solution? A financial agreement is still the most powerful legal tool

Despite the changes in case law, The Law of Financial Relations itself has not changed.. That is, the basic definition that states that assets owned by one of the parties before the marriage are not included in the balance is still in effect.

However, case law interprets the law with increasing flexibility, giving greater space to the realities of life and the principles of good faith and equality.

Therefore, the most central and clear legal solution is Drafting a detailed and clear financial agreement, which will define what is considered personal property, what will be considered joint property, what will remain in the hands of each party in the event of a separation – and thus Will prevent broad interpretations in the future.

Our recommendations – How to protect your assets?

As a firm specializing in family law and complex property division, we recommend:

1. Drafting a financing agreement – At any stage of the relationship: before marriage, during marriage or even in Chapter B. The agreement is the best way to prevent future disputes.

2. Maintaining clear financial separation – If you intend to maintain separate ownership of assets, it is important not to blur the boundaries in day-to-day conduct.

3. Legal advice before joint investments – Do not carry out renovations on personal property using joint funds without proper legal guidance.

4. Neat documentation of the parties’ intentions – For example, through internal contracts, official reports, registration with authorities, and more.

Sharon Segal Law Firm – By your side in protecting what is yours

At the Sharon Segal office, we specialize in family law, financial agreements, and legal representation in complex property disputes.

✔ Personal, strategic and professional guidance
✔ Over 15 years of experience in the field
✔ Handling apartments, businesses, properties and cash
✔ Management of property claims in legal courts
✔ Agreements in Hebrew, English and Russian

Free initial consultation call: 077-997-4020
Branches in Tel Aviv, Netanya and Haifa
Attorney Sharon Segal – Founder of the firm
Attorney Tzlil Weinstein – Tel Aviv Branch Manager
Attorney Inbar Israel – Netanya Branch Manager
Attorney Tzachi Dovrat – Haifa Branch Manager

To conclude

If you have assets from before the marriage – don’t assume they are safe just because they are registered.
Life changes, and the law changes with it.
Don’t let the new ruling surprise you – Contact us today and together we will build proper legal protection for what is yours.