Israeli law applies to every married couple the property regime by virtue of the Financial Relations between Spouses Law, 5733 – 1973 or through the rule of co-ownership, which was introduced by the legal system prior to the enactment of this law.
Accordingly, each spouse is permitted to make transactions and manage the finances of the joint household independently, with the understanding that naturally the financial system of the household is not managed jointly.
Asset smuggling – what is it and when does it occur?
process Divorce It involves a wide range of claims. Among other things, disputes may arise between the spouses regarding Custody Children and visitation arrangements, which will be determined in court. In addition, divorce proceedings often also include Alimony claim , requests for protection orders, and more.
The phenomenon of asset smuggling is related to lawsuits Property division Which are discussed in divorce proceedings, in which the couple attempts to divide the property accumulated during their life together.
However, asset smuggling usually begins even before divorce proceedings are initiated, when the relationship between married couples runs aground.
When one of the spouses anticipates a future divorce proceeding, he or she may smuggle out assets that have accumulated during the period of their life together, with the aim of reducing the joint assets as much as possible at the time of divorce and, as a result, avoiding the division of assets that he or she managed to secure with the future divorcee.
In this way, a spouse who wishes to smuggle assets may give his relatives movable assets, real estate, and even bank accounts as gifts and transfer ownership of them to the recipient’s name without consideration.
What should be done when suspicion of asset smuggling arises?
In cases where there is suspicion that the partner is promoting Smuggling assetsThe disadvantaged spouse should immediately approach a divorce lawyer who specializes in family law.
An experienced and skilled attorney in the field will instruct the spouse on how to proceed, and, among other things, instruct him to check the personal documents of the smuggling spouse to discover when and in what manner property was stolen or hidden by him.
If this detective work leads to the conclusion that assets were indeed smuggled, the lawyer will initiate legal proceedings on behalf of his client.
As part of the proceedings, the lawyer will request an injunction prohibiting the disposition (performance of an action) of the couple’s joint assets, until the division of the assets between them is clarified as part of the property claim.
The jurisdiction of the family court
In addition to protecting future rights in the joint property, which is granted as part of the granting of a disposition prohibition order against the spouse, it is entrusted to the Home Family Law Authority to issue orders against third parties, such as banks, accounting firms, etc.
The court’s authority may also be retroactive, so it may declare property that was smuggled to a third party as property whose half ownership belongs to the disadvantaged spouse.
In addition, the court can require the smuggler to submit a binding affidavit regarding all of his property and assets and even order him to report all financial transactions he has made in connection with the divorce proceedings.
Suspected of asset smuggling? To consult with a lawyer specializing in family law, click here:<br ></br >Legal assistance in divorce proceedings
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