Dividing assets: what is shared when you separate

When a married couple separates, one of the first questions is what each of them is entitled to. The answer starts with Israel's Spouses (Property Relations) Law, which applies to most couples married since 1974. Its principle is simple: what was built up during the marriage is shared. The details are less simple.

What is divided

As a rule, everything the couple accumulated during the marriage: savings, a home bought during it, a car, and to a large extent rights built up at work, such as a pension, a study fund and severance. It does not matter whose name an asset is registered in. What matters is when and how it was built up.

What stays out

• Assets each of you had before the marriage.
• Gifts and inheritances one of you received during the marriage.
• Assets you agreed in writing, in a property agreement, would not be shared.

These rules have exceptions too. An asset that belonged to one spouse, such as a home the family lived in for years, may become shared depending on the circumstances. It is one of the most common questions in these cases, and there is no single answer.

The pension, easy to forget

For many couples, pension rights are worth more than any other asset except the home. So it is important to get up-to-date statements from every fund, for both spouses, before agreeing to anything. A dedicated law now allows pension savings to be divided directly through the fund, under a judgment or an approved agreement.

When the calculation is made

The division is usually made when the marriage ends. In some situations the law allows it to be requested earlier, for example when proceedings between the spouses have gone on for a long time. It is worth checking this early, because the date affects the value of what is divided.

You can reach a division by agreement, in mediation or in court. Whichever path you take, the first step is the same: a full and accurate map of what each of you has. Without that map, any agreement is a guess.

This letter is general information, not legal advice. Every case is different, and the law changes from time to time. Before acting, it is worth taking advice on your own circumstances.