What occurs when a couple splits their finances but the bank denies the loan holder from paying the wife’s portion?
In certain cases, when couples seek legal counsel while still harboring hope of reconciling, it may be advisable to suggest halting any mutual claims process. Instead, they could opt for a reconciliation (shalom bayit) agreement and consider a trial separation or working things out before finalizing a divorce. This agreement would outline terms without immediate enforcement, allowing the couple time to seek guidance from a relationship counselor to work on their communication and bond. This scenario unfolded with a couple in 2020 who entered into such an arrangement.
After staying together for three more years, their relationship eventually deteriorated once again. At this point, the previously agreed upon reconciliation agreement was revisited at the request of the woman who sought her entitled share as per the terms – specifically related to vacating the residence and the family’s chicken farm.
However, when it came time for the husband to transfer his portion of funds as per their agreement, he only transferred 13% of what was owed. He explained that he faced difficulties securing a loan from the bank for the remaining payment.
The man arrived at the court and stated that he was unable to secure a loan to settle his debt with the woman, so they needed to amend their agreement. The Judge dismissed the husband’s argument, stating that there was no valid reason to alter a contract both spouses had agreed upon and signed together. Consequently, the husband was instructed to pay the amount owed to his wife. The judge placed a lien on the husband’s bank account, savings, pension and retirement funds until he liquidated his assets and transferred her share to his former spouse. Additionally, the husband was fined NIS 30,000.
This case is a strong reminder that financial agreements made during separation or reconciliation must be treated with the same seriousness as any binding contract. Courts in Israel enforce such agreements strictly, and excuses like difficulty obtaining a loan might not hold up. When a spouse fails to uphold their end of the deal, the legal and financial consequences can be severe.
If you’re considering divorce, separation, or drafting a financial agreement with your spouse, don’t leave things to chance. Consult a family lawyer who understands both the legal system and the emotional dynamics involved. We help clients protect their rights and navigate complex situations with clarity and confidence—whether they’re separating temporarily or permanently.
