How Does Property Division Work When You Share an Apartment?

What Factors Affect the Division of a Couple’s Apartment Following a Divorce?

The majority of modern Israeli couples live in apartments. While some couples rent their living spaces, many have opted for home ownership. Purchasing an apartment provides stability and security for them and their family. However, the question of how to split this property in the event of a divorce can cause considerable strife if the couple has not addressed the issue in a prenuptial agreement.

Without an agreement, the marital apartment may be subject to resource balancing. Resource balancing ensures that each spouse receives an equal share of the property they jointly accumulated throughout the marriage. However, since most apartments cannot be physically divided, the divorcing couple or the court must decide how to reasonably accomplish this split in accordance with the law.

The handling of the division of an apartment is influenced by many issues, including when it was purchased and by whom, whether you have children living with you, and your ability to negotiate an amicable agreement with your former spouse. If you have questions regarding property division, a knowledgeable Israeli family law attorney can guide you as you navigate this often emotional topic.

How is Property Divided Following a Divorce?

Any Israeli couples married after January 1, 1974, are subject to the Property Relations Between Spouses Law. This law outlines provisions for dividing assets the couple obtained during the course of their marriage, such as bank accounts, real estate, personal property, and even intellectual property. The law’s overall goal is to create a 50/50 distribution of marital assets. Even if one spouse controlled the finances or was the primary breadwinner for the family, the other spouse still maintains the right to half the assets because they are assumed to have contributed equally to the marriage partnership.
It’s crucial to note that a balancing of resources only occurs if the couple did not sign a prenuptial or postnuptial agreement and is litigating their divorce in court. If a valid agreement is in place, the terms of that document supersede the law and will determine how the couple’s property is divided. Couples may also negotiate their own divorce agreement to submit for the court’s approval describing how the apartment and other property will be handled.

What Happens if One Spouse Owned the Apartment Prior to the Marriage?

One key stipulation of Israel’s property division laws is that they only apply to property obtained after the marriage. Any property owned before the union will be retained by the spouse that purchased or inherited it unless their prenuptial or divorce agreement says otherwise. Under the law, if you owned an apartment and your spouse moved in with you following your marriage, you would likely remain in possession of the apartment after the divorce.

How Do You Dissolve Your Partnership if You Jointly Owned Your Apartment?

For many couples, their home is their most substantial investment and their largest asset. Frequently, the purchase of an apartment requires the financial resources of both spouses. In these situations, the couple often owns the apartment jointly. Regardless of what each spouse contributed to the home’s purchase and maintenance, they are considered to have an equal share in the property as a joint owner.

Dissolving a partnership like this can be accomplished by two means. The first involves physically restructuring the apartment into two separate apartments that can be assigned to each partner. However, this is rarely a feasible solution due to structural concerns, building regulations, and the costs of such a project.

Instead, the court usually divides apartments by ordering the couple to sell the property to a third party and split the proceeds of the sale. One spouse may also buy out the other’s 50% share of the apartment or offer up their share of marital assets equaling that amount so they can keep ownership of the residence. If staying in the same apartment after your divorce is important to you, it’s vital to speak with a skilled lawyer as soon as possible to understand your legal options. Negotiating a divorce agreement outside of court allows you to be more creative in your property division solutions. Leaving the issue in the hands of the court, whether it be the Family or religious court system, may result in outcomes you did not desire or anticipate.

Does Having Children Impact the Dissolution Process?

In divorce, the best interests of the children involved are always taken into consideration. The sale of the apartment will be delayed for as long as it takes to find appropriate living arrangements for the spouse with primary physical custody of the kids. Legally, under section 40a of the Property Relations Between Spouses Law, the court can only order the sale of the property once you and your children have been provided with a suitable place to relocate temporarily. This provision ensures the well-being of the children and guarantees they will not be homeless or in an unsafe or unstable living situation.

How Can a Prenuptial or Postnuptial Agreement Make the Division of Property Easier?

No one ever enters a marriage anticipating its collapse. However, planning for the worst-case scenario can provide protection and peace of mind for both partners. Paradoxically, it can even strengthen your union because you can settle all potential areas of financial disagreement that could arise during your marriage, and you’ll both fully understand the consequences of getting divorced. If you are considering purchasing an apartment as a couple, it is highly recommended to consult an experienced lawyer to draft an agreement that addresses how the property will be divided in the event of a divorce or separation. This simple step can save you money and significantly reduce stress in the future if you ever split from your spouse.

How Can a Skilled Lawyer Assist You?

Your apartment is a valuable asset, both financially and emotionally. Unfortunately, the division of your home and other property can quickly become a contentious topic in your divorce. By seeking the advice of a helpful lawyer from Hait Family Law, you can ensure you have the strong legal counsel you deserve. Let us leverage our skills to help you reach the best possible conclusion in this and other areas of your divorce. Contact our law firm today at 077-200-8161 to schedule your complimentary case evaluation.