Couples tend to avoid discussing two main topics – money and sex. I don’t have anything groundbreaking to share on the topic of sex, but when it comes to money in a relationship, I have plenty of insights. Prenuptial agreements are a topic I specialize in, and there’s a reason why. Proper planning can alleviate a lot of unnecessary pain.
In my line of work, whenever couples go through a divorce, I always advise them to formalize an agreement before their next relationship begins, even if they opt not to legally marry i.e. a common law marriage. A recent case brought this issue to light before the Judge. The couple had been married for 15 years and maintained separate bank accounts throughout their marriage. They never had a joint account or signed a prenup before or during the marriage.
Their relationship hit a rough patch in October 2019 when they both ended up filing lawsuits against each other in court. The husband’s stance was that since they had kept their finances separate from the start of their relationship, they shouldn’t fall under the Financial Relations Law, which calls for equal distribution. He contended that the money he got from a car accident settlement and the cash he had before marriage shouldn’t be split.
On the other hand, the woman argued that according to the Financial Relations Law, which considers shared assets accumulated during their time together, their joint property – including a compensation sum of NIS 100,000 received by her ex-husband due to a car accident and an additional NIS 300,000 withdrawn from his accounts under unclear circumstances – should be viewed as shared.
Furthermore, she also requested the division of specific real estate acquired by her ex-husband before marrying her since they had lived together for approximately 16 years without a prenuptial agreement in place.
The judge dismissed all claims made by the husband stating that no prenuptial agreement existed between them. “For couples who haven’t signed a prenuptial agreement approved by a court, the Financial Relations Law steps in to govern them, rendering the man’s property separation claims legally baseless.”
Having a prenuptial agreement is crucial and seeking legal advice from an attorney experienced in handling such agreements can help maintain the couple’s relationship intact. Read our eBook on prenups to learn more about their importance here: https://jayhaitlaw.com/ebook_prenuptial/
