Couples tend to avoid discussing two main topics—money and sex. While I don’t have much insight on the latter, when it comes to money in relationships, I have plenty to share. One of my areas of expertise is prenuptial agreements, and there’s a reason for that: proper planning can prevent unnecessary pain down the road.
Whenever I assist clients going through a divorce, I always advise them to formalize an agreement before entering their next serious relationship. This applies even if they choose not to marry legally, as common-law marriages also have financial implications. A recent case highlighted the risks of not having a prenuptial agreement.
A couple had been married for 15 years and had always maintained separate bank accounts. They never shared a joint account or signed a prenup before or during their marriage. Their relationship took a turn in October 2019, leading them to file lawsuits against each other in court.
The husband argued that because they had kept their finances separate from the beginning, they shouldn’t be subject to the Financial Relations Law, which mandates equal distribution of assets. He claimed that his car accident settlement money and funds he had before the marriage should remain his alone.
Conversely, the wife argued that under the Financial Relations Law, all assets accumulated during the marriage should be considered shared. She sought to include the NIS 100,000 her husband received as accident compensation and an additional NIS 300,000 withdrawn from his accounts under unclear circumstances. Additionally, she requested the division of real estate her husband had purchased before the marriage, given that they had lived together for 16 years without a prenuptial agreement.
The judge ruled against the husband, emphasizing that without a prenuptial agreement, the Financial Relations Law automatically applied. His claims of financial separation were deemed legally baseless.
This case underscores the importance of having a prenuptial agreement. Seeking legal advice from an attorney experienced in such matters can protect both partners and help preserve their relationship. Proper planning today can prevent legal battles tomorrow.
