A financial agreement: why is it so important, and whom does it suit?

Whether you are before marriage, in a relationship or living together, a financial agreement is the main legal tool for regulating the financial relations between spouses. The Halevi • Levi law office, which specializes in family and inheritance law, drafts financial agreements adapted to each couple, responsibly, discreetly and in accordance with the law.

What is a financial agreement?

A financial agreement is a legal contract between spouses that regulates how the assets and the debts will be divided between them in the event of separation, divorce or death. This agreement overrides the presumption of joint ownership and the default arrangement of the Spouses (Property Relations) Law, 5733-1973, and it is therefore essential to draft it carefully.

In which cases is it worth drawing up a financial agreement?

Before marriage (including second marriages)

Common-law couples

When there is an economic gap between the parties

Spouses who run businesses, hold assets or have personal inheritances

When one of the parties enters the marriage with significant assets or with debts

A financial agreement: not only before the wedding

Many people believe that a financial agreement is signed only before marriage. In practice, an agreement can also be drawn up after the wedding or during the marriage, subject to approval by the Family Court or the Rabbinical Court (section 2 of the Spouses (Property Relations) Law).

Why is legal approval important?

A financial agreement requires judicial approval or a notary, otherwise it has no force.

Before the marriage: it can be approved before a notary

After marriage: it must be approved by the court or by the religious court

In the case of common-law partners: approval by the Family Court is recommended, even though it is not required by law, in order to prevent future disputes

Advantages of drawing up a financial agreement at the Halevi • Levi law office

An agreement adapted to the needs of the spouses

Full legal support from the first stage through to the final approval

Protection of rights, transparency and fairness

A human and discreet attitude at sensitive times

Frequently asked questions: financial agreement

Is it mandatory to sign a financial agreement before the wedding?

It is not mandatory, but it is strongly recommended, especially when there is a gap in property or business between the spouses.

Can a financial agreement be changed after it has been approved?

Yes, but any change requires the consent and renewed approval of the court or of a notary (according to the timing and the nature of the relationship).

What happens if there is no financial agreement?

In the event of divorce, the "resource balancing" mechanism set out in the law will apply, and an equal division of assets may take place even if one of the parties did not want it.

Is a financial agreement valid for common-law partners?

Yes. The agreement is valid as a legal contract for all purposes, and it can be reinforced by judicial approval. It is especially important for common-law partners, because the law does not define their rights precisely.

Does a financial agreement cancel inheritance?

No. In order to exclude inheritance, a separate will must be drawn up. However, a financial agreement can set economic conditions that may affect an estate or other property arrangements.

For discreet advice and a financial agreement adapted to you personally, contact the Halevi • Levi law office. Professional, prompt and responsible service in the central region, the north, and for clients from all over the country.