Financial Agreement – Why Is It So Important and Who Is It For?

Whether you are before marriage, in the course of a relationship, or in a shared life – a financial agreement is the most important legal tool for regulating financial relations between partners. Halevi • Levi Law Office, expert in family and inheritance law, drafts personally tailored financial agreements – responsibly, discreetly, and in accordance with the law.

What is a financial agreement?

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

In which cases is it advisable to make a financial agreement?

Before marriage (including second marriages)

Common-law couples

When there is an economic gap between the parties

Partners who manage businesses, assets, or personal inheritances

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

A financial agreement – not only before the wedding

Many believe that a financial agreement is signed only before marriage. In practice, an agreement can also be made after the wedding or during it – subject to the approval of the Family Court or the Rabbinical Court (Section 2 of the Property Relations Law).

Why is legal approval important?

A financial agreement requires judicial or notarial approval, otherwise it has no validity.

Before the marriage – it can be approved before a notary

After marriage – it must be approved in the court or the Rabbinical 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

The advantages of drafting a financial agreement – at Halevi • Levi Law Office

An agreement tailored personally to the partners' needs

Full legal accompaniment from the initial stage to the final approval

Protection of rights, transparency, and fairness

A human and discreet approach in sensitive times

Frequently asked questions – financial agreement

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

It is not mandatory – but highly recommended, especially when there is a property or business gap between the partners.

Can a financial agreement be changed after its approval?

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

What happens if there is no financial agreement?

In the event of divorce – the "resource balancing" mechanism established by 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 intents and purposes, and it can be reinforced by judicial approval. It is especially important for common-law partners – because the law does not precisely define their rights.

Does a financial agreement cancel inheritance?

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

For discreet consultation and a personally tailored financial agreement – contact Halevi • Levi Law Office. Professional, fast, and responsible service – in the central region, the north, and for clients from all over the country.