Divorce is an emotional event — but also a significant financial one. Property division, maintenance, and the effect on jointly held assets, pensions and the mortgage all shape the financial future of both parties. This guide explains the principles.
Disclosure: Educational information only. This is not legal advice. Divorce requires representation by a lawyer. Any action you take is your own responsibility.
Property division — the resource balancing principle
The default position in Israel, absent a prenuptial agreement, is resource balancing (izun mashabim): property accumulated during the marriage is divided between the spouses, usually equally.
Property brought into the marriage, along with inheritances and gifts, generally remains with the party who received it.
The division covers not only visible assets but also savings, pension rights and funds — an element many people overlook entirely, and one of the largest in most marriages.
Child maintenance
Parents are obliged to provide for their children's needs. Child maintenance is set according to the child's needs and the parents' capacity, and varies with custody arrangements and the time the child spends with each parent. It is one of the central, and most sensitive, issues in a divorce.
Jointly held assets: home, mortgage and pension
The family home is usually the central asset. A decision is required: sell and divide, or one party buys out the other's share. This also carries betterment tax implications.
A joint mortgage must be resolved — who continues paying, or whether to refinance or close it.
Pension rights accrued during the marriage are included in the balancing. Dividing them requires explicit treatment rather than assumption.
Why planning and advice matter
Decisions made in the heat of a divorce cost a great deal of money over time. Understanding the rights and obligations in advance, with a lawyer and sometimes mediation, helps reach a fair arrangement and avoids expensive mistakes.
Common mistakes
1. Forgetting pension rights in the resource balancing.
2. Ignoring betterment tax when selling a jointly held apartment.
3. Making emotional decisions about large assets without advice.
Summary
Divorce is as much a financial chapter as an emotional one. Understanding resource balancing, maintenance and the implications for the home and pension — with professional support — helps reach a fair arrangement and start again on stable ground. See prenuptial agreement and the family and planning section. We provide the knowledge — the decisions remain yours.
The information on this page is for educational purposes. Please consult a professional before making financial decisions.
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