Israeli Divorce Law: How Inheritances and Gifts Are Divided

Israel's 1973 Spouses' Property Relations Law dictates that assets accumulated during a marriage are subject to division upon divorce, with no need for proof of joint ownership. However, inheritances and gifts received during the marriage are generally excluded from this division unless they are deposited into a joint account, which is then considered an intention to share and makes the funds subject to division.

This law applies to couples married from 1974 onwards without a prenuptial agreement. Those married earlier fall under the 'presumption of joint ownership' principle, requiring proof of shared life and intent to pool assets. Under the current law, joint ownership is the default, and the burden of proof lies with the spouse claiming an asset is personal.

Assets subject to division include real estate, bank accounts, savings, companies, investments, and even future entitlements like pension funds and severance pay. Pension accruals are often the largest asset for middle-aged couples and are divided through a separate legal mechanism. Exceptions to division include benefits from the National Insurance Institute and compensation for bodily injury or death, as these are intended to compensate an individual for specific damages.

Assets like inherited property or gifts received during marriage can be excluded if kept separate. However, registering inherited property in both spouses' names or depositing gift money into a joint account can render them divisible. The law also indirectly acknowledges unpaid domestic labor, as a spouse who earned less or stopped working to raise children receives half of the other's accruals, compensating for career sacrifices.

While the standard division occurs upon divorce, an earlier division can be requested under specific conditions: a substantial marital rift, at least nine months of separation, and one year since divorce proceedings or property disputes began. This prevents one spouse from accumulating assets after the de facto end of the marriage. In exceptional circumstances, courts can deviate from a 50/50 split, considering factors like extreme income disparities, asset concealment, or prolonged abuse.