Diamond Merchant Ordered to Pay Ex-Wife $1.5 Million After Price Drop Claim Rejected

An Israeli diamond merchant who claimed falling diamond prices should reduce his divorce settlement was ordered by the Tel Aviv District Court to pay his ex-wife approximately 4.6 million shekels (about $1.5 million). The couple divorced after 31 years of marriage, during which they acquired a home and two investment apartments in Tel Aviv. The husband managed his diamond business through a company he owned, while the wife, a law graduate, worked in the company's accounting department. The court set March 1, 2020, as the date of separation for asset calculation.

The merchant argued that diamond prices had plummeted since the separation, requesting a recalculation of his company's diamond inventory value. He cited a 2023 company report reflecting a significant price drop and a crisis in the industry. However, the court, presided over by Judge Naftali Shila, rejected his appeal, upholding the original valuation. The court reasoned that the husband continued to manage the company and its assets after the separation date, making him solely responsible for any subsequent gains or losses.

The final settlement includes 4,401,728 shekels as an equalization payment and an additional 199,955 shekels for the disparity in earning capacity between the couple. This amount is in addition to the division of their home and two apartments, and 50,000 shekels in legal costs. The court also dismissed the husband's claim that the wife should share responsibility for a tax debt that had grown to approximately 10 million shekels, noting that he had failed to take steps to sell an apartment to cover the debt as previously ordered.

In a separate point, the court accepted the wife's appeal regarding the earning capacity disparity. While the initial valuation estimated the husband's net monthly income at 18,692 shekels and the wife's at minimum wage (5,114 shekels), the family court had not addressed the compensation for this gap. The appeals court acknowledged that the wife, born in 1968, would face difficulties re-entering the workforce, and awarded her the 199,955 shekel compensation.

The merchant's other claims, including that a company office was financed by a loan from his father and that his wife took jewelry worth hundreds of thousands of dollars, were also dismissed. The court noted that the transfer from his father occurred 11 years prior, and the merchant himself had previously referred to it as a gift. Regarding the jewelry, the husband admitted under questioning that he did not know the exact amount and had not filed a police report.