Why do you need a financial agreement?
In the past, a man and a woman would get married at a very young age. The bride’s parents would bring some dowry, while the groom would bring with him his ability to support. Other than that the bride and groom had no assets, and the only assets were those that they jointly accumulated during their lifetime as a married couple. Today, however, many couples get married at an older age, having already accumulated many assets. Even those who marry at a young age bring with them a much more dignified dowry than before. When a couple gets married, he wants to maintain the relationship forever, but in reality, quite a few couples get divorced, and here a problem arises – how to make a division of property in a divorce brought by each of them, and accumulated together.
To this end, a financial agreement is drawn up that regulates the exact division of property in the event of a divorce even before the wedding. This way the couple can rest assured that even if they divorce one day, their rights will not be violated and they will get the money that belongs to them. A couple who does not sign a financial agreement will be subject, in the event of a divorce, to the resource balancing arrangement set forth in the Financial Relations between Spouses Financial Law.
How do you make a financial agreement?
A prenuptial agreement is made personally between the couple, preferably accompanied by the advice of a divorce lawyer who specializes in the field of prenuptial agreements. The agreement will then be able to take legal effect. A prenuptial agreement can also be made after the wedding so that a couple who has not arranged a prenuptial agreement before the wedding can still do so, thus assuring himself that he will not be subject to only the standard rules. When a couple draws up a prenuptial agreement after the wedding and after there are already children then he can write in the prenuptial agreement also clauses concerning the children.
Benefits of a financial agreement
A prenuptial agreement is especially important when it comes to second marriage, so each spouse brings with him many assets, which are even supposed to be passed to his children from his first marriage. Without an orderly financial agreement, many funds that belonged to one family can reach the hand of the other family.
Other cases in which a prenuptial agreement is important are of common-law spouses or same-sex couples because they are not subject to a prenuptial law between spouses and it is important and proper to regulate the financial matters between them. There are of course other cases where it is important to prepare a financial agreement such as: in cases of divorce extortion, in cases of protection of the financial rights of the children and more. Many people think that drafting a financial agreement may harm the peace of the home, but in most cases the opposite is true, and it is precisely the knowledge that money matters are regulated that creates greater openness between the couple.
What to include in a financial agreement
A prenuptial agreement must be made in writing and get the approval of the Family Court or the Rabbinical Court, unless it is a prenuptial agreement then it can also be approved before a notary or the marriage registrar at the rabbinate. Since this is a legal agreement that addresses all the financial issues between the parties, it is very important to consult a family lawyer who specializes in this field, as this is not a routine agreement. The agreement should include, among other things, reference to the manner of distribution of social rights including the pension, division of residence, distribution of real estate assets, mode of holding and management of limited companies, distribution of shares, options, estimate of personal and business reputation, earnings gaps, compensation, spouse alimony, bank and savings account management, vehicle distribution, and property distribution.
Hiding income and funds
Over the years the couple accumulates property and money that during the divorce is required to be divided between them. As a rule, the joint property is divided equally between the spouses in a divorce proceeding, in cases where there is no prenuptial agreement. There are of course exceptional cases and therefore it is necessary and important to get specific legal advice depending on each case. Quite a few times, one or both spouses get particularly bad advice from other professionals about the possibility of evading income withdrawing funds from private bank accounts, or evading funds and assets through another legal entity like a company or partnership. Such an action, in addition to its immorality, is always revealed in a legal proceeding and this harms the spouse who left or tried to conceal the funds because the court looks at him with suspicion and distrust because if he’s done so with money then he is perceived as incredible and unreliable in other areas.
My recommendation is to act honestly even if sometimes you feel that justice has not been done or that you feel that the division is unjust. Be transparent and credible, because the truth – will eventually be revealed in any case and then your situation will be worse in front of your spouse and in front of the legal system that will label you as unreliable and harm your chances in the process. Consult a family law attorney who will explain to you the consequences of your future actions and what you need to do to protect yourself and your assets legally and honestly, because there is no other way.
Topic Summary
The Financial Relations Act is intended to regulate the economic relationship between the spouses in the event that the marriage falls apart. In short, by law, all the assets that have been accrued as part of the marital life will be divided equally between the spouses.
If the couple signed a financial agreement at some point, then it is the one regulated in the financial agreement that will determine the financial plan after their separation.
Spouses who are interested in having their property divided differently than according to the Financial Relations Law will do well to make a financial agreement. It is important to remember that the agreement requires the approval of the court or tribunal if it was signed during the marriage and if it is an agreement signed before the marriage – a notarized approval will suffice. In any case, it is advisable to consult a family lawyer.
