Property Division
Sigal Belenson-Shafran Law Office
When a marriage comes to an end, the question “How do you divide the property?” often becomes the central and most painful point of contention.
Dividing property is not just an accounting operation – it is a sensitive process, reflecting years of living together, efforts, concessions and dreams .
Proper management of this stage determines not only the financial value that will remain in the hands of each party, but also the sense of justice, closure and the ability to turn a new page with confidence.
The law governing the division of property in Israel
The division of property between spouses is regulated by the Spouses’ Financial Relations Law, 5733-1973 , which states that upon the termination of the marriage, each spouse is entitled to half of the value of all assets accumulated during their life together – with the exception of assets that are explicitly excluded, such as assets from before the marriage, inheritances, gifts, or assets that were agreed in advance to remain separate.
The division is carried out using a resource balancing mechanism – an accounting mechanism designed to compare all of the economic rights of the parties, and not necessarily divide the assets themselves.
In exceptional cases, the courts may deviate from the equal balance , for example when there is evidence of asset smuggling, abuse of economic power, or substantial gaps in earning capacity.
Business, Companies and Tax Aspects – Where the Real Complexity Begins
When one spouse owns a company, an active business, or shares , the issue of division takes on an additional economic and legal dimension.
Courts often use expert accountants to assess the value of the company, taking into account tax aspects and future potential.
Although the transfer of shares between spouses in the event of a divorce is not considered a “tax event ,” if the shares are sold or dividends are distributed in the future, the tax will apply to both parties in equal shares, for the value accumulated during the partnership period.
In cases of an active family company , the court may determine a dynamic division – a combination of economic balance and continued management of the company, in order to maintain business stability and prevent damage to the parties’ livelihoods
Powers and the power struggle – one decision that can change everything
In Israel, there is parallel authority for two courts:
Family Court
Rabbinical Court
The Rabbinical Court has the authority to hear property matters only if this issue is legally tied to the divorce claim – in good faith, honestly, and before a parallel claim has been filed with the court.
When the tie is made for tactical reasons only or without honesty, the authority will remain with the Family Court .
Therefore, it is especially important to act wisely and quickly , to ensure that the procedure is conducted in the right instance – this is a strategic decision that can decide the outcome of the entire case.
Strategic management of property distribution – from a comprehensive perspective
In representing my clients, I combine legal, financial, and psychological knowledge to build a customized strategy, taking a holistic view of needs, motives, and risks.
My goal is to lead the process with control, precision, and intelligence – so you can keep what is yours, close one chapter with dignity, and begin the next with confidence.
Areas of interest and specialization
Over the years of my work, I have acquired a deep interest and practical understanding of the intersections between law, emotion, and man .
My areas of interest focus on where the dry law meets the complex human reality—and on my ability to decipher what lies behind the legal conflict.
The combination of these fields allows me to bring a broad and in-depth perspective to each case , identify what is not said, and create precise and sensitive solutions – which advance the client not only legally, but also humanly
