Special Situations

Common-Law Partners

Common-law partners (yeduim betzibur) are not directly subject to the Property Relations Between Spouses Law, 1973. In the event of separation, the court applies the "presumption of sharing" - a legal doctrine that examines the parties' conduct during the relationship.

Why a prenup is especially important for common-law couples:

• There is no clear default for property division
• The court examines each case individually - a lengthy and expensive process
• The outcome is difficult to predict
• A prenup establishes clear rules in advance

Advantage: Common-law couples do not need court approval for the agreement. Notarial certification is sufficient, but recommended.

Second Marriages with Children

In second marriages, the agreement protects two generations:

• Children from the first marriage - the agreement ensures that assets intended for them do not become commingled with the new joint property
• The new spouse - the agreement clearly defines what belongs to each party
• Inheritances - it is possible to stipulate that assets intended for children from the first marriage are excluded from division

Example: Danny is in his second marriage and has two children from his first marriage. He wants the apartment he inherited from his parents to go to his children. A prenup with property separation ensures the apartment will not be included in the property division if the second marriage ends.

Olim (New Immigrants)

New immigrants face unique challenges:

FATCA and US Tax Reporting:

US citizens must report taxes to the US regardless of where they live. Sharing assets with an Israeli spouse can create dual tax liabilities. A prenup with separation helps clearly define which assets belong to each party.

Foreign Prenups:

An agreement signed abroad is not necessarily valid in Israel. Israeli law requires notarial or judicial approval. It is recommended to draft a new agreement that meets Israeli law requirements, or at minimum to have the existing agreement certified in Israel.

Assets Abroad:

Apartments, bank accounts, pension funds, and other rights abroad should be explicitly included in the agreement. Currency and exchange rate issues should also be addressed.

Business Owners and Startups

Stock Options (ESOP, RSU):

Many tech workers receive part of their compensation in stock options. Without a prenup, options that vested during the marriage may be subject to division. The agreement can establish that options and shares remain the personal property of the employee.

Intellectual Property (IP):

Patents, trademarks, copyrights, and software developed - all are valuable assets that should be protected in the agreement.

Business Goodwill:

The goodwill value of a business can be significant. The agreement can establish that the goodwill belongs to the business owner.

Non-Hebrew Speakers

If one spouse does not speak Hebrew:

• A certified translator is required at the meeting with the notary or judge
• The translator must be independent - not a family member
• The agreement itself can be bilingual (Hebrew and English)
• Translator cost: typically 500-1,000 NIS

At Noberu, the agreement is generated in both Hebrew and English, making it easier for bilingual couples.

Cryptocurrency and Digital Assets

Cryptocurrencies (Bitcoin, Ethereum, and others), NFTs, and other digital assets present a unique challenge:

• Their value can fluctuate dramatically
• They are difficult to identify and trace
• They may be held in anonymous wallets

The recommendation: include an explicit clause in the prenup addressing digital assets, including a duty of full disclosure.