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    Financial Agreement, Cohabitation Agreement and the difference between them

    Financial Agreement:

    A financial agreement is a contract signed between two spouses where the main purpose is to ensure that at the end of the marriage no economic disputes will arose between the couple, so that each of them will be entitled to receive and hold what he/she was promised in the prenuptial agreement. In other words, the couple independently choose how the division of property and assets will be implemented, by determining the distribution in an agreement.

    If a financial agreement was not signed, then you must go according to the arrangements set in the Property Relations Law, where by if the couple divorce, each one is entitled to receive half of the assets accumulated during their marriage.


    Apart from the distribution of the money between them, the couple is allowed to determine in the agreement other understandings such as the alimony amount, social rights, future inheritance or gifts.


    The main benefit in drawing a financial agreement is the prevention of ugly legal litigation and fights, regarding common property, in court at the end of the marriage, which might harm both sides and especially the children.

    Cohabitation Agreement:

    Unlike a financial agreement, a cohabitation agreement is designed to anchor and determine the marital relationship of a couple who do not wish or are not permitted to marry in Israel, meaning “common-law spouses”.


    Other than that, in general, a cohabitation agreement is very similar to a financial agreement since it is essentially intended to regulate and determine the rights and obligations between the spouses.


    The agreement includes the division of property and assets between the spouses, various social rights, including pension funds, provident funds, etc., and also other issues such as the issue of residence, and the children.


    This article is not intended as legal advice and should not be relied on it as such.

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