Dissolution of partnership between a couple

The term dissolution of partnership is usually known in context of business partnerships but, in fact, it is relevant to procedures of divorce. Dissolution of partnership between a couple is relevant in cases where the couple do not agree regarding the division of the common apartment or house and its sale. To do that, one can file a claim of “dissolution of partnership”. When does one file such a claim? What should you know about the procedure of dissolution between a couple? To find out, read on:

Dissolution of partnership, in practice

Usually, the most expensive asset the couple have is their apartment (or house). In most cases, the couple reside in the same apartment. Naturally, there are sentimental feelings involved. When divorcing, feelings and reality come into contact. There is usually one of the couple who prefers to stay in the apartment and bring up the children there and the other partner will usually prefer to sell the apartment due, in many cases, to the financial burden caused by the divorce and the need to find alternative housing.

What does the law say in a case where the couple have an apartment registered in both their names but one of them refuses to sell the apartment? In such a case the partner who wants to sell might find him/herself in a hopeless situation. There is no legal possibility of selling just part of the apartment or if there is a person residing in it. In such cases, the solution could be a claim for dissolution of partnership. This claim will oblige the spouse to sell the apartment.

The relevant law for dissolution of partnership is the real estate law, 5729-1968. This law states that a person who owns real estate in partnership, can at any time, request to dissolute the partnership in owning. This goes for partners who are husband and wife or a couple who are not married too. This being said, the necessary condition to dissolving the partnership is that the apartment is owned by both parties and is registered in both their names.

I have filed a claim to dissolute the partnership – what can the court do?

When a claim for dissolution of partnership between a couple is submitted, the court has the authority to force the “reluctant” partner to dissolute the partnership. The court can, among other things, appoint a receiver who will sell the apartment. The receiver’s fee is usually included as an extra percentage of the apartment’s price. As a rule, a claim to dissolute a partnership is filed to the family court because the Rabbinic court has jurisdiction only in matters of marriage and divorce.

How can one secure financial existence after the dissolution?

One of the most common questions asked regarding Dissolution of partnership between a couple is: how can one secure a dignified financial existence of the partner refusing to sell the apartment. For example: what is the law in cases where the custodial partner resides in the apartment and refuses to sell it? How can one make sure that the custodial parent and the children have a roof above their heads?

The answer to this question is that, usually, the court will come to a separate decision regarding the dissolution, separate from the divorce procedures. A claim to dissolute the partnership does not prevent the option of getting temporary alimony, in cases where the residents in the apartment are the wife and children. In such cases, the wife can also claim for payment of housing expenses, which will assure a monthly income that will cover the cost of housing.

These subjects are parallel to the claim for dissolution of the partnership and are usually heard in the framework of a claim for divorce, filed to the Rabbinic or family court (reminder: only the Rabbinic court can rule in the matter of divorce).

Is it worthwhile to claim for dissolution of a partnership?

The answer could be positive in cases where there is no possibility to force the reluctant partner to sell the apartment. In many cases, this refusal has many reasons, realistic or emotional. In some cases the couple cannot agree about the sale of the apartment, which leaves on choice but to file a claim to the court to dissolute the partnership.

Since, in most cases, the claim is between ex-partners who have common children, I feel that the best way is agreement and compromise. I think that it is best that the couple discus and reach an agreement, within the framework of the divorce procedure. If this is unsuccessful, the way to filing a claim for dissolution of the partnership is open before the parties. I suggest you consult with an experienced family lawyer who will advise you of the best way for you.