Court Ruling BA'M 5620/24

What Happened in June 2025?

In June 2025, the Supreme Court issued ruling BA'M 5620/24 - a landmark decision that may change the entire asset protection framework for couples in Israel. The expanded panel of justices established a new legal precedent that significantly broadens the scope of assets that may be divided between spouses.

The "Specific Jointness" Doctrine

Before the ruling, the Property Relations Between Spouses Law, 1973, Section 5(a), established that assets belonging to a spouse before the marriage were non-balanceable - meaning they were excluded from division. An apartment purchased before the marriage, an inheritance, a gift - all were protected.

Ruling BA'M 5620/24 added a new layer: even if an asset is non-balanceable under the law, if the spouses treated it as joint property, it may be divided. This is the "specific jointness" doctrine.

Before and After - Comparison

Before the ruling:

• Apartment purchased before marriage = personal property, protected
• Inheritance received during marriage = personal property, protected
• Savings from before marriage = personal property, protected

After the ruling:

• Apartment purchased before marriage, if both spouses lived in it, renovated it, or paid the mortgage = may be divided
• Inheritance deposited in a joint account or used for a joint purchase = may be divided
• Savings mixed with joint funds = may be divided

When Does an Asset Become "Joint"?

The court did not establish a closed list, but noted several indicators:

• Joint residence in the property for an extended period
• Joint payment of mortgage, property tax, or renovations
• Joint use of a bank account where the asset's funds were deposited
• Joint registration of the property (even if originally in one name)
• Conduct indicating an intention to share

Practical Implications

For couples before marriage:

The ruling transformed the prenup from "recommended" to "essential" for anyone with assets. Without an agreement, there is no way to know with certainty which assets will be protected.

For married couples:

Even couples already married can and should sign a prenup. The agreement protects assets from the moment of signing onward, and can also address assets accumulated before signing.

For business owners:

Business owners face increased risk. If the business operated from the family home, if the spouse helped with the business, or if business profits were used for joint expenses - the business may be subject to division.

What Should You Do Now?

1. Sign a prenup - this is the most effective way to protect assets. The agreement explicitly establishes which assets belong to each party
2. Maintain separation - even with an agreement, it is important to act accordingly: separate accounts, separate registration, and do not commingle personal assets with joint ones
3. Document - keep records proving the origin of each asset
4. Consult - if you have significant assets, consult a family law attorney

Is the Ruling Final?

Yes. A ruling by an expanded panel of the Supreme Court is binding precedent. Family Courts and Rabbinical Courts are required to implement it. Only another expanded panel of the Supreme Court can change the established precedent.