Court Rules Earning Capacity Gaps Are Balanceable Assets in Divorce
A Tel Aviv District Court ruled that earning capacity gaps are balanceable assets, ordering a diamond dealer to pay his ex-wife 200,000 shekels alongside a 4.4 million shekel property split.
A Tel Aviv District Court ruling has ordered a diamond dealer to pay his ex-wife an additional 200,000 shekels plus interest in a landmark divorce settlement addressing earning capacity gaps.
The couple, married for 30 years with two daughters, underwent a six-year legal battle over property division. While the lower family court had previously rejected the wife's claim for rehabilitative alimony because she holds degrees and will receive substantial property assets, the district court drew a distinct line regarding future earning potential.
Presiding judges ruled that earning capacity gaps constitute a distinct balanceable asset. The court emphasized that the wife, despite holding law degrees and working minimally in the diamond company's bookkeeping while earning minimum wage, is entitled to compensation regardless of receiving a 4.4 million shekel share from the general property split.
Legal representatives for the husband announced plans to appeal to the Supreme Court, contesting the valuation metrics used for the diamond business. Meanwhile, representatives for the wife welcomed the decision as a crucial precedent protecting spouses with significant income disparities in long-term marriages.
