He hid a penthouse worth millions from his wife - and will pay half
The judge rejected a claim to cancel a prenuptial agreement despite a $400,000 account that was exposed, but ordered the husband to share the penthouse he hid in Jerusalem.
A woman who discovered after the separation a US bank account with almost $400,000, a warehouse purchased without a contract, and two apartments not mentioned in the prenuptial agreement, demanded that the Family Court cancel the agreement and redistribute the property. Judge Moshe Braun rejected the claim for cancellation, but determined that a penthouse in Jerusalem, which the husband admitted he hid, will be included in the resource balancing. The wife will receive half of its value—an asset the parties estimated at 3.5 to 4.5 million shekels. The husband was also ordered to pay 40,000 shekels in legal costs.
The couple married in late 2003 and has two children. In March 2018, the court approved a prenuptial agreement establishing full separation of property. In July 2019, the wife filed a claim for cancellation, alleging misrepresentation and concealment of assets.
The difficulty of canceling an agreement
Judge Braun recalled that a prenuptial agreement approved by a court carries the weight of a judicial judgment, making its cancellation extremely rare. The burden of proof lies with the plaintiff, who must demonstrate a defect in the formation of the deal, such as deception, duress, or mistake.
However, two rules work in favor of the spouse from whom assets were hidden:
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"No mention - no waiver": if an asset was not mentioned, it is presumed that no one waived it.
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"Admission and displacement": if a spouse admits to hiding an asset but claims it was a gift, the burden of proof shifts entirely to them.
Hidden assets
During the proceedings, it was revealed that a US Chase bank account held $399,989 ten days before the agreement was approved. The judge found it proven that the wife was aware of this account and rejected the claim. Similar claims regarding a warehouse and a cottage in Beit Shemesh were also dismissed.
Ruling on the Jerusalem penthouse
The case of the penthouse was different. The husband admitted to hiding the apartment but claimed it was a gift from his parents in 2016. However, evidence, including recordings and financial transfers, refuted the gift theory. The judge noted the suspicious absence of testimony from the defendant's parents and the economic illogicality of them transferring their only apartment to one of their 12 children.
The judge concluded: "The alleged gift transaction did not reflect reality." The agreement remains in force, but the husband must pay the wife half the value of the penthouse as of March 15, 2018, plus linkage differentials and interest.
