Court Rules Husband Must Buy New Apartment for Ex-Wife Following Prenup Dispute
The Tel Aviv District Court ruled that a husband must purchase a new apartment worth over 5 million NIS for his ex-wife per their prenuptial agreement, rejecting his attempt to substitute it with an existing property.
The Tel Aviv District Court recently ruled on the interpretation of a prenuptial agreement between a couple married for nine years with three children. According to the 2014 agreement, all property registered in the name of either spouse belongs to them entirely. However, the husband, a businessman, agreed to transfer a Sharon region apartment to his wife upon separation and committed to purchasing an apartment worth $1.15 million if they had three or more children, with half to be registered in the children's names and half in the wife's name. The wife was also granted a lifetime right of residence.
The couple separated in 2023, and a legal dispute ensued regarding the execution of the property clause. While the family court initially ruled that the husband could satisfy his obligation by transferring his existing Sharon apartment—which served as a security guarantee—the Tel Aviv District Court partially sustained the wife's appeal. The judges ruled that the explicit wording of the agreement requires a future purchase rather than the handover of pre-owned real estate. The court emphasized that defining the existing apartment as collateral clearly indicated the parties did not view it as the ultimate permanent residence for the family upon separation.
Judicial Clarification on Real Estate and Currency Valuation
The appellate judges—Einat Ravid, Naftali Shilo, and Yekutiel Eliyahu—determined that the literal wording of the contract must be upheld. At the same time, the court rejected the wife's demand that the newly purchased apartment be located specifically in Tel Aviv, noting that the agreement placed no geographic limitations on the acquisition. Regarding the financial valuation, the court ruled that the dollar amount must be calculated based on the exchange rate at the time of the 2023 separation (3.66 NIS per dollar), totaling 4.2 million NIS. Because the purchase should have taken place at separation, the husband was ordered to add statutory shekel interest, bringing the total obligation to approximately 5.15 million NIS.
"The ruling emphasizes the critical importance of precise wording in prenuptial agreements, including adjustment mechanisms and enforcement methods upon separation," noted Adv. Matat Pelsner, representing the husband.
Rejection of Maintenance Reduction Claims
Concurrently, the court dismissed the husband's petition for a reduction in child support and maintenance, in which he claimed a severe deterioration in his financial standing. Evidence presented to the court proved that his claims of financial collapse were unfounded, revealing substantial income from his business ventures, an extravagant lifestyle including luxury rentals and expensive vacations, and net profits amounting to hundreds of thousands of dollars.
Adv. Roy Sidi, representing the wife, emphasized the landmark nature of the verdict: "This is an important and precedent-setting ruling. First, it reaffirms that clear contractual language takes precedence. Second, a defaulting party cannot profit from delaying fulfillment of obligations, hence the imposition of retroactive interest." Both parties were ordered regarding specific legal costs, while the core appellate judgment cemented strict adherence to written financial agreements.
