Family file (Jerusalem) 31375-07-19 E.C. v. 20

Judgment

The matter of this lawsuit is the plaintiff's request that the court cancel the prenuptial agreement signed between the parties and approved by the court on March 15, 2018.

In addition, the plaintiff requests a declaration that she is the owner of half of the rights, funds or property accumulated from the date of her marriage to the defendant, and she also requests that the court order the dissolution of the partnership in all the assets and rights detailed in the statement of claim.

It is also requested to order the dissolution of the partnership in all the assets registered in the defendant's name together or with others.

The cancellation of the agreement necessitates, according to the plaintiff, that the defendant made false representations to her regarding the scope of his property, concealed property and funds and misled her in a manner that amounts to fraud, deception and lack of good faith.

Background to the process

1. The parties married in late 2003 and have two children, born in 2013 and 2015.
2. Over the years, the parties have drawn up two agreements. The first of these was signed on April 26, 2015, and is defined as an agreement "Division of Property, Assets and Existing Funds".  This document has never been certified by any judicial instance.
3. As part of the agreement, the defendant declared that his business had "small and unprofitable profits", and on this basis it was agreed in clause F that the parties would not open the business for valuation and that each would remain exclusively with the business belonging to him ("xxx" for the defendant and "xxx" for the plaintiff).
4. According to clause C of the agreement, the parties reached a division of the funds for the sale of apartments, which, after deducting expenses and debts, left a balance of ILS 2, 300, 000 for distribution. The defendant undertook to transfer to the plaintiff the sum of ILS 1, 200, 000 (consisting of half of the sum plus ILS 50, 000 that the defendant undertook to add from her share).  The defendant claims that he gave her a check for this sum at this time, but she did not deposit it, and they agreed to a future calculation.
5. As will be detailed below, the parties disagree on the question of whether the agreement was actually executed. The defendant claims that it was carried out and the plaintiff that it was not carried out and that she did not receive the funds promised to her by virtue of it.
6. On March 15, 2018, the court (the Honorable Judge Eran Shilo) approved the prenuptial agreement that is the subject of this lawsuit between the parties. The agreement, which establishes a regime of separation of property between the parties, is comprehensive and does not contain details of the parties' property, except for two companies - the husband's xxx and the wife's xxx Ltd.
7. On July 14, 2019, the lawsuit was filed to cancel the agreement.
8. Lengthy discovery and review proceedings were conducted and the value of the parties' companies was assessed. The value of the XXX company was estimated at approximately ILS 1, 226, 000 and the value of the XXX company was estimated at approximately ILS 536, 000 (or approximately ILS 335, 000 according to another valuation method).

Disputes between the parties