A married couple who divorced signed during the marriage an agreement titled "Prenuptial Agreement" before a Notary. The agreement stipulated, inter alia, that in case of selling their home, the wife would receive a refund of ILS 800,000 for the apartment she had prior to the marriage and the contents of the apartment. The agreement was not approved by a Court or a religious Court.
The Court found the agreement invalid. Under the Spouses' Property Relations Law, a prenuptial agreement signed after marriage requires Court approval and only if the Court is satisfied that it was entered into freely, and that both parties understood precisely what was involved and the possible consequences of their signing it. In exceptional cases, an agreement not approved by the Court can be recognized if both spouses performed it for a long time and one of them relied on it and was harmed by it. Here, a Court did not approve the agreement and the exception does not apply because it was not substantially performed. Also, because the agreement was found to unreasonably prejudice the husband, the Court's formal approval is essential and cannot be waived. Therefore, the apartment belongs to both parties in equal shares.