In some cases one spouse comes into the marriage with an apartment carrying a mortgage, and the mortgage is then paid by both spouses, or by that spouse alone. The registered owner is certain the apartment is theirs and theirs only. But if a dispute or separation arises, the court can rule that the apartment belongs to both spouses, or that the other party must be reimbursed half of the mortgage payments made over the years, or half the value of improvements to the property. As a general rule, where the couple lived together for many years, raised children together, and improved or renovated the apartment, there is a real chance the court will find it belongs to both of them, or, alternatively, will order the registered owner to pay the other party half of the mortgage payments, half the value of the improvements, or half the cost of the renovation. That is exactly why it is worth consulting a professional lawyer who knows this field: proper guidance can spare the couple lawsuits and litigation altogether.
Prenuptial agreement for an apartment with a mortgage: a full explanation from Adv. Avital Horef
A prenuptial agreement for an apartment
A prenuptial agreement for an apartment, known in Israel as a financial agreement, is meant to protect the apartment when the couple marries. It applies in three situations: an apartment purchased before the marriage, an apartment received as a gift before the marriage, and an apartment inherited before the marriage. The agreement matters a great deal, because it ensures that in a divorce the apartment remains 100% the exclusive property of the spouse who acquired it. This becomes critical precisely because the couple lived in the apartment together over the years, raised their children there, carried a mortgage, and renovated it together. This arrangement is not for everyone, since it concerns an apartment that belonged to one spouse rather than one the couple bought together. Where that is the situation, a prenuptial agreement for an apartment with a mortgage is essential: it protects the apartment and prevents painful disputes later.
A prenuptial agreement for an apartment before marriage
Many couples marry, run a joint household, or live as common-law partners while one of them owns an apartment registered in their name. A prenuptial agreement for an apartment made before the marriage determines that in the event of divorce or separation, the apartment remains the property of the spouse who purchased or inherited it. The purpose of the agreement is to state clearly that if common-law partners separate, or a married couple divorces, each party keeps the property they accumulated before the marriage.
