More and more couples in Israel live together for years without marrying. Legally, cohabiting partners (known in Israel as “common-law spouses”) enjoy many of the same rights as married couples, but when it comes to property the picture is less clear. A property agreement is the tool that lets you decide in advance what belongs to whom.
Why do cohabiting couples need an agreement?
The Spouses (Property Relations) Law applies to married couples. It does not apply to cohabiting couples, and if they separate the court examines the matter under rules developed in case law, including whether there was an intention to share a particular asset. The result is uncertainty: an apartment one partner bought before the relationship, a savings account or a business can become the subject of a dispute. A written agreement removes the need to prove what the intention was.
What should the agreement cover?
- Which assets remain each partner’s own, above all apartments bought before the relationship.
- How assets bought together are divided, and what happens if each partner contributed a different amount.
- Who pays what towards running costs and the mortgage, and what those payments mean.
- What happens to the shared home on separation: who stays and how the other partner’s share is calculated.
- Arrangements for debts, loans and guarantees.
Does the agreement have to be approved?
The law does not require cohabiting couples to approve a property agreement, and a signed agreement between them can be valid as a contract. Even so, approval by the Family Court has advantages: it reduces the risk of a later claim that one partner did not understand what they signed, and it can serve as evidence of cohabiting status with bodies such as pension funds.
And what if you marry later?
This point surprises many couples. In recent years the courts have issued differing decisions on whether an agreement signed and approved while the couple were cohabiting continues to apply after they marry. In a 2024 judgment of the Central District Court (Family Appeal 36827-12-23), it was held that such an agreement does not automatically apply after marriage and must be approved again. Other decisions have upheld an agreement that expressly stated it would continue to apply after the wedding.
The practical conclusion: if you are cohabiting and may marry, draft the agreement from the outset so that it also addresses that situation, and plan to have it approved again close to the wedding, by a notary before the wedding or by the court afterwards. For the approval routes, see how a prenup is approved in Israel.
Property agreement or cohabitation agreement?
For cohabiting couples the two terms are sometimes used for the same document. The main difference is content: a cohabitation agreement may include, in addition to property, a declaration about the relationship itself and when it began. What matters is that the document answers the questions relevant to you.
Next steps
Every couple comes with different circumstances, so the agreement should be built around yours. At Paz Israel & Co. Law Office we review your assets, your plans for the future and the right approval route with you. To learn more about the process, see our prenuptial agreement lawyer page, or contact us to arrange a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information about Israeli law and is not legal advice or a substitute for reviewing your specific circumstances.