Question 1

What happens to the family home and mortgage in a divorce?

Accepted Answer

The family home — including any outstanding mortgage — is subject to the equalization of resources principle in Israeli family law. On divorce, the couple must either: (1) sell the property and split the proceeds (net of mortgage); (2) one spouse buys out the other's share and assumes the mortgage; or (3) reach a different arrangement by agreement. The bank's consent is required for any change to mortgage responsibility.

Question 2

Can one spouse continue living in the home after divorce?

Accepted Answer

Yes — but the legal and financial arrangements must be formalised. If one spouse stays in the home, they generally must compensate the other for their share of the equity (the property value minus outstanding mortgage). The departing spouse must also be released from mortgage liability — which requires bank agreement and usually means the remaining spouse refinances in their own name.

Question 3

How is the value of the family home calculated for division purposes?

Accepted Answer

The starting point is the current market value, assessed by a licensed appraiser. The net equity — market value minus outstanding mortgage balance — is the amount to be divided. Additional adjustments may be required for improvements paid by one spouse, or for assets protected by a prenuptial agreement.

Question 4

What if one spouse refuses to cooperate on the sale or transfer of the property?

Accepted Answer

If a spouse refuses to cooperate in selling or transferring the family home, the other spouse can apply to the Family Affairs Court for an order compelling the sale. The court can appoint a receiver to manage the sale process if one party continues to obstruct. Adv. Elmaliach handles contested property proceedings as part of the divorce representation.

Question 5

Can a spouse be removed from the mortgage without the bank's consent?

Accepted Answer

No. The mortgage is a contract between both spouses and the bank. Removing one spouse's name requires the bank to agree to release them from liability — which typically means the remaining spouse must qualify for the full mortgage in their own name, or the mortgage is refinanced. A court order dividing the property does not automatically release a spouse from mortgage liability.

Question 6

What about child support and the family home?

Accepted Answer

In Israeli divorce proceedings, the right of children to reside in the family home is considered alongside custody arrangements. A court may order that the home not be sold until the youngest child reaches a certain age, particularly where the children are in the primary custody of the parent who remains in the home. Adv. Elmaliach addresses both the property and custody aspects of divorce proceedings.

Divorce and Mortgage — What Happens to the Family Home

The Family Home in Divorce

Frequently Asked Questions

Family Home & Divorce Question?