Arbitration

Can a divorcing couple in Israel use arbitration to divide their property?

Yes. Property division is a financial matter the spouses could settle by agreement, so Section 3 of the Arbitration Law 5728-1968 allows them to refer it to an arbitrator. Custody, parenting arrangements and child support are different, because they involve the child's own rights and remain subject to court oversight. Under Section 2 of the Spouses Property Relations Law 5733-1973, a property agreement between spouses needs approval, so the arbitration agreement is commonly submitted to the Family Court as well. The Family Court then confirms the award.

Spouses usually choose arbitration for privacy, speed or expertise, for example where the assets include a family business, stock options or real estate abroad that call for a specialist decision-maker. The arbitration agreement defines the issues, names the arbitrator, and often frees the arbitrator from the strict rules of evidence. After the award is made, either spouse can apply to confirm it, and the other can apply to set it aside on the limited grounds in Section 24 of the Arbitration Law, such as the lack of a valid agreement, denial of a fair opportunity to present the case, or an award contrary to public policy. The Family Court is the competent forum because the Family Courts Law 5755-1995 assigns it disputes between spouses.

The limits matter in practice. An award that also decides custody or fixes child support may be refused confirmation on those points, which leaves the couple to litigate them anyway. Before any claim is filed, the Settlement of Family Disputes Law 5775-2014 generally requires the spouses to attend mandatory information and coordination meetings, and an arbitration agreement reached at that stage can resolve the financial dispute early. Jewish couples should check whether either spouse has already filed a divorce claim in the Rabbinical Court that includes property, since parallel proceedings complicate the referral. A rabbinical court can also sit as an arbitrator if both spouses consent. The guide on mandatory divorce mediation in Israel explains the pre-filing process.

⚖ In Practice
  • Governing law: Sections 3 and 24, Arbitration Law 5728-1968; Section 2, Spouses Property Relations Law 5733-1973; Settlement of Family Disputes Law 5775-2014
  • Competent authority: Family Court (Beit Mishpat LeMishpacha) for approval of the agreement and for confirming or setting aside the award
  • Arbitrator fees: approximately NIS 600 to 1,500 per hour for an experienced family-law arbitrator, usually shared equally (2026)
  • Challenge deadline: 45 days from receipt of the award to apply to set it aside
  • Outside arbitration: custody, parenting time and child support remain subject to court review
  • Timeline: a focused property arbitration commonly finishes in 6 to 12 months, compared with 1 to 3 years of contested Family Court litigation

From the full guide: The Arbitration Process in Israel: Step by Step


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