Can parents reclaim money they gave a married couple to buy an apartment if the couple divorces in Israel?

Two different claims arise, and they are often confused. The first is the parents' own claim that they lent the money and want it back, which is decided under general contract law and turns on evidence of a repayment obligation such as a written agreement, a promissory note or a registered mortgage. The second is the spouses' dispute over whose money it was, which the Family Court decides under the Spouses (Property Relations) Law. A gift made to one spouse alone stays outside the balancing under Section 5, but courts look at how the money was used. Funds paid into an apartment registered in both names are frequently found to have been intended for both spouses.

Families from abroad often move money informally, with a transfer labeled only as help with the apartment. When the marriage ends, a parent's claim filed years later without documents usually fails, and a claim that surfaces only after divorce proceedings begin invites suspicion that it was invented to shift assets. Parents who expect repayment should sign a short loan agreement with both spouses at the time of the transfer and state whether interest or linkage applies. A spouse who wants parental money kept as separate property can record that in a property agreement approved under Section 2 of the same Law. Our guide to dividing assets on divorce in Israel explains how the marital estate is calculated.

From the full guide: Division of Assets on Divorce in Israel: Complete Guide

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