Lawyers
What is a career asset and how the asset is divided during a divorce
The purpose of this article is to discuss the significant aspects pertaining to the division of career assets and reputation between divorcing couples. The value of these assets is difficult to estimate since they differ from actual assets. The ruling also recognized the possibility of dividing them between spouses.
Generally, in any divorce agreement, the court or rabbinical court hearing the case will balance the various assets of the parties involved, including: the residential apartment, movable assets or other economic rights that the couple is entitled to jointly or separately.
Furthermore, the ruling raised the issue of dividing spouses’ career and reputation assets. Sometimes one spouse accumulates assets and a professional reputation in their field of work, while the other spouse handles household issues, such as raising the children. On the surface, the distribution of these assets appears fair, but it is difficult to estimate the value of these intangible assets, and thus the ruling has struggled with this issue.
A central conceptual foundation for the distribution of career assets can be found in in the rule of sharing the rule of sharing Israeli law considers assets accumulated by spouses in a joint household to be joint assets.based on the concept that both partners contribute equally to the well-being of the family In contrast, the spouse who is more concerned with the family’s financial well-being is entitled to enjoy the family’s financial assets.
What are Career Assets?
A Career Asset is defined as the future earning capacity of a spouse accumulated during his or her marriage. A person can gain these credentials by being promoted at work as an employee, establishing a reputation as an independent trader, or obtaining a license to practice a profession such as medicine, law, or accounting.
As a result, valuing these assets is challenging due to the speculative nature of the assets and the difficulty in evaluating the contribution of the other spouse to achieving the same reputation and earning capacity. As a result, valuing these assets is challenging due to the speculative nature of the assets and the difficulty in evaluating the contribution of the other spouse to achieving the same reputation and earning capacity.
Here is more information on this matter: People 4623/04 A. v. B., Judge Eliezer Rivlin,
“…Sharing “career assets”: Individuals’ professional development is an integral part of their life stories. Their professional development is often intertwined with the professional development of their spouses, to the extent that the two together tell a common story. As one of the most important ventures in a marriage, the building of careers together is often the most important, and the increased earning capacity is arguably the most important asset, or the only significant asset from a financial standpoint, in many marriages…” (Dagan, in his above-mentioned book, p. 477). It is not uncommon for spouses to sacrifice education or employment, to work fewer hours, to sacrifice opportunities for promotion, and even completely give up a career in order for the other partner to develop himself. This is for the other partner’s good, for the family’s good, and for the sake of the relationship. Occasionally, one of the spouses takes on most of the housework and child care functions (referred to below as “the domestic spouse”), while the other spouse works outside the home to provide for the family (referred to below as “the external spouse”). Certainly, this division may reflect a gender bias, and in many families, both spouses contribute to the housework, raising the children, and supplying the household, and each derives satisfaction from and bears the burden of these two central responsibilities. We present the stone-test as an extreme case of a clear division between “domestic spouse” and “external spouse” to convey the essence of the values and interests involved. The solution to every case will be determined according to the balance in the lives of the spouses who will appear before the court, as we will see below.”
As such, the rule of sharing recognizes that one spouse contributed to the advancement of the career of the other spouse and thus allows him to enjoy all assets acquired during the marriage, tangible and intangible.
Calculation of career assets
Because each household is run differently, career assets are also calculated separately in each divorce settlement. The court will also assess, in any such calculation, the degree of sacrifice made by the other spouse, including the degree to which he gave up his financial independence and career in order to take care of the household, and the degree to which he contributed to achieving the same reputation as the court requires. As an example, if the other spouse is a celebrated artist with natural talent who became famous long before the marriage, or if the other spouse has an equally successful career, then the balance of the career assets will be minimal and no additional balance payment will be required.
Even when both spouses worked in the same profession, balancing payments have been terminated. In one case, a family court ruled that a man’s payment to his ex-wife was terminated because of the disparity between their salaries. Due to the woman’s responsibility for the upkeep of the house and the raising of her children, the court found that the wage disparity justified the balance.
One court recognized the necessity of dividing career assets in an agreement between two childless high-schoolers due to the wife’s responsibility for taking care of the household, which enabled her husband to advance in his career.
Distribution of career assets at the Rabbinical Court
According to Israeli law, divorce and property division can be discussed in both the Rabbinical Court and the Family Court. The Rabbinical Court is subject to the laws of the Supreme Court, however there may be differences between the rulings of the various courts. In the case of career property distribution, the Rabbinical Court will ultimately rule according to Jewish law.
The court does not recognize the rule of dividing career assets, since assets registered in the name of the owner are his assets, and it is important to note that career assets are assets that have not yet come into existence. As a result, they are not tangible and are therefore treated differently by Jewish law, and according to this interpretation, they cannot transfer the family unit to the wife from the moment of liquidation. The Rabbinical House debate damages the right of many women to enjoy their spouse’s career assets, since career assets are often accumulated by men.
Thus, a possible strategy for dividing the property and protecting it, is to appeal to the Rabbinical Court, which is inclined to respect the registered ownership more and interpret the law of sharing in a certain manner. It is also possible to protect assets by challenging the woman’s claims of her contribution to her career success or by proving equal parentage, among other things.
The distribution of career assets in family court
In addition to the civil issues and the division of property, the family court is also authorized to discuss a variety of divorce-related issues. As the Family Court is subject to the Supreme Court’s rulings, it is required to consider the Supreme Court’s principle of balancing career assets. As a result, filing for divorce in the Family Court may allow the spouse to benefit from the division of career assets (if the appropriate circumstances exist) and in an easier manner than filing in the Rabbinical Court.
In Conclusion
Consultation with a family and divorce lawyer regarding career assets
Often, career assets are a major point of contention during a divorce. Career assets are a complex issue.
We recommend the help of a lawyer specializing in family matters and divorce in order to make sure that your rights are preserved.
The family law department at the law firm Mor & Co. is a department with a lot of legal experience. In addition to handling complex family and divorce matters, we represent clients in both courtrooms and rabbinical courts.
As we have extensive experience in the legal handling of divorce cases, we undertake to do our best and make available to our clients our rich experience, while being careful in all matters related to the legal process and taking care of your interests.
Get legal advice on divorce/property division and career assets at 02-595-3322 or on WhatsApp at 050-811-6181.
