Table of Contents
Why the Court Agreement Isn't Enough for the Bank
In Israel, property division during divorce is regulated under the Marital Property Law (for couples married after 1974) or under the "Sharing Rule". The court can rule that the apartment transfers to the wife's (or husband's) ownership, and she will bear full responsibility for mortgage payments.
The Critical Gap
The bank is not a party to the divorce agreement and is not automatically bound by it.From the bank's perspective, both spouses signed the loan agreement as borrowers "jointly and severally". This means that even if you waived your rights to the apartment, you remain 100% exposed to the debt until an official mortgage transfer is completed.
What the Agreement Says
"The apartment will transfer to the wife's ownership and she will bear full mortgage payments"
What the Bank Sees
"Two borrowers signed the loan. Both are 100% responsible. Period."
The Contagion Effect: How Divorce Damages Your BDI
Contagion Effect
Joint Loans = Mutual Guarantee
When you took out a mortgage together, you both guarantee the entire amount. Not 50-50.
Bounced Standing Order = Marks Both
If during the conflict one party stops paying, the negative report is registered against both of you.
The Mark Stays for 3 Years
Without distinction of who is at fault - the negative record remains in the credit system for three years.
What This Means in Practice
Even if you're not at fault for the delays - if your ex didn't pay their share, your BDI will be damaged and this will affect your ability to get a new mortgage, loans, and even rent an apartment.
RealFix Solution: Financial Engineering for Divorce
If you're looking for a divorce loan or need to buy out your ex's share but the bank is refusing, there are several advanced solutions available:
Credit Entity Separation Strategy
Opening separate bank accounts and taking separate bridge loans to close the negative balance in the joint account, even before the final divorce, to protect your personal BDI.
Using Dormant Capital
Using parents' assets (e.g., through a reverse mortgage) to inject equity that enables debt closure without strict income tests.
Non-Bank Mortgage & Debt Consolidation
Many families arrive at divorce with "toxic" debts. Non-bank institutions(Migdal, Harel, Clal) can approve financing up to 70-80% of property value.
Example: Spreading a 200,000 NIS debt into a long-term mortgage can reduce monthly payments by thousands of shekels, providing breathing room even for those already classified as credit-refused.
Why RealFix Succeeds in Divorce Cases
26 Years Experience
Thousands of complex divorce cases successfully handled
Situation Sensitivity
We understand it's a difficult time and respond accordingly
80%+ Success Rate
Even in cases rejected by banks