I divorced my husband a few years ago. We made a divorce agreement in which it was stated that his rights in our flat would be transferred to me. The reason for this was that he wanted to protect the family home from creditors whom he owed large sums of money. The agreement was authorised in court and incorporated into a judgment. Recently my ex-husband filed a plea at the family court for a declaratory injunction declaring that half the rights in the flat belonged to him . He claimed that the agreement was only a cover – and should be cancelled. What are his chances of success ?
By: דיאנה שאלתיאל•Published on: 10 May, 2022Courts have ruled that an agreement to transfer property to avoid creditors is not an empty contract even though it may be made in bad faith regarding the creditors – as long as it reflects the parties’ wishes. This is so even if it is proved that the person transferring the property feared creditors. Furthermore, if the party who transferred the property was actually present in court when the agreement was authorised and declared that he had signed it of his own free will, after understanding its contents and implications, his later claims that he did not declare the truth cannot be accepted. His original declaration is favoured. The fact that the side transferring the property only filed the plea several years later supports the thesis that there was a genuine intention on his behalf to transfer his rights in the property.