Wednesday, June 22, 2011

Is earning power an asset ?

Ora and Ehud were both students when they met.Ora was studying to be a nurse and Ehud was studying to be a doctor.


They got married after Ora completed her nursing studies and for many years she supported Ehud during his long studies to become a surgeon.Ehud became a very successful surgeon and today is head of his department at the hospital he works at. Ora is the mother of three children and for most of her career she worked part time to allow her enough time to take care of the children. In the last few years the relationship between and Ora and Ehud has deteriorated and they have decided to get divorced.

The earning power of Ehud is much higher than the earning power of Ora. In fact from an economic point of view it is the major asset that Ehud has. The question is; is it an asset that has to balanced in accordance with the Law of Financial Relations between Couples. In other words does Ora have a claim against this asset ? The issue seems to have been resolved by the recent amendment to the law which gives the court the right to take into consideration the earning power of each of the parties when it decides how the assets should be balanced so that both parties come out of the marriage equally. How the distribution should be done is still not clear and is a matter of debate , we shall have to wait for more court decisions and precedents on this issue.