Divorced in Tama 38: Protecting Your Rights in Property Division in Building Reinforcement | Attorney Rozil Amir

What is Tama 38 and Why Does It Affect Divorces and Property Division?

Tama 38 — Outline Scheme for Area 38 — is a government program in Israel for strengthening buildings and urban renewal. It enables apartment owners in older buildings to improve seismic safety, add stories, and increase apartment size. However, when a couple going through divorce holds a property participating in Tama 38, the issue becomes highly complex.

During divorce proceedings, property division is one of the most sensitive issues. When the property is under Tama 38, several factors must be considered: Is the project still in the planning stage? Is it under construction? Has it already been completed? What is the current value of the property? What will be the value after project completion? Are there financial obligations to the Building Strengthening Fund?

Each of these questions directly impacts the division of assets between spouses. A boutique law firm like ours provides personalized and discreet guidance through every stage of the process, from property valuation to signing the divorce settlement.

Why Is Divorce in Tama 38 Different From Ordinary Divorce?

In standard divorces, property division is based on the property's value at the time of divorce. However, in Tama 38, the property is in a transitional phase: it may be mid-construction, in planning, or in later stages of the project. This means the property's value may change significantly until project completion.

Additionally, property owners may be required to contribute funds to the Building Strengthening Fund or make additional improvements. These expenses affect the property's value and the spouses' ability to finance divorce obligations. Therefore, when dividing property, accurate property valuation and understanding all project-related obligations are essential.

Steps in Divorce Involving a Tama 38 Property

• Property Valuation: In the first stage, the property's value at the time of divorce and its expected value after project completion must be assessed. This assessment depends on the project's stage, remaining costs, and expected gains.
• Obligation Review: It must be determined whether there are obligations to the Building Strengthening Fund, unpaid construction costs, or other liabilities related to the project.
• Negotiation on Asset Division: Based on the valuation and obligations, the spouses and their legal advisors engage in negotiations over property division. In some cases, the Family Court may be involved.
• Divorce Settlement: After agreement is reached, the divorce settlement is updated to include all details related to the Tama 38 property, including how assets are divided, responsibility for future construction costs, and rights and obligations after project completion.

Factors Affecting Property Division in TAMA 38 Properties

Project Stage

The project execution stage is one of the most important factors. If the project is still in the planning stage, the property value may be lower, but the risks are also greater (unexpected costs, construction delays). If the project is nearly completed, the value is higher, but remaining expenses are smaller. A boutique law firm will help you understand the implications of each stage on property division.

Current Value vs. Future Value

When dividing property in a TAMA 38 property, you must decide: should you divide according to the current property value (which is lower), or according to the expected value after project completion (which is higher)? This is a complex legal and financial question. If dividing by current value, the spouse remaining in the property may benefit from future improvements. If dividing by future value, they may be liable for future construction expenses. Attorney Rozil Amir will explain both options and help you choose the best path for you.

Obligations to Building Reinforcement Funds

TAMA 38 property owners may be required to contribute funds to building reinforcement funds or additional improvements. These obligations affect the net value of the property. When dividing property, you must decide who will bear responsibility for paying these obligations — the spouse remaining in the property or both? This is an important legal question that requires professional legal consultation.

Rights and Additional Legal Issues

In a TAMA 38 property, other issues must also be considered: who will own the apartment after project completion? Will both spouses be partners in the new property? Or will one buy out the other's share? Is there an agreement between the spouses regarding the sale of the property after divorce? All these questions must be addressed in the divorce agreement clearly and unambiguously.

Comparison Table: Different Scenarios for Property Division in Tama 38

Below is a table comparing different scenarios for property division in a Tama 38 property. Each scenario reflects a different situation depending on the project stage and the agreement between spouses:

Each scenario has its own advantages and disadvantages. The choice depends on your specific circumstances, the project stage, and the agreement between spouses. Attorney Rozil Amir will help you analyze each scenario and choose the best path for you.

Family Law and Property Division in Divorce — What You Need to Know

The Matrimonial Property Law — 1963

The Matrimonial Property Law establishes the rules for property division in divorce proceedings in Israel. According to the law, assets acquired during marriage are considered joint property and must be divided fairly. When dividing property, the family court considers various factors, including each spouse's contribution to acquiring the asset, the needs of each spouse, and the general conditions of the family.

Property Division in TAMA 38 Properties

When dealing with a TAMA 38 property, the family court also considers factors unique to TAMA 38: the project stage, the current and future value of the property, obligations to building reinforcement funds, and any other expenses related to the project. The court may order a professional appraisal of the property to ensure that the property division reflects the actual value of the asset.

Divorce Agreement — Highly Important

Generally, if the spouses agree on property division, they can sign a divorce agreement that sets out the terms of the divorce, including property division. This agreement must be approved by the family court. If the divorce agreement is clear and fair, the court will typically approve it. Our boutique law office will ensure that your divorce agreement contains all required details and protects your rights.

Spousal Support and Property Division

In addition to property division, divorce proceedings may also involve spousal support. Spousal support is a monthly payment made by one spouse to the other spouse following the divorce. Spousal support depends on the income of the spouses, their needs, and other factors. When determining spousal support, the family court also considers property division — if the property division was fair, spousal support may be lower or may not be required at all.