Social benefits, including pension ,severance pay, benefit funds, funds, various retirement and insurance programs, etc., that have been accumulated in the course of the marriage are the family’s back-up financial assets, forming part of the balancing of resources between the spouses upon the termination of their marriage (concerning couples that were married as of 1974 onward) or part of the joint assets to be distributed in equal shares upon the distribution of the property between the spouses whose property relations are governed by the property sharing rule (namely, who were married before 1974 or are common law partners).
The aforesaid applies to rights that have reached maturity (to be distributed immediately) and to rights that have not yet matured (to be distributed between the parties on the future due date thereof, while until such time the court orders would ensure the protection of such rights for the non-registered spouse).Future rights which have not yet matured may be capitalized in agreement between the parties and they may be settled by a one-time payment on the date of the distribution of the property or the balancing thereof.
In the event that monthly pension payments are made to the husband and, at the same time, the wife is entitled to monthly alimony, it was held that the wife is entitled to select between alimony or pension payments, or else this would amount to double payments.
In case of non- transferrable rights which have been accumulated, the balancing of these rights or their distribution is done, where practicable, by means of mutual setoffs from another property in a manner that does not adversely affect the accumulated rights themselves.
A recent Supreme Court case law held that the wife’s share in the funds of the monthly pension of her husband in the IDF would be transferred to her by her husband and not by the entity actually holding the rights (paymaster general administration – the IDF).
The district court has ruled that taxation on pension funds will be based upon the tax rate of the funds registered owner, even if the other spouse’s tax rate is lower.