Earlier this month, the Family Court in Tel Aviv ruled in an extraordinary divorce case between a divorced couple. The court revealed that the husband concealed assets worth tens of millions of dollars through trusts and foreign corporations. One property—a luxury home where the couple lived in Israel—was registered in the name of a company, leaving the wife destitute after separation. The judge stated: “This is an outrageous case where the man set a supreme goal—not to pay his ex-wife a single shekel.”
By Dror Neer Kastel, Nadlan Center
The Family Court in Tel Aviv has ruled that a man must pay his ex-wife $50 million after hiding a $25 million luxury home in Israel—along with other assets—by registering them under a company he controlled. He concealed the assets using tax schemes, trusts, and foreign corporations.
The couple met in the 1990s while working together at an American bank. The wife was only an American citizen at the time, and the husband held Israeli, German, and American citizenship. They married in 1997 and had four children, all now adults. The wife, a Harvard graduate, has not worked for two decades, while the husband held key positions in leading global capital markets and investment firms, earning a hefty salary.
In 2000, the wife filed for divorce, citing the husband’s addiction to stimulants and violent, aggressive behavior. She later withdrew the petition. The couple then moved to London, and in 2003, spent a period living in Israel.
In 2005, the husband was indicted in the U.S. for fraud, tax evasion, and providing false statements to authorities. He allegedly hid about $2.5 billion through corporate structures used as tax shelters. He pled guilty in a plea deal and was fined $10 million. In 2008, the family settled permanently in Israel.
The ruling notes the family lived an ultra-high‑end lifestyle, residing in a luxury home in an upscale community. Their home spanned roughly 1,600 square meters and featured an elevator, under-floor heating, three kitchens, a gym, spa, swimming pool, and tennis court. The property was registered under a foreign corporation called Alabama, allegedly established by a trust. The woman claimed that the house was purchased by the couple, but was registered under the company for reasons determined by the husband.
The couple separated in 2016. Since then, 25 legal files have been opened, and around 500 judicial decisions issued. Apart from ownership of the luxury home in Israel, disputes centered on the extent of marital assets. The wife claimed the husband hid assets through complex legal structures, while he maintained the assets were hers and denied hiding anything
In her lawsuit against her ex-husband and the Alabama company, the wife claimed she discovered that most of the couple’s assets had been registered under trusts and corporations entirely controlled by him—leaving her with nothing. She said she had supported him for years while giving up her own career. She asked the court to declare her entitled to half of his and the Alabama company’s assets, even if they were held by third parties—including half the value of the luxury home. She also requested an unequal division of property in her favor.
The husband dismissed her claims as baseless, arguing that the assets were actually in her name. He said that after paying $25 million in penalties and expenses, he was left with virtually nothing, and that his conviction had made it impossible for him to work. He insisted the house belonged exclusively to the Alabama company, which he claimed was held in an irrevocable trust.
“He Set Himself a Supreme Goal—Not To Pay Her a Single Shekel”
In his ruling, Judge Yoram Shaked described the matter as particularly outrage‑inducing: “The man set himself a supreme goal—not to pay his ex-wife a single shekel.” He also sharply rejected the husband’s insistence that the assets were in the wife’s name. The judge concluded that although the house was registered under Alabama, it was marital property and the registration was intended to conceal it. He also determined that the husband was the true owner of the company, therefore the house must be included in the marital estate.
The court also found that the trusts the husband acknowledged were only part of the picture, and that additional undisclosed trusts likely existed. The wife had estimated the value of three trusts at around $45.2 million, which the judge determined were effectively under the husband’s control. As for the house, the court ruled it was marital property that had been falsely registered under Alabama.
In the end, the court awarded the wife approximately $50 million, based on an agreed valuation—$12.5 million as her half of the home’s value, and $37.5 million as her share of the trusts the husband controlled. The court also ruled that any rental income generated since their separation was considered joint property.
The court ordered the dissolution of joint ownership, allowing the parties’ attorneys to serve as receivers of the marital estate. It also required both the husband and the Alabama company to pay the wife’s legal fees—NIS 2.5 million in attorney’s fees and an additional NIS 100,000 in court costs.
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