For couples married from 29 January 2019, Regulation 2016/1103 points to the law of the first common residence after the marriage.
Under section 5 of the Israeli Spouses (Property Relations) Law, each spouse is entitled to half the value of the assets, except pre-marital assets, inheritance and gifts.
Under Romanian law, each share is set by contribution to the purchase and the debts, and until proven otherwise the contribution is presumed equal.
Dividing property by an Israeli judgment requires a recognition procedure in a Romanian court: finality, jurisdiction and reciprocity.
Selling the property requires the signatures of all registered owners. Romanian tax on sale: 3% up to three years, 1% after that.
Property in Romania in a divorce: the short answer
When an Israeli couple divorces, the property in Romania is usually divided under Israeli law, the Spouses (Property Relations) Law and its balancing of resources, because that is the law EU Regulation 2016/1103 and the Romanian Civil Code point to when the couple lives in Israel. But registration happens in Romania: a partition agreement before a Romanian notary, or an Israeli judgment that has been recognised by a Romanian court. Selling the property to a third party requires the signatures of all registered owners.
I know this is a question nobody asks out loud when buying a home with their spouse. But those who do ask it in advance usually find that the simplest answer is a clear agreement, not a legal battle in two countries.
Three separate questions
A divorce involving property in Romania raises three different questions, and it is worth not mixing them up:
- Which law decides what belongs to whom? Israeli or Romanian.
- Who decides? A court or rabbinical court in Israel, a court in Romania, or an agreement between you.
- How does the decision become a registration? In Romania a right in real estate exists only once it is entered in the ANCPI land register.
Which law applies: Israeli or Romanian
Couples married on or after 29 January 2019. Romania takes part in EU Regulation 2016/1103. Without a choice of law, under Article 26 the law of the first common habitual residence after the marriage applies, and failing that, the law of the common nationality at the time of the marriage. The regulation applies even when the law it designates is that of a country outside the EU, such as Israel.
Couples married before that. The Romanian Civil Code (Articles 2589–2590) refers to the law chosen by the spouses and, failing a choice, to the law governing the effects of the marriage: the common habitual residence, then the common nationality.
And what does Israeli law say? Under section 15 of the Spouses (Property Relations) Law (in Hebrew), property relations are governed by the law of the spouses' domicile at the time of the marriage, and they may change this by agreement.
Bottom line: for a couple who married in Israel and live there, every route usually leads to Israeli law, even when the property is in Bucharest. A couple who moved to Romania, or where one spouse is a Romanian citizen, needs a case-by-case review.
The two regimes, side by side
| Topic | Israeli law (Spouses Property Relations Law) | Romanian law (community of property) |
|---|---|---|
| During the marriage | Each holds their own property | Property acquired during the marriage is, as a rule, joint |
| When the marriage ends | Balancing of resources: half the value of the assets | Partition according to each spouse's contribution |
| The default | Half each | Presumption of equal contribution, until proven otherwise |
| What is excluded | Pre-marital assets, inheritance and gifts | Separate property, including inheritance and gifts, as a rule |
| Sale during the marriage | The registered owner signs, and the spouse's rights are examined in the balancing | Joint property: only with both spouses' consent |
Israeli law. The law applies to those married from 1.1.1974. Under section 5, when the marriage ends each spouse is entitled to half the value of the assets, except assets they had before the marriage or received by inheritance or gift. Even a villa registered in one of your names may be included in the balancing, if it was bought with joint money.
For a couple who married in Israel and live there, every route usually leads to Israeli law, even when the property is in Bucharest.
Romanian law. Under Article 357 of the Romanian Civil Code, on partition each spouse first takes their separate property, and then each one's share of the joint property is set according to their contribution to acquiring it and to the joint debts. Until proven otherwise, the contribution is presumed equal. And under Article 346, selling or charging a joint asset requires the consent of both spouses.
An Israeli judgment in Romania: what is needed
Israel is not an EU member, so an Israeli judgment is not registered in Romania automatically. The Romanian Code of Civil Procedure distinguishes between two types:
- Decisions on personal status of citizens of the country where they were given, such as the divorce itself, are as a rule recognised by operation of law (Article 1094).
- Other decisions, such as dividing property, require a recognition procedure in a Romanian court (Article 1095 onwards). Among the conditions: the judgment is final, the court that gave it had jurisdiction, and there is reciprocity between the countries. Actual enforcement also requires an enforcement procedure.
In practice: even after everything has been decided in Israel, expect another procedure in Romania, with translations, apostilles and a local lawyer. It takes time and costs money.
In practice: three ways to finish
- An agreement and partition before a Romanian notary. The fastest route when both sides agree. One receives the property, the other receives compensation, and the notary updates the registration. Someone who cannot attend gives a power of attorney, as we explained in our guide to a power of attorney.
- A sale and division of the proceeds. Both registered owners sign, and Romanian tax on sale is 3% of the transaction value if you held the property for up to three years, and 1% after that. Details in our guide to tax on sale.
- A court decision and recognition in Romania. The long and expensive route, when there is no agreement.
A Romanian mortgage in a divorce
A divorce does not change the loan contract. Whoever signed as a borrower remains liable to the bank, even if your agreement says the other will pay. The charge stays on the property, and transferring the property or changing the borrowers requires the bank. Talk to the bank before you sign an agreement, not after.
What to do on the day you buy
- A prenuptial agreement that mentions assets abroad. In Israel, a property agreement requires approval by a court or rabbinical court, or notarial certification when signed before or at the time of the marriage.
- A choice of law. Under Articles 22–23 of Regulation 2016/1103, spouses may choose the law of their residence or the law of the nationality of one of them. The agreement must be in writing, dated and signed by both of you.
- Registration that reflects the money. If you contributed 70/30, register those shares on the extract. For the registration options, see our article on whose name to register in.
- Documenting the source of funds. An inheritance or a gift from parents is excluded from the balancing, but you need to prove it.
Frequently asked questions
Which law applies to a villa in Romania when an Israeli couple divorces?
For a couple who married and live in Israel, usually Israeli law. EU Regulation 2016/1103 points to the law of the first common residence after the marriage, and the Romanian Civil Code points older couples to the law of their common residence. A couple who moved to Romania needs a case-by-case review.
The villa is registered only in my name. Is it mine in the divorce?
Not necessarily. Under the Spouses (Property Relations) Law, the balancing of resources looks at the value of both spouses' assets, except pre-marital assets, inheritance and gifts. A villa bought with joint money may be included in the balancing even when only one spouse is registered.
Is an Israeli court judgment enough to change the registration in Romania?
Not on its own. Dividing property by an Israeli judgment requires a recognition procedure in a Romanian court under Article 1095 of the Code of Civil Procedure, and sometimes an enforcement procedure too. When both sides agree, a partition agreement before a Romanian notary is faster.
Can the property be sold during the divorce?
Yes, if all registered owners sign and, if there is a mortgage, in coordination with the bank. Romanian tax is 3% of the transaction value for ownership of up to three years and 1% after that, and in Israel capital gains tax should be checked with a tax adviser.
What about the Romanian mortgage after the divorce?
The contract with the bank does not change by itself. Whoever signed as a borrower remains liable, and the charge stays on the property. Any change of borrowers or transfer of the property to one spouse requires the bank's consent.
The bottom line
When an Israeli couple divorces, Israeli law is usually what decides what belongs to whom, but registration, sale and mortgage take place in Romania and under its rules. The shortest route is an agreement, and the cheapest route is to think about it on the day you buy.
If you are about to buy and want to set up the registration correctly from the start, in our project in Balotești or anywhere else, book a 30-minute call with me. Together we will go through the questions worth bringing to the lawyers in both countries.
Moti Azulay, Compass Group Romania
Sources and data: Regulation (EU) 2016/1103 on matrimonial property regimes, EUR-Lex · Spouses (Property Relations) Law, 1973 (Nevo, in Hebrew) · codulcivil.ro: Article 357, partition of joint property · Romanian legislation portal: Civil Code and Code of Civil Procedure · legeaz.net: Article 1095, conditions for recognising a foreign judgment · Land registration authority (ANCPI) · National Union of Public Notaries of Romania (UNNPR).
This article is for general information only and is not legal, tax or financial advice. The information is correct as of October 2026. The applicable law depends on the date of marriage, place of residence, nationality and agreements between the spouses, and every case needs review by an Israeli family law attorney and a Romanian lawyer.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
