Section 9(c1c)(4)(c) of the Israeli Property Tax Law establishes the "Family Unit Rule". Under this rule, spouses and their children are considered as a single purchaser for the purpose of reduced tax rates. However, the legislature has recognized exceptions to the Family Unit Rule, including spouses who live separately permanently and children under the age of 18, except for a married child or an orphan. Over the years, the courts have softened the Family Unit Rule and added two additional exceptions:

• The first exception - the historical burden: By virtue of it, the actions that one of the spouses performed prior to marriage are not recognized for the purpose of denying a right or exemption that exists for the other spouse. This exception is intended to protect the rights of spouses who marry after one of them has already acquired a right or exemption under the law. It ensures that these spouses are not penalized for the actions of their partner that took place before they were married.
• The second exception - the separation of property exception: By virtue of it, spouses are not considered as a single purchaser if they have a property relations agreement that establishes a separation of property between them. This exception is intended to protect the rights of spouses who have chosen to establish a separation of property between them. It ensures that these spouses are not penalized for their decision to separate their property, even for the purpose of determining the applicable tax rates.

It should be emphasized that living in the shared apartment, and even the improvement of the property by the spouse who is not the owner, are not necessarily sufficient to deny the application of the separation of property exception. It depends on the totality of the agreements and circumstances between the parties.