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If an Israeli court has jurisdiction to deal with a particular issue in a family law dispute with an international dimension, does that mean that only Israeli law will apply?

No! A court in Israel may have jurisdiction to deal with a case, but may have to apply the law of another country to rule on the dispute. For example, in a disputed dissolution of marriage case,where the parties married in a civil ceremony outside of Israel, foreign law will apply. The party wishing to divorce will have to prove to the Israeli family law court that he/she has grounds for divorce according to the foreign law of the country where the couple married. Where both parties consent to end the marriage, the Israeli family law court can grant a civil divorce judgment based on Israeli law - mutual consent, which is sufficient ground for dissolution of marriage under Israeli law.