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If a non-Israeli mother undertakes to raise the children in Israel, in her divorce agreement, does this mean that she can never relocate overseas with them?

Not necessarily ! An agreement between parents does not bind the children,who are not parties to it. It may be possible for an independent relocation plea to be filed by the children themselves (via their mother, their natural guardian). Furthermore, decisions relating to minors are never final, in Israeli law, as circumstances and needs change. A court faced with a relocation plea has to decide if the move is in the children's welfare/interests i.e. is the least detrimental alternative.