The party was founded by Sharon after he formally left Likud on 21 November 2005 to establish a new party that would grant him the freedom to carry out the disengagement plan--removing Israeli settlements from Palestinian territory and fixing Israel's borders with a prospective Palestinian state.

The name Kadima (literally: "Forward") emerged within the first days of the split and was favored by Sharon. However, the party was initially named "National Responsibility"