A magnetic latch having a latch arm with a proximal end and a distal end, the proximal pivotally mounted to a butt end of a first handle half, wherein the proximal end of the latch end includes a first magnetic element that is magnetically coupled to the first handle half to preferentially extend the latch arm axially with respect to a long axis of the first handle half, and the distal end including a coupling element. The magnetic latch further having a retention element at the butt and of a second handle half that couples to the coupling element to securely latch the first handle half and the second handle half together. A butterfly knife having a magnetic latch to securely latch the first handle half and the second handle half together, either in in the closed or open position.