Am I entitled to request compensatory allowance?
If there is a disparity in income and/or assets between you and your spouse, such that the divorce is likely to leave you impoverished, then you may be entitled to a compensatory allowance.
Compensatory allowance is a sum of money or benefit that one spouse may be required to pay to the other at the time of divorce. It compensates for the financial imbalance created by the breakup and restores a certain balance in the respective living conditions.
It may be requested and granted when there is a significant disparity in the spouses’ standards of living, particularly if one spouse has become impoverished or has made a professional sacrifice (for example, by giving up their career to raise children or to follow the other spouse abroad).
However, the judge may refuse it in certain situations, particularly if the divorce is granted on the grounds of the exclusive fault of the requesting spouse or if fairness so warrants.
How is the compensatory allowance calculated? The amount is determined based on several criteria:
– the length of the marriage,
– age and health of the spouses,
– standard of living (income),
– career choices made for the family/professional sacrifice,
– current and foreseeable assets at the end of the liquidation,
– each spouse’s pension rights.
In the case of divorce by mutual consent, it is up to you to choose the amount of the compensatory allowance, with the advice of your lawyers. In other cases of contested divorce, it is set by the judge.
Terms of payment of the compensatory allowance. In principle, it takes the form of a lump sum. It is normally paid in a single installment, but the judge may decide to spread the payment over a maximum period of 8 years.
In very exceptional cases, it may take the form of a life annuity if the age or health of the beneficiary justifies it.
Please note that this benefit is distinct from alimony: it is not intended to cover daily needs, but to compensate for a lasting imbalance in living standards resulting from the divorce.
Gaëtan ESCUDEY is available to help you determine your rights with regard to compensatory payments.