Compensatory allowance :
The compensatory allowance: for what purpose ?
The aim of the compensatory allowance, whatever the type of divorce, is to compensate for the disparity created by the breakdown of the marriage.
Several criteria are given by the Civil Code to assess the disparity created by the divorce, namely the duration of the marriage, the income, the estimated patrimony, the amount of foreseeable pensions, the age of the spouses, their health… If there is no disparity, there will be no need for compensatory benefit.
In the event of a divorce by mutual consent, the spouses will jointly determine the amount of this compensatory benefit.
If it is a contentious divorce, in case of disagreement, the judge will fix the amount of the compensatory allowance.
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We remind you :
Payment and revision of the compensatory allowance
The compensatory allowance is due only from the date on which the decision declaring the divorce has become irrevocable.
The judgment pronouncing the divorce puts an end to the payment of the duty of assistance paid provisionally during the divorce proceedings by one of the spouses to the other, following the decision of the Family Affairs Judge at the time of the order of non-conciliation.
The compensatory allowance may be paid in capital, by abandonment of property in kind, or in the form of monthly payments for a maximum period of eight years.
In exceptional cases, the compensatory benefit may be paid in the form of a life annuity (for example a very old, very sick wife, etc.).
If the compensatory benefit is paid within one year, it will not be imposed by the recipient. Beyond that, the compensatory benefit paid will be assimilated for tax purposes to the alimony scheme and the compensatory benefit will be taxable for the creditor and deductible for the debtor.
Unlike alimony, the compensatory benefit will not be revisable, except for the compensatory benefit paid in the form of an annuity in exceptional cases and this, always downward.
If you would like more information on child support and compensatory allowance procedures, consult your family law lawyer in Paris, Nanterre, Créteil or Versailles, Bobigny, Meaux, Melun, Fontainebleau, Evry, Sens, Auxerre , Le Mesnil-Amelot and throughout France.
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