In this post we comment on a recent judgment that reinforces the possibility of granting a lifetime compensatory pension despite the fact that, in most cases, this pension is agreed on a temporary basis.
This is a ruling handed down by the Supreme Court, which grants a compensatory pension of 1,100 euros per month with no time limit for a divorced woman of 55 years of age due to her limited options to access the world of work. Remember that, although the general trend when granting this type of benefit is temporary, there may also be cases of lump-sum payments or payments for life. Consult us about your case.
Compensation benefit: what is it and when can it be for life?
The compensatory pension consists of the amount that one of the spouses receives from the other in case the separation or divorce has produced a situation of economic imbalance in relation to the position of the other.
That is to say, that economically his or her situation has worsened with respect to the one he or she had during the marriage.
It is an extension of the matrimonial solidarity after the breakup, and its goal is to try to reach a balance between both spouses, improving the situation of the most disadvantaged.
It is, however, a pension that, although it can be for life in exceptional cases, it is intended to be temporary . Its concession is related to the role that each spouse has played in the family economy.
A classic example is that of the spouse who stays at home to take care of the family and does not generate economic income, thus allowing the other party to develop his/her work to the detriment of his/her own.
The compensatory pension balances the balance in these cases.
The requirements for a compensatory allowance to be granted are as follows:
- That an economic imbalance arises from the marital breakdown.
- That this imbalance implies a significant worsening of the economic situation of the affected spouse.
- That its application is ratified through the regulatory agreement or a judicial resolution.
The existence of this economic imbalance must be notified in the divorce proceeding itself.
In addition, as to the factors that determine the right to receive a compensatory benefit, the courts will assess the following:
- The agreements reached by the spouses.
- The matrimonial regime to which they have been subject.
- Dedication to the family, both in the past and for the future as a separated or divorced couple.
- Collaboration in the activities or enterprises of the other spouse.
- The duration of the dissolving marriage.
- Age, health status, qualifications or training for employment.
- Economic wealth of the spouses and needs.
The Supreme Court’s ruling: limited work experience and advanced age
In this case, the wife filed a contentious divorce suit against her husband.
The Court of First Instance No. 3 of San Sebastian agreed to a compensatory pension of 1,100 euros per month, with a duration of 12 years, in favor of the plaintiff, and the Provincial Court of Gipuzkoa reduced its temporary duration to 8 years.
Initially, the wife requested a compensatory pension in the amount of 1,500 euros per month for life, while the husband accepted the establishment of a compensatory pension but requested to limit it to 1,000 euros per month for two years.
Faced with the decision of the Provincial Court, the woman’s defense went all the way to the Supreme Court, which now agrees with her, in a judgment dated November 28, 2022, based on the idea that “the work experience of the woman, who stopped working immediately after the marriage, is scarce and distant in time”, as stated in the text of the judgment.
To this is added her lack of education and the obsoleteness of her studies after more than 20 years of marriage in which her exclusive dedication was the care of the family nucleus.
Specifically, the plaintiff has administrative studies and worked in a store dedicated to the sale of household appliances, leaving this job a few months after her marriage.
Since then she has not returned to work.
On the other hand, the ex-husband is the general manager of a company, after having worked as a development engineer and later as a systems engineer.
According to the ruling, the man would have an income of approximately 7,800 euros per month.
The Supreme Court takes into account that it is precisely this dedication to family responsibilities that has enabled her ex-husband’s professional success. Likewise, the mother will continue to be the figure in charge of the couple’s children.
It does not help that labor market insertion after the age of 50 is complicated, being the group with the highest number of unemployed.
As for the economic regime of the marriage, in this case it was a community property regime, so that, at the time of the divorce, the settlement amounted to more than 200,000 euros in favor of each of them.
This was the argument of the court to grant the compensatory benefit on a temporary basis, as well as the existence of studies and the fact that the woman’s ability to work was not affected for health or other reasons.
Now, the Supreme Court assures that the economic imbalance “is notorious” in this case and emphasizes that “the plaintiff does not have a special professional qualification”.
In fact, “their knowledge, acquired more than twenty years ago, consisting of professional training in the administrative branch, is obsolete, given the curricular changes produced in this degree, derived from the demands of the market and the digital society in which we live”.
“The context of the economy, in a situation of uncertainty and crisis, does not help either.”the sentence states, so that “the prognosis for professional reintegration to overcome the imbalance is bleak”. For all of these reasons, imposing a time limit on the compensatory pension is not considered appropriate in this caseWithout prejudice to the fact that, in the event that the wife enters the labor market, the ex-husband may request a modification of the amount or even the termination of the pension.
If you need help in any matter related to Family Law and benefits related to divorce or separation, marital contracts, agreements in anticipation of a breakup… please contact our team of lawyers..
