ICONOS FINALES-TRAZADOS

Compensatory pension

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Amount and duration after change in the economic capacity of the parties

Compensatory pension

The Supreme Court (SC) has resolved a case in which a former couple was discussing theamount and duration of the compensatory pension after their divorce. At the time they signed the regulatory agreement, the ex-husband agreed to pay his ex-wife40% of his future retirement pension for life, as compensation for the economic imbalance that the divorce caused her.

Years later, both retired and, upon realizing that theeconomic situation had changed (now both pensions were similar), the ex-husband went to court requesting theextinction of said pension. He argued that the ex-wife already hadsufficient resources and that continuing to pay the compensatory pension could leave him with very low income. The first instance judge understood that, although thecompensatory pension should be maintained, it should only be paid for two more years, to prevent the ex-husband from having an insufficient minimum livelihood. The ex-wife disagreed and appealed. The Provincial Court thought that, although the situation had changed

, there were no reasons to extinguish the pension., there were no reasons to extinguish the pension, but yes to reduce its amount to only75 euros per month, and also to keep it indefinitely, which in part was worse for the ex-wife in terms of monthly money, but better because it ensured lifelong payment.

When the case reached the Supreme Court, it analyzed if the Court of Appeals could make that decision, since the ex-wife had only appealed to obtain a pension without a time limit and not to discuss the amount, and the ex-husband had not even appealed. The Supreme Court recalls that a courtcannot worsen the situation of the only one who appeals (principle of "no worsening"), unless the other party has also appealed. Thus, partly confirming the ex-wife's claim, it resolves that the pension will be the oneset by the first judgment(40% for two years) and, only after that time, it will be reduced to 75 euros per month indefinitely, as established by the Court of Appeals.

If you find yourself in a situation similar to the one described, our professionals can provide you with the necessary assistance and take the actions that may be relevant.

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