Compensatory pension

The Supreme Court (SC) has ruled on a very common case after a divorce in which one of the former spouses requests that the compensatory pension be terminated (or at least reduced), arguing that their income has decreased because they have sold their business and, furthermore, their personal situation has changed because they have remarried and are about to retire. In this specific case, the obligor had transferred the tobacconist's shop he managed, and that change was voluntary, he decided to sell it in exchange for money and stop having those incomes, for personal reasons.The ex-wife who was receiving the pension opposed it because her economic situation had not improved, and furthermore, the reduction in her ex-husband's income was not due to reasons beyond his control, but because he had decided to sell the business. A first court partially accepted the husband's claim and reduced the pension, considering that his income had indeed decreased, but did not completely eliminate it because the ex-wife's situation had not changed much. The Provincial Court, however, went further and said that since they both have resourcestransferred the tobacconist's shop she was managing, and thatthe change was voluntary, decided to sell it in exchange for money and stop receiving those incomes, for personal reasons.

The ex-wife who was receiving the alimonyopposed because her economic situation had not improved, and also because thereduction of income from her ex-husband was not due to reasons beyond her control, but because he had decided to sell the business. A first court partially accepted the husband's claim andreduced the alimony, considering that her income had indeed decreased, but did not eliminate it completely because thethe ex-wife's situation had not changed much.

The Provincial Court, however, went further and stated that sinceboth have resources enough, the pension no longer made sense and extinguished it. The ex-wife then turned to the TS, which partially ruled in her favor. For the TSit is not valid to decrease the incomevoluntarily(by selling a business, for example) tostop paying the alimony, which had also been agreed upon in the divorce agreement. However, it does acceptreducing the amount and sets atemporary limit. The pension should only be maintained until the ex-husband reaches 65 years old.

The TS recalls that these pensions can only be modified or extinguished if asignificant change occurs, but not if the income decreases because the payer decides so voluntarily,thus ensuring the security of the agreements reached in the divorce.