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Conversion of the Compensatory Allowance

In principle, a former spouse can, at any time, obtain from the judge that the compensatory allowance that he pays in the form of an annuity be replaced by the payment of a lump sum .

This is what the Court of Cassation has just recalled in a case where the Court of Appeal had refused the request for conversion of the pension on the grounds that the respective situations of the spouses had not changed since the divorce and that the security represented by the annuity constituted an advantage compared to the vagaries of the investment of a capital. For the Court of Cassation, the request for conversion of the annuity into capital must be granted if the debtor proves that he is able to pay the capital and that the age or the state of health of the beneficiary does not oppose it. not. It should be remembered that the compensatory allowance aims to compensate for the disparity between the living standards of the spouses after the divorce. It is paid in the form of a lump sum payable all at once or in installments,

Payment of Capital and Financial Intermediary

Since October 1, 2020 and by two decrees published in the Official Journal (2), any divorced parent has the possibility of notifying the CAF or the MSA of the non-payment of their alimony, so that it can act as an intermediary. financial. This principle has been generalized, since January 1, 2021 (3), to all parents, without the duration of their divorce constituting an obstacle.

A lump sum payment refers to the conversion of a compensatory allowance, usually paid as an annuity, into a single payment. The Court of Cassation clarified that a former spouse can request the conversion of an annuity into a payment of a capital. To grant this request, the debtor must demonstrate his ability to make the payment, while the age or health of the beneficiary should not impede the conversion.

Financial intermediary: Since October 1, 2020, divorced parents have the possibility of notifying the CAF (Caisse d’Allocations Familiales) or the MSA (Mutualité Sociale Agricole) in the event of non-payment of child support. These organizations can act as financial intermediaries, helping to enforce child support payments. This measure has been extended to all parents, regardless of the duration of their divorce, from 1 January 2021. The involvement of a financial intermediary aims to guarantee the financial support of the children and to facilitate the fulfillment of the obligations of alimony . _

DOCS: Official site of the French administration: The two decrees published in the Official Journal: /JORFTEXT000042383151?r=gtqTML64eH & Decree concerning the generalization of the principle: id /JORFTEXT000042840858?r=h4wqpJhjg1 Law Firm DAMY 2021