Spousal support and compensatory payments in France: how they differ
Between spouses, “pension alimentaire” means something other than child support, with its own rules.
Checked by Radif Partners · Editorial policy
Between spouses in France, two mechanisms follow one another. During the marriage, including a de facto separation, a legal separation or divorce proceedings, one spouse may owe the other support under the duty of support (devoir de secours), for their own needs. After the divorce that duty ends; it may be replaced by a compensatory payment (prestation compensatoire), which makes up for the drop in living standards the divorce causes for one spouse. The first is a monthly payment proportionate to resources and needs; the second usually takes the form of a lump sum, sometimes an annuity. Both have their own tax rules: spousal support is deductible under conditions, and a lump-sum compensatory payment made within twelve months of the divorce gives a 25 % tax reduction, capped at €7,625. Couples from common-law countries will find the French categories quite different. The calculator works out that reduction.
Lump-sum compensatory payment: the tax reduction
Tax reduction
€7,625
| Capital taken into account | €30,500 |
| Rate | 25.0 % |
| Net cost of the capital | €32,375 |
Spousal support and compensatory payment side by side
| Support (duty of support) | Compensatory payment | |
|---|---|---|
| When | during marriage, separation, divorce proceedings | after the divorce |
| For whom | the spouse in need | the ex-spouse whose living standard falls |
| How it is worked out | one spouse’s resources, the other’s needs | gap in living standards, length of marriage, age, health, career |
| Form | monthly payment, or support in kind | usually a lump sum, or an annuity, or an asset |
| On the payer’s death | stops | passes to the heirs |
| Cohabitants, PACS partners | no (not spouses) | no |
The tax reduction on a lump-sum payment
A compensatory payment made as a lump sum, in one or several payments within the twelve months after the divorce judgment becomes final, gives a tax reduction of 25 % of the sums paid, counted up to €30,500. The reduction therefore cannot exceed €7,625. Service-public.fr gives the example of a €40,000 lump sum: only €30,500 is counted, and the reduction reaches its maximum.
| Lump sum paid | Amount counted | Tax reduction |
|---|---|---|
| €10,000 | €10,000 | €2,500 |
| €20,000 | €20,000 | €5,000 |
| €30,500 | €30,500 | €7,625 |
| €40,000 | €30,500 | €7,625 |
| €80,000 | €30,500 | €7,625 |
And the children?
Child support is independent of both mechanisms: it is worked out with the Ministry of Justice table, on the income of the parent the child does not live with, and it continues after the divorce while the child is not independent. In divorce proceedings the judge can set both at once: support under the duty of support for the spouse, and a contribution for each child. Only the latter can go through ARIPA intermediation. Child support is calculated with the child support calculator, and the compensatory payment on its own page.
Declaring what is received
A spouse receiving support declares it with their other income and gets the 10% allowance on pensions, within the limits described on is child support taxable. For a compensatory payment, the tax treatment for the recipient depends on its form, lump sum or annuity, and on the payment period: service-public.fr’s sheets on support paid and received between spouses cover each case.
Choosing between a lump sum and an annuity
The form of a compensatory payment changes more than the cash flow. A lump sum paid within twelve months ends the financial link between ex-spouses quickly and gives the payer the 25% tax reduction described above. An annuity spreads the cost but keeps the link alive, can be revised if resources or needs change significantly, and, like a lump sum, passes to the heirs on the payer’s death. The judge, or the spouses in a divorce by mutual consent, choose the form in the light of each spouse’s situation.
International divorces
When spouses of different nationalities divorce in France, the French categories apply to the French proceedings: duty of support during the case, then possibly a compensatory payment. If a spouse later lives abroad and stops paying, the Foreign Affairs recovery office can pursue a compensatory payment, according to service-public.fr, but not through ARIPA, which is reserved for child support. Keeping the divorce judgment and the payment schedule to hand makes any later recovery much simpler.