Impact of Receiving Settlement Funds on Personal Maintenance Payments After Divorce

Scenario:

You are divorced, and the court has ruled that you are entitled to €500 per month in maintenance payments for 10 years (the duration of the marriage).

At that time, the settlement process has not yet been completed.

Does the settlement impact the maintenance amount you receive from your ex-partner?

If the settlement of marital assets leads to a change in financial circumstances, and this change justifies an adjustment of the maintenance amount set by a court ruling or agreement, the court can modify the amount of personal maintenance payments.

This is provided for in Article 301 § 7 of the old Civil Code.

Therefore, the results of the settlement can be grounds for modification if they lead to a change in financial circumstances and if the maintenance amount was determined by a court ruling or agreement before the settlement accounts were drawn up.

Does the court automatically cancel maintenance payments if you receive funds from the settlement?

No.

The court may also decide that, despite the improvement in the ex-partner’s financial situation, there is still a need, and choose to reduce or even maintain the maintenance payment.

It is not the intention that the funds from the settlement, such as from the sale of the home, should be fully used by the maintenance-receiving partner, leading to renewed need.

Similarly, if one partner buys out the other’s share of the family home and the other partner receives a sum of money, this does not automatically lead to an adjustment or cancellation of maintenance payments.

Receiving a sum of money from the settlement does not immediately eliminate the state of need.

What is meant by the state of need?

The court must always determine whether, after receiving funds from the settlement, you still find yourself in a state of need to establish whether you are still entitled to maintenance.

The state of need is assessed based on the standard of living enjoyed by the maintenance-receiving partner, taking into account upbringing and social status.

The court considers the income and capabilities of both spouses, as well as the significant decline in the economic situation of the receiving party. To assess this decline, the court looks at the duration of the marriage, the age of the parties, their behavior during the marriage regarding their needs, and their role in raising children during and after cohabitation.

For example, if you went on multiple vacations each year during the marriage, your standard of living is considered high, and this will be factored in when determining the state of need.

In addition to actual income, potential income from the maintenance-receiving partner’s assets (e.g., rental income from real estate, income from capital) can also be considered in assessing financial capacity.

Based on these elements and all financial documents, the court will decide whether you are still in a state of need and thus still entitled to maintenance.

Our Family Law & Family Property Law Attorney, Steffie Carels, previously wrote a blog about the myth “In a divorce, the man must maintain his ex-wife.”

Read more about the myth “In a divorce, the man must maintain his ex-wife” here.

Provisional Maintenance Payments

It may be wise to request the court to order provisional maintenance payments if the divorce has been finalized but the settlement has not yet been completed.

In this case, it may be appropriate for the court to order a provisional amount, and once the settlement is finalized, a definitive maintenance amount can be determined.

The court cannot consider funds you may receive from the settlement; only your current income and financial situation are taken into account.

How can I avoid or reduce maintenance payments to my ex-partner due to the settlement?

If you are the one required to pay maintenance after the divorce, and the settlement has improved your ex-partner’s financial situation, you can bring the case back to the competent Family Court based on the continuing jurisdiction (Article 1253ter/7 of the Judicial Code).

In the continuing jurisdiction pleadings, you can request the application of Article 301 § 7 of the old Civil Code and ask for the cancellation or reduction of the maintenance payments you are required to make.

The court will then assess all financial documents to determine whether your ex-partner, despite receiving funds from the settlement, is still in a state of need.

Based on this, the maintenance payments may be canceled or reduced.

Do you have questions about maintenance after divorce and the impact of the settlement on it?

Our Family Law and Family Property Law experts are happy to assist and advise you.

Don’t hesitate to contact us.