A more thorough explanation:

Compensatory payment is a type of payment made by one ex-spouse to the other after a divorce. It is a postmarital spousal payment that is treated as an entitlement rather than a discretionary award. The purpose of compensatory payment is to compensate somewhat for disparate income levels after a failed marriage.

The amount of compensatory payment is set by statute and is based on a formula that takes into account the length of the marriage, differences in postdivorce income, role as primary caregiver, and other factors. It is usually paid by the richer ex-spouse to the poorer one.

For example, if a couple gets divorced and one spouse earns significantly more than the other, the court may order the higher-earning spouse to pay compensatory payment to the lower-earning spouse. This is to help the lower-earning spouse maintain a similar standard of living after the divorce.

Another example is if one spouse gave up their career to take care of the children during the marriage, the court may order the other spouse to pay compensatory payment to help support the spouse who sacrificed their career.

In summary, compensatory payment is a type of spousal payment made after a divorce to help compensate for disparate income levels. It is based on a formula and is usually paid by the richer ex-spouse to the poorer one.