equalization payment
"Equalization payments" are financial transfers designed to balance disparities, often used in government funding and divorce settlements.
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Definition
C1Government Fiscal Systems
(technical)A financial transfer from a federal government to regional governments to ensure they can provide similar levels of public services.
Example
- The federal government made an equalization payment to support the poorer provinces.
- Equalization payments help maintain a balanced standard of living across the country.
C1Divorce Settlements
(legal)A payment made by one spouse to the other to ensure an equal division of marital assets.
Example
- She received an equalization payment to balance the division of their property.
- An equalization payment was necessary to achieve a fair split of their assets.