Ma nièce croyait que mon compagnon était riche.

Questions & Answers about Ma nièce croyait que mon compagnon était riche.

Why do we use était here instead of a different past tense?
This is the sequence of tenses in action! The niece's original thought was in the present tense: my partner est rich. However, because we are reporting her thought in the past using croyait, that original present tense must backshift into the imparfait, becoming était.
Why is the main verb croyait in the imparfait and not the passé composé (a cru)?
The imparfait is used for ongoing states of mind or continuous beliefs in the past. She held this belief over a period of time. If you used the passé composé (a cru), it would sound like a sudden realization or a one-time event, meaning: at that exact moment, she thought he was rich.
Does croire que ever require the subjunctive? Why is était in the indicative mood?
The verb croire only triggers the subjunctive when it introduces doubt, which happens in negative sentences (like ne croyait pas que) or questions. Since this is a simple affirmative statement of her belief, we use the normal indicative mood for était.
Does compagnon mean a general companion, or is it specifically a romantic partner?
While it can mean a general companion, in modern everyday French, saying mon compagnon (or ma compagne for a woman) is the standard way to refer to a romantic partner or significant other. For a business partner, you would instead use partenaire or associé.

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