97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1428

 

Introduced 2/9/2011, by Sen. Christine Radogno

 

SYNOPSIS AS INTRODUCED:
 
750 ILCS 5/503  from Ch. 40, par. 503

    Amends the Illinois Marriage and Dissolution of Marriage Act. Makes a technical change in a Section concerning the disposition of property.


LRB097 09588 AJO 49725 b

 

 

A BILL FOR

 

SB1428LRB097 09588 AJO 49725 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Marriage and Dissolution of
5Marriage Act is amended by changing Section 503 as follows:
 
6    (750 ILCS 5/503)  (from Ch. 40, par. 503)
7    Sec. 503. Disposition of property.
8    (a) For purposes of this Act, "marital property" means all
9property acquired by either spouse subsequent to the the
10marriage, except the following, which is known as "non-marital
11property":
12        (1) property acquired by gift, legacy or descent;
13        (2) property acquired in exchange for property
14    acquired before the marriage or in exchange for property
15    acquired by gift, legacy or descent;
16        (3) property acquired by a spouse after a judgment of
17    legal separation;
18        (4) property excluded by valid agreement of the
19    parties;
20        (5) any judgment or property obtained by judgment
21    awarded to a spouse from the other spouse;
22        (6) property acquired before the marriage;
23        (7) the increase in value of property acquired by a

 

 

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1    method listed in paragraphs (1) through (6) of this
2    subsection, irrespective of whether the increase results
3    from a contribution of marital property, non-marital
4    property, the personal effort of a spouse, or otherwise,
5    subject to the right of reimbursement provided in
6    subsection (c) of this Section; and
7        (8) income from property acquired by a method listed in
8    paragraphs (1) through (7) of this subsection if the income
9    is not attributable to the personal effort of a spouse.
10    (b)(1) For purposes of distribution of property pursuant to
11this Section, all property acquired by either spouse after the
12marriage and before a judgment of dissolution of marriage or
13declaration of invalidity of marriage, including non-marital
14property transferred into some form of co-ownership between the
15spouses, is presumed to be marital property, regardless of
16whether title is held individually or by the spouses in some
17form of co-ownership such as joint tenancy, tenancy in common,
18tenancy by the entirety, or community property. The presumption
19of marital property is overcome by a showing that the property
20was acquired by a method listed in subsection (a) of this
21Section.
22    (2) For purposes of distribution of property pursuant to
23this Section, all pension benefits (including pension benefits
24under the Illinois Pension Code) acquired by either spouse
25after the marriage and before a judgment of dissolution of
26marriage or declaration of invalidity of the marriage are

 

 

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1presumed to be marital property, regardless of which spouse
2participates in the pension plan. The presumption that these
3pension benefits are marital property is overcome by a showing
4that the pension benefits were acquired by a method listed in
5subsection (a) of this Section. The right to a division of
6pension benefits in just proportions under this Section is
7enforceable under Section 1-119 of the Illinois Pension Code.
8    The value of pension benefits in a retirement system
9subject to the Illinois Pension Code shall be determined in
10accordance with the valuation procedures established by the
11retirement system.
12    The recognition of pension benefits as marital property and
13the division of those benefits pursuant to a Qualified Illinois
14Domestic Relations Order shall not be deemed to be a
15diminishment, alienation, or impairment of those benefits. The
16division of pension benefits is an allocation of property in
17which each spouse has a species of common ownership.
18    (3) For purposes of distribution of property under this
19Section, all stock options granted to either spouse after the
20marriage and before a judgment of dissolution of marriage or
21declaration of invalidity of marriage, whether vested or
22non-vested or whether their value is ascertainable, are
23presumed to be marital property. This presumption of marital
24property is overcome by a showing that the stock options were
25acquired by a method listed in subsection (a) of this Section.
26The court shall allocate stock options between the parties at

 

 

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1the time of the judgment of dissolution of marriage or
2declaration of invalidity of marriage recognizing that the
3value of the stock options may not be then determinable and
4that the actual division of the options may not occur until a
5future date. In making the allocation between the parties, the
6court shall consider, in addition to the factors set forth in
7subsection (d) of this Section, the following:
8        (i) All circumstances underlying the grant of the stock
9    option including but not limited to whether the grant was
10    for past, present, or future efforts, or any combination
11    thereof.
12        (ii) The length of time from the grant of the option to
13    the time the option is exercisable.
14    (c) Commingled marital and non-marital property shall be
15treated in the following manner, unless otherwise agreed by the
16spouses:
17        (1) When marital and non-marital property are
18    commingled by contributing one estate of property into
19    another resulting in a loss of identity of the contributed
20    property, the classification of the contributed property
21    is transmuted to the estate receiving the contribution,
22    subject to the provisions of paragraph (2) of this
23    subsection; provided that if marital and non-marital
24    property are commingled into newly acquired property
25    resulting in a loss of identity of the contributing
26    estates, the commingled property shall be deemed

 

 

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1    transmuted to marital property, subject to the provisions
2    of paragraph (2) of this subsection.
3        (2) When one estate of property makes a contribution to
4    another estate of property, or when a spouse contributes
5    personal effort to non-marital property, the contributing
6    estate shall be reimbursed from the estate receiving the
7    contribution notwithstanding any transmutation; provided,
8    that no such reimbursement shall be made with respect to a
9    contribution which is not retraceable by clear and
10    convincing evidence, or was a gift, or, in the case of a
11    contribution of personal effort of a spouse to non-marital
12    property, unless the effort is significant and results in
13    substantial appreciation of the non-marital property.
14    Personal effort of a spouse shall be deemed a contribution
15    by the marital estate. The court may provide for
16    reimbursement out of the marital property to be divided or
17    by imposing a lien against the non-marital property which
18    received the contribution.
19    (d) In a proceeding for dissolution of marriage or
20declaration of invalidity of marriage, or in a proceeding for
21disposition of property following dissolution of marriage by a
22court which lacked personal jurisdiction over the absent spouse
23or lacked jurisdiction to dispose of the property, the court
24shall assign each spouse's non-marital property to that spouse.
25It also shall divide the marital property without regard to
26marital misconduct in just proportions considering all

 

 

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1relevant factors, including:
2        (1) the contribution of each party to the acquisition,
3    preservation, or increase or decrease in value of the
4    marital or non-marital property, including (i) any such
5    decrease attributable to a payment deemed to have been an
6    advance from the parties' marital estate under subsection
7    (c-1)(2) of Section 501 and (ii) the contribution of a
8    spouse as a homemaker or to the family unit;
9        (2) the dissipation by each party of the marital or
10    non-marital property;
11        (3) the value of the property assigned to each spouse;
12        (4) the duration of the marriage;
13        (5) the relevant economic circumstances of each spouse
14    when the division of property is to become effective,
15    including the desirability of awarding the family home, or
16    the right to live therein for reasonable periods, to the
17    spouse having custody of the children;
18        (6) any obligations and rights arising from a prior
19    marriage of either party;
20        (7) any antenuptial agreement of the parties;
21        (8) the age, health, station, occupation, amount and
22    sources of income, vocational skills, employability,
23    estate, liabilities, and needs of each of the parties;
24        (9) the custodial provisions for any children;
25        (10) whether the apportionment is in lieu of or in
26    addition to maintenance;

 

 

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1        (11) the reasonable opportunity of each spouse for
2    future acquisition of capital assets and income; and
3        (12) the tax consequences of the property division upon
4    the respective economic circumstances of the parties.
5    (e) Each spouse has a species of common ownership in the
6marital property which vests at the time dissolution
7proceedings are commenced and continues only during the
8pendency of the action. Any such interest in marital property
9shall not encumber that property so as to restrict its
10transfer, assignment or conveyance by the title holder unless
11such title holder is specifically enjoined from making such
12transfer, assignment or conveyance.
13    (f) In a proceeding for dissolution of marriage or
14declaration of invalidity of marriage or in a proceeding for
15disposition of property following dissolution of marriage by a
16court that lacked personal jurisdiction over the absent spouse
17or lacked jurisdiction to dispose of the property, the court,
18in determining the value of the marital and non-marital
19property for purposes of dividing the property, shall value the
20property as of the date of trial or some other date as close to
21the date of trial as is practicable.
22    (g) The court if necessary to protect and promote the best
23interests of the children may set aside a portion of the
24jointly or separately held estates of the parties in a separate
25fund or trust for the support, maintenance, education, physical
26and mental health, and general welfare of any minor, dependent,

 

 

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1or incompetent child of the parties. In making a determination
2under this subsection, the court may consider, among other
3things, the conviction of a party of any of the offenses set
4forth in Section 12-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13,
512-14, 12-14.1, 12-15, or 12-16 of the Criminal Code of 1961 if
6the victim is a child of one or both of the parties, and there
7is a need for, and cost of, care, healing and counseling for
8the child who is the victim of the crime.
9    (h) Unless specifically directed by a reviewing court, or
10upon good cause shown, the court shall not on remand consider
11any increase or decrease in the value of any "marital" or
12"non-marital" property occurring since the assessment of such
13property at the original trial or hearing, but shall use only
14that assessment made at the original trial or hearing.
15    (i) The court may make such judgments affecting the marital
16property as may be just and may enforce such judgments by
17ordering a sale of marital property, with proceeds therefrom to
18be applied as determined by the court.
19    (j) After proofs have closed in the final hearing on all
20other issues between the parties (or in conjunction with the
21final hearing, if all parties so stipulate) and before judgment
22is entered, a party's petition for contribution to fees and
23costs incurred in the proceeding shall be heard and decided, in
24accordance with the following provisions:
25        (1) A petition for contribution, if not filed before
26    the final hearing on other issues between the parties,

 

 

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1    shall be filed no later than 30 days after the closing of
2    proofs in the final hearing or within such other period as
3    the court orders.
4        (2) Any award of contribution to one party from the
5    other party shall be based on the criteria for division of
6    marital property under this Section 503 and, if maintenance
7    has been awarded, on the criteria for an award of
8    maintenance under Section 504.
9        (3) The filing of a petition for contribution shall not
10    be deemed to constitute a waiver of the attorney-client
11    privilege between the petitioning party and current or
12    former counsel; and such a waiver shall not constitute a
13    prerequisite to a hearing for contribution. If either
14    party's presentation on contribution, however, includes
15    evidence within the scope of the attorney-client
16    privilege, the disclosure or disclosures shall be narrowly
17    construed and shall not be deemed by the court to
18    constitute a general waiver of the privilege as to matters
19    beyond the scope of the presentation.
20        (4) No finding on which a contribution award is based
21    or denied shall be asserted against counsel or former
22    counsel for purposes of any hearing under subsection (c) or
23    (e) of Section 508.
24        (5) A contribution award (payable to either the
25    petitioning party or the party's counsel, or jointly, as
26    the court determines) may be in the form of either a set

 

 

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1    dollar amount or a percentage of fees and costs (or a
2    portion of fees and costs) to be subsequently agreed upon
3    by the petitioning party and counsel or, alternatively,
4    thereafter determined in a hearing pursuant to subsection
5    (c) of Section 508 or previously or thereafter determined
6    in an independent proceeding under subsection (e) of
7    Section 508.
8        (6) The changes to this Section 503 made by this
9    amendatory Act of 1996 apply to cases pending on or after
10    June 1, 1997, except as otherwise provided in Section 508.
11(Source: P.A. 95-374, eff. 1-1-08; 96-583, eff. 1-1-10.)