Full Text of SB0454 95th General Assembly
SB0454enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning civil law.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Marriage and Dissolution of | 5 |
| Marriage Act is amended by changing Section 503 as follows:
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| (750 ILCS 5/503) (from Ch. 40, par. 503)
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| Sec. 503. Disposition of property.
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| (a) For purposes of this Act, "marital property" means all | 9 |
| property acquired
by either spouse subsequent to the marriage, | 10 |
| except the following, which is
known as "non-marital property":
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| (1) property acquired by gift, legacy or descent;
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| (2) property acquired in exchange for property | 13 |
| acquired before the
marriage or in exchange for property | 14 |
| acquired by gift, legacy or descent;
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| (3) property acquired by a spouse after a judgment of | 16 |
| legal separation;
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| (4) property excluded by valid agreement of the | 18 |
| parties;
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| (5) any judgment or property obtained by judgment | 20 |
| awarded to a spouse
from the other spouse;
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| (6) property acquired before the marriage;
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| (7) the increase in value of property acquired by a | 23 |
| method listed in
paragraphs (1) through (6) of this |
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| subsection, irrespective of whether the
increase results | 2 |
| from a contribution of marital property, non-marital | 3 |
| property,
the personal effort of a spouse, or otherwise, | 4 |
| subject to the right of
reimbursement provided in | 5 |
| subsection (c) of this Section; and
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| (8) income from property acquired by a method listed in | 7 |
| paragraphs (1)
through (7) of this subsection if the income | 8 |
| is not attributable to the
personal effort of a spouse.
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| (b)(1) For purposes of distribution of property pursuant to | 10 |
| this
Section, all property acquired by either spouse after the | 11 |
| marriage and before a
judgment of dissolution of marriage or | 12 |
| declaration of invalidity of marriage,
including non-marital | 13 |
| property transferred into some form of co-ownership
between the | 14 |
| spouses, is presumed to be marital property, regardless of | 15 |
| whether
title is held individually or by the spouses in some | 16 |
| form of co-ownership such
as joint tenancy, tenancy in common, | 17 |
| tenancy by the entirety, or community
property. The presumption | 18 |
| of marital property is overcome by a showing that
the property | 19 |
| was acquired by a method listed in subsection (a) of this | 20 |
| Section.
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| (2) For purposes of distribution of property pursuant to | 22 |
| this Section,
all pension benefits (including pension benefits | 23 |
| under the Illinois Pension
Code) acquired by either spouse | 24 |
| after the marriage and before a judgment of
dissolution of | 25 |
| marriage or declaration of invalidity of the marriage are
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| presumed to be marital property, regardless of which spouse |
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| participates in the
pension plan. The presumption that these | 2 |
| pension benefits are marital property
is overcome by a showing | 3 |
| that the pension benefits were acquired by a method
listed in | 4 |
| subsection (a) of this Section. The right to a division of | 5 |
| pension
benefits in just proportions under this Section is | 6 |
| enforceable under Section
1-119 of the Illinois Pension Code.
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| The value of pension benefits in a retirement system | 8 |
| subject to the Illinois
Pension Code shall be determined in | 9 |
| accordance with the valuation procedures
established by the | 10 |
| retirement system.
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| The recognition of pension benefits as marital property and | 12 |
| the division of
those benefits pursuant to a Qualified Illinois | 13 |
| Domestic Relations Order shall
not be deemed to be a | 14 |
| diminishment, alienation, or impairment of those
benefits. The | 15 |
| division of pension benefits is an allocation of property in
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| which each spouse has a species of common ownership.
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| (3) For purposes of distribution of property under this | 18 |
| Section, all stock
options granted to either spouse after the | 19 |
| marriage and before a judgment of
dissolution of marriage or | 20 |
| declaration of invalidity of marriage, whether
vested or | 21 |
| non-vested or whether their value is ascertainable, are | 22 |
| presumed to
be marital property. This presumption of marital | 23 |
| property is overcome by a
showing that the stock options were | 24 |
| acquired by a method listed in subsection
(a) of this Section. | 25 |
| The court shall allocate stock options between the
parties at | 26 |
| the time of the judgment of dissolution of marriage or |
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| declaration
of invalidity of marriage recognizing that the | 2 |
| value of the stock options may
not be then determinable and | 3 |
| that the actual division of the options may not
occur until a | 4 |
| future date. In making the allocation between the parties, the
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| court shall consider, in addition to the factors set forth in | 6 |
| subsection (d) of
this Section, the following:
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| (i) All circumstances underlying the grant of the stock | 8 |
| option including
but not limited to whether the grant was | 9 |
| for past, present, or future efforts,
or any combination | 10 |
| thereof.
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| (ii) The length of time from the grant of the option to | 12 |
| the time the
option is exercisable.
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| (c) Commingled marital and non-marital property shall be | 14 |
| treated in
the following manner, unless otherwise agreed by the | 15 |
| spouses:
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| (1) When marital and non-marital property are | 17 |
| commingled by contributing
one estate of property into | 18 |
| another resulting in a loss of identity of the
contributed | 19 |
| property, the classification of the contributed property | 20 |
| is
transmuted to the estate receiving the contribution, | 21 |
| subject to the provisions
of paragraph (2) of this | 22 |
| subsection; provided that if marital and non-marital
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| property are commingled into newly acquired property | 24 |
| resulting in a loss
of identity of the contributing | 25 |
| estates, the commingled property shall be
deemed | 26 |
| transmuted to marital property, subject to the provisions |
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| of paragraph
(2) of this subsection.
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| (2) When one estate of property makes a contribution to | 3 |
| another estate
of property, or when a spouse contributes | 4 |
| personal effort to non-marital
property, the contributing | 5 |
| estate shall be reimbursed from the estate receiving
the | 6 |
| contribution notwithstanding any transmutation; provided, | 7 |
| that no such
reimbursement shall be made with respect to a | 8 |
| contribution which is not
retraceable by clear and | 9 |
| convincing evidence, or was a gift, or, in the
case of a | 10 |
| contribution of personal effort of a spouse to non-marital | 11 |
| property,
unless the effort is significant and results in | 12 |
| substantial appreciation
of the non-marital property. | 13 |
| Personal effort of a spouse shall be deemed
a contribution | 14 |
| by the marital estate. The court may provide for | 15 |
| reimbursement
out of the marital property to be divided or | 16 |
| by imposing a lien against the
non-marital property which | 17 |
| received the contribution.
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| (d) In a proceeding for dissolution of marriage or | 19 |
| declaration of invalidity
of marriage, or in a proceeding for | 20 |
| disposition of property following
dissolution of marriage by a | 21 |
| court which lacked personal jurisdiction over the
absent spouse | 22 |
| or lacked jurisdiction to dispose of the property, the court
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| shall assign each spouse's non-marital property to that spouse. | 24 |
| It also shall
divide the marital property without regard to | 25 |
| marital misconduct in just
proportions considering all | 26 |
| relevant factors, including:
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| (1) the contribution of each party to the acquisition, | 2 |
| preservation, or
increase or decrease in value of the | 3 |
| marital or non-marital property, including
the | 4 |
| contribution of a spouse as a homemaker or to the family | 5 |
| unit;
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| (2) the dissipation by each party of the marital or | 7 |
| non-marital property;
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| (3) the value of the property assigned to each spouse;
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| (4) the duration of the marriage;
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| (5) the relevant economic circumstances of each spouse | 11 |
| when the division
of property is to become effective, | 12 |
| including the desirability of awarding
the family home, or | 13 |
| the right to live therein for reasonable periods, to the
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| spouse having custody of the children;
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| (6) any obligations and rights arising from a prior | 16 |
| marriage
of either party;
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| (7) any antenuptial agreement of the parties;
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| (8) the age, health, station, occupation, amount and | 19 |
| sources of income,
vocational skills, employability, | 20 |
| estate, liabilities, and needs of each of the
parties;
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| (9) the custodial provisions for any children;
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| (10) whether the apportionment is in lieu of or in | 23 |
| addition to
maintenance;
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| (11) the reasonable opportunity of each spouse for | 25 |
| future acquisition
of capital assets and income; and
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| (12) the tax consequences of the property division upon |
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| the
respective economic circumstances of the parties.
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| (e) Each spouse has a species of common ownership in the | 3 |
| marital property
which vests at the time dissolution | 4 |
| proceedings are commenced and continues
only during the | 5 |
| pendency of the action. Any such interest in marital property
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| shall not encumber that property so as to restrict its | 7 |
| transfer, assignment
or conveyance by the title holder unless | 8 |
| such title holder is specifically
enjoined from making such | 9 |
| transfer, assignment or conveyance.
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| (f) In a proceeding for dissolution of marriage or | 11 |
| declaration of
invalidity of marriage or in a proceeding for | 12 |
| disposition of property
following dissolution of marriage by a | 13 |
| court that lacked personal
jurisdiction over the absent spouse | 14 |
| or lacked jurisdiction to dispose of
the property, the court, | 15 |
| in determining the value of the marital and
non-marital | 16 |
| property for purposes of dividing the property, shall value the
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| property as of the date of trial or some other date as close to | 18 |
| the date
of trial as is practicable.
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| (g) The court if necessary to protect and promote the best | 20 |
| interests of the
children may set aside a portion of the | 21 |
| jointly or separately held
estates of the parties in a separate | 22 |
| fund or trust for the support,
maintenance, education, physical | 23 |
| and mental health, and general welfare of any minor, dependent,
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| or incompetent child of the parties. In making a determination | 25 |
| under this
subsection, the court may consider, among other | 26 |
| things, the conviction of a
party of any of the offenses set |
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| forth in Section 12-3.3, 12-4, 12-4.1,
12-4.2, 12-4.3,
12-13, | 2 |
| 12-14, 12-14.1, 12-15, or 12-16 of the Criminal Code of 1961 if | 3 |
| the
victim is a
child of one or both of the parties, and there | 4 |
| is a need for, and cost of,
care, healing and counseling for | 5 |
| the child who is the victim of the crime.
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| (h) Unless specifically directed by a reviewing court, or | 7 |
| upon good
cause shown, the court shall not on remand consider | 8 |
| any increase or
decrease in the value of any "marital" or | 9 |
| "non-marital" property occurring
since the assessment of such | 10 |
| property at the original trial or hearing, but
shall use only | 11 |
| that assessment made at the original trial or hearing.
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| (i) The court may make such judgments affecting the marital | 13 |
| property
as may be just and may enforce such judgments by | 14 |
| ordering a sale of marital
property, with proceeds therefrom to | 15 |
| be applied as determined by the court.
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| (j) After proofs have closed in the final hearing on all | 17 |
| other issues
between the parties (or in conjunction with the | 18 |
| final hearing, if all parties
so stipulate) and before judgment | 19 |
| is entered, a party's petition for
contribution to fees and | 20 |
| costs incurred in the proceeding shall be heard and
decided, in | 21 |
| accordance with the following provisions:
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| (1) A petition for contribution, if not filed before | 23 |
| the final hearing
on other issues between the parties, | 24 |
| shall be filed no later than 30 days after
the closing of | 25 |
| proofs in the final hearing or within such other period as | 26 |
| the
court orders.
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| (2) Any award of contribution to one party from the | 2 |
| other party shall be
based on the criteria for division of | 3 |
| marital property under this Section 503
and, if maintenance | 4 |
| has been awarded, on the criteria for an award of
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| maintenance under Section 504.
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| (3) The filing of a petition for contribution shall not | 7 |
| be deemed to
constitute a waiver of the attorney-client | 8 |
| privilege between the petitioning
party and current or | 9 |
| former counsel; and such a waiver shall not constitute a
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| prerequisite to a hearing for contribution. If either | 11 |
| party's presentation on
contribution, however, includes | 12 |
| evidence within the scope of the
attorney-client | 13 |
| privilege, the disclosure or disclosures shall be narrowly
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| construed and shall not be deemed by the court to | 15 |
| constitute a general waiver
of the privilege as to matters | 16 |
| beyond the scope of the presentation.
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| (4) No finding on which a contribution award is based | 18 |
| or denied shall be
asserted against counsel or former | 19 |
| counsel for purposes of any hearing under
subsection (c) or | 20 |
| (e) of Section 508.
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| (5) A contribution award (payable to either the | 22 |
| petitioning
party or the party's counsel, or jointly, as | 23 |
| the court determines) may be in
the form of either a set | 24 |
| dollar amount or a percentage of fees and costs (or a
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| portion of fees and costs) to be subsequently agreed upon | 26 |
| by the petitioning
party and counsel or, alternatively, |
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| thereafter determined in a hearing
pursuant to subsection | 2 |
| (c) of Section 508 or previously or thereafter
determined | 3 |
| in an independent proceeding under subsection (e) of | 4 |
| Section
508.
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| (6) The changes to this Section 503 made by this | 6 |
| amendatory Act of 1996
apply to cases pending on or after | 7 |
| June 1, 1997, except as otherwise provided
in Section 508.
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| (Source: P.A. 91-445, eff. 1-1-00; 92-306, eff. 1-1-02.)
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