State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ Senate Amendment 001 ]
[ Senate Amendment 002 ][ Senate Amendment 003 ]

90_HB1612enr

      750 ILCS 5/452
          Amends the Illinois Marriage and Dissolution of  Marriage
      Act.   Changes  some  of the requirements that must be met by
      parties seeking a  joint  simplified  dissolution.   Requires
      that  the  duration of the marriage does not exceed 5 (rather
      than 8) years, that  the  total  fair  market  value  of  all
      marital  property  after  deducting  all encumbrances is less
      than $10,000 (rather than  $5,000),  and  that  the  parties'
      combined gross annualized income is less than $35,000 (rather
      than  $25,000).   Adds a requirement that neither party has a
      gross annualized income in excess of $20,000.
                                                     LRB9003937WHmg
HB1612 Enrolled                                LRB9003937WHmg
 1        AN ACT in relation to marital  property,  amending  named
 2    Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    adding Section 1-119 as follows:
 7        (40 ILCS 5/1-119 new)
 8        Sec.   1-119.    Qualified  Illinois  Domestic  Relations
 9    Orders.
10        (a)  For the purposes of this Section:
11             (1)  "Alternate  payee"  means  the  spouse,  former
12        spouse,  child,  or  other  dependent  of  a  member,  as
13        designated in a QILDRO.
14             (2)  "Death benefit" means any  nonperiodic  benefit
15        payable  upon  the death of a member to a survivor of the
16        member  or  to  the   member's   estate   or   designated
17        beneficiary,   including   any  refund  of  contributions
18        following the member's death, whether or not the  benefit
19        is so called under the applicable Article of this Code.
20             (3)  "Disability  benefit"  means  any  periodic  or
21        nonperiodic benefit payable to a disabled member based on
22        occupational  or  nonoccupational  disability or disease,
23        including any periodic or nonperiodic  increases  in  the
24        benefit,  whether  or  not the benefit is so called under
25        the applicable Article of this Code.
26             (4)  "Member" means any person who  participates  in
27        or  has service credits in a retirement system, including
28        a person who is receiving or is  eligible  to  receive  a
29        retirement  or  disability  benefit,  without  regard  to
30        whether the person has withdrawn from service.
31             (5)  "Member's  refund"  means  a return of all or a
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 1        portion of a member's contributions that  is  elected  by
 2        the  member  (or  provided  by  operation  of law) and is
 3        payable before the member's death.
 4             (6)  "Qualified Illinois Domestic  Relations  Order"
 5        or "QILDRO" means an Illinois court order that creates or
 6        recognizes the existence of an alternate payee's right to
 7        receive  all  or a portion of a member's accrued benefits
 8        in a  retirement  system,  is  issued  pursuant  to  this
 9        Section  and  Section  503(b)(2) of the Illinois Marriage
10        and  Dissolution  of  Marriage   Act,   and   meets   the
11        requirements  of  this Section.  A QILDRO is not the same
12        as a qualified domestic relations order  or  QDRO  issued
13        pursuant  to  Section 414(p) of the Internal Revenue Code
14        of 1986.  The requirements of paragraphs (2) and  (3)  of
15        that  Section  do  not  apply to orders issued under this
16        Section  and  shall  not  be  deemed  a  guide   to   the
17        interpretation  of  this Section; a QILDRO is intended to
18        be a domestic  relations  order  within  the  meaning  of
19        paragraph (11) of that Section.
20             (7)  "Regular  payee"  means  the  person  to whom a
21        benefit would be payable in the absence of  an  effective
22        QILDRO.
23             (8)  "Retirement  benefit"  means  any  periodic  or
24        nonperiodic  benefit payable to a retired member based on
25        age or service, or on  the  amounts  accumulated  to  the
26        credit  of  the member for retirement purposes, including
27        any periodic or nonperiodic  increases  in  the  benefit,
28        whether  or  not  the  benefit  is  so  called  under the
29        applicable Article of this Code.
30             (9)  "Retirement  system"  or  "system"  means   any
31        retirement system, pension fund, or other public employee
32        retirement benefit plan that is maintained or established
33        under any of Articles 2 through 18 of this Code.
34             (10)  "Surviving  spouse"  means  the  spouse  of  a
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 1        member at the time of the member's death.
 2             (11)  "Survivor's   benefit"   means   any  periodic
 3        benefit payable to a surviving spouse, child, parent,  or
 4        other  survivor  of  a  deceased  member,  including  any
 5        periodic or nonperiodic increases in the benefit, whether
 6        or  not  the  benefit  is  so called under the applicable
 7        Article of this Code.
 8        (b) (1)  An Illinois court of competent jurisdiction in a
 9    proceeding for declaration of invalidity of  marriage,  legal
10    separation,  or dissolution of marriage that provides for the
11    distribution of property,  or  any  proceeding  to  amend  or
12    enforce  such  a property distribution, may order that all or
13    any part of any  (i)  retirement  benefit  or  (ii)  member's
14    refund  payable to or on behalf of the member be instead paid
15    by the retirement system to a designated alternate payee.
16        (2)  An order issued under this Section provides only for
17    the diversion to  an  alternate  payee  of  certain  benefits
18    otherwise   payable   by  the  retirement  system  under  the
19    provisions of this Code.  The existence of a QILDRO shall not
20    cause the retirement system to pay any benefit, or any amount
21    of benefit, to an alternate payee that would  not  have  been
22    payable  by  the  system to a regular payee in the absence of
23    the QILDRO.
24        (3)  A QILDRO shall not affect the vesting,  accrual,  or
25    amount  of any benefit, nor the date or conditions upon which
26    any benefit becomes payable, nor the right of the  member  or
27    the   member's  survivors  to  make  any  election  otherwise
28    authorized under this Code, except as provided in subsections
29    (i) and (j).
30        (4)  A QILDRO shall not apply to or affect the payment of
31    any survivor's benefit, death  benefit,  disability  benefit,
32    life insurance benefit, or health insurance benefit.
33        (c) (1)  A   QILDRO  must  contain  the  name,  residence
34    address, and social security number of the member and of  the
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 1    alternate  payee  and  must identify the retirement system to
 2    which it is directed and the court issuing the order.
 3        (2)  A QILDRO must  specify  each  benefit  to  which  it
 4    applies,  and it must specify the amount of the benefit to be
 5    paid  to  the  alternate  payee,  which  in  the  case  of  a
 6    nonperiodic benefit shall be expressed as  a  dollar  amount,
 7    and in the case of a periodic benefit shall be expressed as a
 8    dollar amount per month.
 9        (3)  With  respect to each benefit to which it applies, a
10    QILDRO must specify when the order will take effect.  In  the
11    case of a periodic benefit that is being paid at the time the
12    order  is received, a QILDRO shall take effect immediately or
13    on a specified later date; if it takes effect immediately, it
14    shall become effective on  the  first  benefit  payment  date
15    occurring at least 30 days after the order is received by the
16    retirement  system.   In  the  case  of  any other benefit, a
17    QILDRO shall take effect when the  benefit  becomes  payable.
18    However, in no event shall a QILDRO apply to any benefit paid
19    by  the  retirement system before or within 30 days after the
20    order is received.  A retirement system may  adopt  rules  to
21    prorate  the  amount of the first and final periodic payments
22    to an alternate payee.
23        (4)  A QILDRO must also contain any  provisions  required
24    under subsection (n) or (p).
25        (d) (1)  An  order issued under this Section shall not be
26    implemented unless a certified copy of  the  order  has  been
27    filed  with the retirement system.  The system shall promptly
28    notify the member and the alternate payee by first class mail
29    of its receipt of the order.
30        (2)  Neither the retirement system, nor  its  board,  nor
31    any  of  its  employees  shall  be  liable to the member, the
32    regular payee, or any  other  person  for  any  amount  of  a
33    benefit  that  is paid in good faith to an alternate payee in
34    accordance with a QILDRO.
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 1        (3)  At the time the order is submitted to the retirement
 2    system, it  shall  be  accompanied  by  a  nonrefundable  $50
 3    processing  fee  payable to the retirement system, to be used
 4    by the system to defer any administrative costs  arising  out
 5    of the implementation of the QILDRO.
 6        (e) (1)  Each   alternate   payee   is   responsible  for
 7    maintaining a current residence  address  on  file  with  the
 8    retirement  system.  The retirement system shall have no duty
 9    to attempt to locate any alternate payee by any  means  other
10    than  sending written notice to the last known address of the
11    alternate payee on file with the system.
12        (2)  In the  event  that  the  system  cannot  locate  an
13    alternate  payee  when  a benefit becomes payable, the system
14    shall hold the amount of the benefit payable to the alternate
15    payee and make payment to the alternate payee if he or she is
16    located within the following  180  days.   If  the  alternate
17    payee  has not been located within 180 days from the date the
18    benefit becomes payable, the system shall pay the benefit and
19    the amounts held to the  regular  payee.   If  the  alternate
20    payee  is  subsequently  located,  the system shall thereupon
21    implement the QILDRO, but the interest of the alternate payee
22    in any amounts already paid to the  regular  payee  shall  be
23    extinguished.   Amounts  held under this subsection shall not
24    bear interest.
25        (f) (1)  If the amount of a benefit that is specified  in
26    a  QILDRO   for  payment  to  an  alternate payee exceeds the
27    actual amount of  that  benefit  payable  by  the  retirement
28    system,  the  excess  shall  be  disregarded.  The retirement
29    system shall have no liability to any alternate payee or  any
30    other person for the disregarded amounts.
31        (2)  In  the  event of multiple QILDROs against a member,
32    the retirement system shall honor all of the QILDROs  to  the
33    extent  possible.   However, if the total amount of a benefit
34    to be paid to alternate payees under all  QILDROs  in  effect
HB1612 Enrolled            -6-                 LRB9003937WHmg
 1    against  the member exceeds the actual amount of that benefit
 2    payable by the system, the QILDROs shall be satisfied in  the
 3    order  of their receipt by the system until the amount of the
 4    benefit is exhausted, and shall not  be  adjusted  pro  rata.
 5    Any  amounts  that  cannot  be  paid due to exhaustion of the
 6    benefit shall remain unpaid, and the retirement system  shall
 7    have  no liability to any alternate payee or any other person
 8    for such amounts.
 9        (3)  A modification of a QILDRO shall be filed  with  the
10    retirement  system  in  the  same  manner as a new QILDRO.  A
11    modification that does not increase the amount of any benefit
12    payable to the alternate  payee,  and  does  not  expand  the
13    QILDRO  to  affect any benefit not affected by the unmodified
14    QILDRO,  does  not  affect  the  priority  of  payment  under
15    subdivision (f)(2); the priority of payment of a QILDRO  that
16    has  been  modified  to  increase  the  amount of any benefit
17    payable to the alternate payee, or to expand  the  QILDRO  to
18    affect a benefit not affected by the unmodified QILDRO, shall
19    be  based  on  the  date  on  which  the  system receives the
20    modification of the QILDRO.
21        (g) (1)  Upon the death of the alternate  payee  under  a
22    QILDRO,  the  QILDRO  shall expire and cease to be effective,
23    and in the absence of another QILDRO, the  right  to  receive
24    any affected benefit shall revert to the regular payee.
25        (2)  All  QILDROs relating to a member's participation in
26    a particular retirement system shall expire and cease  to  be
27    effective  upon  the  issuance  of  a  member's  refund  that
28    terminates  the  member's  participation  in  that retirement
29    system, without regard to whether the refund was paid to  the
30    member  or  to an alternate payee under a QILDRO.  An expired
31    QILDRO shall not be automatically revived by  any  subsequent
32    return by the member to service under that retirement system.
33        (h) (1)  Within  45  days after receiving a subpoena from
34    any party to a proceeding for declaration  of  invalidity  of
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 1    marriage,  legal  separation,  or  dissolution of marriage in
 2    which a QILDRO may be issued, or after  receiving  a  request
 3    from  the member, a retirement system shall issue a statement
 4    of a member's accumulated  contributions,  accrued  benefits,
 5    and   other   interests  in  the  plan  administered  by  the
 6    retirement system based on the data on file with  the  system
 7    on  the  date  the  subpoena is received, and of any relevant
 8    procedures, rules, or modifications to the model QILDRO  form
 9    that have been adopted by the retirement system.
10        (2)  In  no event shall the retirement system be required
11    to furnish to any person  an  actuarial  opinion  as  to  the
12    present value of the member's benefits or other interests.
13        (3)  The  papers, entries, and records, or parts thereof,
14    of any retirement system may be proved  by  a  copy  thereof,
15    certified  under the signature of the secretary of the system
16    or other duly appointed keeper of the records of  the  system
17    and the corporate seal, if any.
18        (i)  In   a  retirement  system  in  which  a  member  or
19    beneficiary is required to apply to the system for payment of
20    a benefit,  the  required  application  may  be  made  by  an
21    alternate  payee who is entitled to all of that benefit under
22    a  QILDRO,  provided  that  all  other   qualifications   and
23    requirements have been met.  However, the alternate payee may
24    not  make the required application for a member's refund or a
25    retirement benefit if the member  is  in  active  service  or
26    below   the   minimum   age  for  receiving  an  undiscounted
27    retirement annuity in the retirement system that has received
28    the QILDRO or in any other retirement  system  in  which  the
29    member  has  creditable  service  and  in  which the member's
30    rights under the Retirement Systems Reciprocal Act  would  be
31    affected as a result of the alternate payee's application for
32    a member's refund or retirement benefit.
33        (j) (1)  So  long as there is in effect a QILDRO relating
34    to a member's retirement benefit, the affected member may not
HB1612 Enrolled            -8-                 LRB9003937WHmg
 1    elect a form of payment that has the  effect  of  diminishing
 2    the  amount  of  the  payment to which any alternate payee is
 3    entitled, unless the alternate payee  has  consented  to  the
 4    election  in writing and this consent has been filed with the
 5    retirement system.
 6        (2)  If a member attempts to make an election  prohibited
 7    under  subdivision (j)(1), the retirement system shall reject
 8    the election and advise the member of the need to obtain  the
 9    alternate payee's consent.
10        (3)  If   a  retirement  system  discovers  that  it  has
11    mistakenly allowed an election prohibited  under  subdivision
12    (j)(1),   it  shall  thereupon  disallow  that  election  and
13    recalculate any benefits affected  thereby.   If  the  system
14    determines that an amount paid to a regular payee should have
15    been  paid  to  an  alternate  payee,  the  system  shall, if
16    possible, recoup the amounts as provided in subsection (k) of
17    this Section.
18        (k)  In the event that a regular payee  or  an  alternate
19    payee  is  overpaid,  the  retirement system shall recoup the
20    amounts by deducting the overpayment from future payments and
21    making payment to the  other  payee.   The  system  may  make
22    deductions  for  recoupment over a period of time in the same
23    manner as is provided by law or rule for  the  recoupment  of
24    other   amounts   incorrectly  disbursed  by  the  system  in
25    instances not involving  a  QILDRO.   The  retirement  system
26    shall incur no liability to either the alternate payee or the
27    regular  payee as a result of any payment made in good faith,
28    regardless of  whether  the  system  is  able  to  accomplish
29    recoupment.
30        (l) (1)  A   retirement   system  that  has,  before  the
31    effective date of this Section, received  and  implemented  a
32    domestic relations order that directs payment of a benefit to
33    a  person  other  than  the  regular  payee  may  continue to
34    implement that order, and shall not be liable to the  regular
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 1    payee for any amounts paid in good faith to that other person
 2    in accordance with the order.
 3        (2)  A  domestic  relations  order directing payment of a
 4    benefit to a person other than the  regular  payee  that  was
 5    issued  by a court but not implemented by a retirement system
 6    prior to the effective date of this Section  shall  be  void.
 7    However,  a  person who is the beneficiary or alternate payee
 8    of a domestic relations order that  is  rendered  void  under
 9    this  subsection may petition the court that issued the order
10    for an amended order that complies with this Section.
11        (m) (1)  In accordance with Article XIII,  Section  5  of
12    the  Illinois Constitution, which prohibits the impairment or
13    diminishment of benefits granted under this  Code,  a  QILDRO
14    issued  against  a  member of a retirement system established
15    under an Article of this Code that  exempts  the  payment  of
16    benefits or refunds from attachment, garnishment, judgment or
17    other  legal  process  shall  not  be  effective  without the
18    written  consent  of  the  member   if   the   member   began
19    participating  in  the  retirement  system  on  or before the
20    effective date of this Section.  That  consent  must  specify
21    the  retirement  system, the court case number, and the names
22    and social security numbers of the member and  the  alternate
23    payee.   The  consent  must  accompany  the QILDRO when it is
24    filed  with  the  retirement   system,   and   must   be   in
25    substantially the following form:
26                    CONSENT TO ISSUANCE OF QILDRO
27    Court Case Number: ....................
28    Member's Social Security Number: ........................
29    Alternate payee's Social Security Number: ...............
30        I,  (name),  a  member of the (retirement system), hereby
31    consent to the issuance  of  a  Qualified  Illinois  Domestic
32    Relations  Order.  I understand that under the Order, certain
33    benefits that would otherwise be payable  to  me,  or  to  my
HB1612 Enrolled            -10-                LRB9003937WHmg
 1    surviving  spouse or estate, will instead be payable to (name
 2    of alternate payee).  I also  understand  that  my  right  to
 3    elect  certain  forms  of payment of my retirement benefit or
 4    member's refund may be limited as a result of the Order.
 5        DATED:.......................
 6        SIGNED:......................
 7        (2)  A member's consent to the issuance of a QILDRO shall
 8    be irrevocable, and shall apply to any QILDRO  that  pertains
 9    to  the  alternate  payee  and retirement system named in the
10    consent.
11        (n)  An order issued  under  this  Section  shall  be  in
12    substantially  the  following  form  (omitting any provisions
13    that are not applicable):
14             QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER
15        THIS CAUSE coming before the Court for the purpose of the
16    entry of a Qualified Illinois Domestic Relations Order  under
17    the provisions of Section 1-119 of the Illinois Pension Code,
18    the  Court  having  jurisdiction  over  the  parties  and the
19    subject matter hereof;  the Court finding  that  one  of  the
20    parties to this proceeding is a member of a retirement system
21    subject  to  Section 1-119 of the Illinois Pension Code, this
22    Order is entered to implement  a  division  of  that  party's
23    interest  in the retirement system; and the Court being fully
24    advised;
25        IT IS HEREBY ORDERED AS FOLLOWS:
26        (1)  The definitions  and  other  provisions  of  Section
27    1-119  of  the Illinois Pension Code are adopted by reference
28    and made a part of this Order.
29        (2)  Identification of Retirement System and parties:
30             Retirement System: (name and address)
31             Member: (name, residence address and social security
32        number)
33             Alternate payee: (name, residence address and social
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 1        security number)
 2        (3)  The  Retirement  System  shall  pay  the   indicated
 3    amounts  of the following specified benefits to the alternate
 4    payee under the following terms and conditions:
 5             (i)  Of  the  member's   retirement   benefit,   the
 6        Retirement  System  shall  pay  to  the  alternate  payee
 7        $......  per  month, beginning (if the benefit is already
 8        being paid, either immediately or on  a  specified  later
 9        date;  otherwise,  on  the  date  the  retirement benefit
10        commences),  and  ending  upon  the  termination  of  the
11        retirement benefit or the death of the  alternate  payee,
12        whichever occurs first.
13             (ii)  Of  any  member's refund that becomes payable,
14        the Retirement System shall pay to  the  alternate  payee
15        $...... when the member's refund becomes payable.
16        (4)  In  accordance  with subsection (j) of Section 1-119
17    of the Illinois Pension Code, so long as this  QILDRO  is  in
18    effect,  the  member  may  not elect a form of payment of the
19    retirement benefit that has the  effect  of  diminishing  the
20    amount  of  the  payment  to  which  the  alternate  payee is
21    entitled, unless the alternate payee  has  consented  to  the
22    election  in writing and this consent has been filed with the
23    retirement system.
24        (5)  If the member began participating in the  Retirement
25    System  before the effective date of this Section, this Order
26    shall not take  effect  unless  accompanied  by  the  written
27    consent  of  the  member  as required under subsection (m) of
28    Section 1-119 of the Illinois Pension Code.
29        (6)  The Court retains jurisdiction to modify this Order.
30        DATED:.......................
31        SIGNED:......................
32        (o) (1)  A court in Illinois that  has  issued  a  QILDRO
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 1    shall  retain  jurisdiction  of  all  issues  relating to the
 2    modification of the QILDRO.  The  Administrative  Review  Law
 3    and the rules adopted pursuant thereto shall govern and apply
 4    to   all   proceedings   for   judicial   review   of   final
 5    administrative  decisions  of  the  board  of trustees of the
 6    retirement system arising under this Section.
 7        (2)  The term "administrative decision" is defined as  in
 8    Section  3-101 of the Code of Civil Procedure.  The venue for
 9    review under the Administrative Review Law shall be the  same
10    as   is   provided  by  law  for  judicial  review  of  other
11    administrative decisions of the retirement system.
12        (p) (1)  Each retirement system may adopt any  procedures
13    or   rules   that  it  deems  necessary  or  useful  for  the
14    implementation of this Section.
15        (2)  Each retirement system may by rule modify the  model
16    QILDRO  form  provided  in  subsection  (n)  or  require that
17    additional information be included in  QILDROs  presented  to
18    the  system,  as  may  be  necessary to meet the needs of the
19    retirement system.
20        Section 10.  The Illinois  Marriage  and  Dissolution  of
21    Marriage  Act  is amended by changing Sections 452 and 503 as
22    follows:
23        (750 ILCS 5/452)
24        Sec.  452.  Petition.   The  parties  to  a   dissolution
25    proceeding   may   file   a  joint  petition  for  simplified
26    dissolution  if  they  certify  that  all  of  the  following
27    conditions exist when the proceeding is commenced:
28             (a)  Neither party is dependent on the  other  party
29        for  support  or each party is willing to waive the right
30        to support; and the parties understand that  consultation
31        with  attorneys  may  help them determine eligibility for
32        spousal support.
HB1612 Enrolled            -13-                LRB9003937WHmg
 1             (b)  Either party has met the residency  requirement
 2        of Section 401 of this Act.
 3             (c)  Irreconcilable   differences  have  caused  the
 4        irretrievable breakdown of the marriage and  the  parties
 5        have  been  separated  6  months  or  more and efforts at
 6        reconciliation  have  failed  or   future   attempts   at
 7        reconciliation would be impracticable and not in the best
 8        interests of the family.
 9             (d)  No  children  were  born of the relationship of
10        the  parties  or  adopted  by  the  parties  during   the
11        marriage, and the wife, to her knowledge, is not pregnant
12        by the husband.
13             (e)  The  duration of the marriage does not exceed 8
14         5  years.
15             (f)  Neither  party  has  any   interest   in   real
16        property.
17             (g)  The parties waive any rights to maintenance.
18             (h)  The  total  fair  market  value  of all marital
19        property, after deducting all encumbrances, is less  than
20        $10,000,  $5,000 and the combined gross annualized income
21        from all sources is less than $35,000, and neither  party
22        has  a gross annualized income from all sources in excess
23        of $20,000 $25,000.
24             (i)  The parties have disclosed to  each  other  all
25        assets  and  their  tax  returns  for  all  years  of the
26        marriage.
27             (j)  The parties have executed a  written  agreement
28        dividing  all  assets  in  excess  of  $100  in value and
29        allocating  responsibility  for  debts  and   liabilities
30        between the parties.
31    (Source: P.A. 88-39.)
32        (750 ILCS 5/503) (from Ch. 40, par. 503)
33        Sec. 503.  Disposition of property.
HB1612 Enrolled            -14-                LRB9003937WHmg
 1        (a)  For  purposes  of this Act, "marital property" means
 2    all property acquired by  either  spouse  subsequent  to  the
 3    marriage,   except   the   following,   which   is  known  as
 4    "non-marital property":
 5             (1)  property acquired by gift, legacy or descent;
 6             (2)  property  acquired  in  exchange  for  property
 7        acquired before the marriage or in exchange for  property
 8        acquired by gift, legacy or descent;
 9             (3)  property  acquired by a spouse after a judgment
10        of legal separation;
11             (4)  property excluded by  valid  agreement  of  the
12        parties;
13             (5)  any  judgment  or property obtained by judgment
14        awarded to a spouse from the other spouse;
15             (6)  property acquired before the marriage;
16             (7)  the increase in value of property acquired by a
17        method listed in  paragraphs  (1)  through  (6)  of  this
18        subsection,  irrespective of whether the increase results
19        from a  contribution  of  marital  property,  non-marital
20        property,  the personal effort of a spouse, or otherwise,
21        subject  to  the  right  of  reimbursement  provided   in
22        subsection (c) of this Section; and
23             (8)  income  from  property  acquired  by  a  method
24        listed  in paragraphs (1) through (7)  of this subsection
25        if the income is not attributable to the personal  effort
26        of a spouse.
27        (b)(1)  For purposes of distribution of property pursuant
28    to this Section, all property acquired by either spouse after
29    the marriage and before a judgment of dissolution of marriage
30    or   declaration   of   invalidity   of  marriage,  including
31    non-marital  property   transferred   into   some   form   of
32    co-ownership  between  the spouses, is presumed to be marital
33    property, regardless of whether title is held individually or
34    by the spouses in some form of  co-ownership  such  as  joint
HB1612 Enrolled            -15-                LRB9003937WHmg
 1    tenancy,  tenancy  in  common,  tenancy  by  the entirety, or
 2    community property.  The presumption of marital  property  is
 3    overcome  by  a  showing  that the property was acquired by a
 4    method listed in subsection (a) of this Section.
 5        (2)  For purposes of distribution of property pursuant to
 6    this  Section,  all  pension  benefits   (including   pension
 7    benefits  under the Illinois Pension Code) acquired by either
 8    spouse  after  the  marriage  and  before   a   judgment   of
 9    dissolution  of  marriage or declaration of invalidity of the
10    marriage are presumed to be marital property,  regardless  of
11    which   spouse   participates   in  the  pension  plan.   The
12    presumption that these pension benefits are marital  property
13    is  overcome  by  a  showing  that  the pension benefits were
14    acquired by  a  method  listed  in  subsection  (a)  of  this
15    Section.  The right to a division of pension benefits in just
16    proportions  under  this Section is enforceable under Section
17    1-119 of the Illinois Pension Code.
18        The value of pension  benefits  in  a  retirement  system
19    subject  to  the Illinois Pension Code shall be determined in
20    accordance with the valuation procedures established  by  the
21    retirement system.
22        The  recognition  of pension benefits as marital property
23    and the division of those benefits pursuant  to  a  Qualified
24    Illinois Domestic Relations Order shall not be deemed to be a
25    diminishment,  alienation,  or  impairment of those benefits.
26    The division of pension benefits is an allocation of property
27    in which each spouse has a species of common ownership.
28        (c)  Commingled marital and non-marital property shall be
29    treated in the following manner, unless otherwise  agreed  by
30    the spouses:
31             (1)  When   marital  and  non-marital  property  are
32        commingled by contributing one estate  of  property  into
33        another   resulting   in   a  loss  of  identity  of  the
34        contributed   property,   the   classification   of   the
HB1612 Enrolled            -16-                LRB9003937WHmg
 1        contributed  property  is  transmuted   to   the   estate
 2        receiving  the contribution, subject to the provisions of
 3        paragraph  (2)  of  this  subsection;  provided  that  if
 4        marital and  non-marital  property  are  commingled  into
 5        newly  acquired  property resulting in a loss of identity
 6        of the  contributing  estates,  the  commingled  property
 7        shall  be  deemed transmuted to marital property, subject
 8        to the provisions of paragraph (2) of this subsection.
 9             (2)  When   one   estate   of   property   makes   a
10        contribution to another estate of  property,  or  when  a
11        spouse   contributes   personal   effort  to  non-marital
12        property, the contributing  estate  shall  be  reimbursed
13        from    the    estate    receiving    the    contribution
14        notwithstanding any transmutation; provided, that no such
15        reimbursement   shall   be   made   with   respect  to  a
16        contribution  which  is  not  retraceable  by  clear  and
17        convincing evidence, or was a gift, or, in the case of  a
18        contribution   of   personal   effort   of  a  spouse  to
19        non-marital property, unless the  effort  is  significant
20        and   results   in   substantial   appreciation   of  the
21        non-marital property.  Personal effort of a spouse  shall
22        be  deemed  a  contribution  by  the marital estate.  The
23        court may provide for reimbursement out  of  the  marital
24        property  to be divided or by imposing a lien against the
25        non-marital property which received the contribution.
26        (d)  In a  proceeding  for  dissolution  of  marriage  or
27    declaration of invalidity of marriage, or in a proceeding for
28    disposition  of property following dissolution of marriage by
29    a court which lacked personal jurisdiction  over  the  absent
30    spouse or lacked jurisdiction to dispose of the property, the
31    court shall assign each spouse's non-marital property to that
32    spouse.   It  also  shall divide the marital property without
33    regard to marital misconduct in just proportions  considering
34    all relevant factors, including:
HB1612 Enrolled            -17-                LRB9003937WHmg
 1             (1)  the   contribution   of   each   party  to  the
 2        acquisition, preservation, or  increase  or  decrease  in
 3        value  of  the marital or non-marital property, including
 4        the contribution of a spouse as a  homemaker  or  to  the
 5        family unit;
 6             (2)  the dissipation by each party of the marital or
 7        non-marital property;
 8             (3)  the  value  of  the  property  assigned to each
 9        spouse;
10             (4)  the duration of the marriage;
11             (5)  the relevant  economic  circumstances  of  each
12        spouse  when  the  division  of  property  is  to  become
13        effective,  including  the  desirability  of awarding the
14        family home, or the right to live therein for  reasonable
15        periods, to the spouse having custody of the children;
16             (6)  any obligations and rights arising from a prior
17        marriage of either party;
18             (7)  any antenuptial agreement of the parties;
19             (8)  the  age,  health,  station, occupation, amount
20        and sources of income, vocational skills,  employability,
21        estate, liabilities, and needs of each of the parties;
22             (9)  the custodial provisions for any children;
23             (10)  whether  the apportionment is in lieu of or in
24        addition to maintenance;
25             (11)  the reasonable opportunity of each spouse  for
26        future acquisition of capital assets and income; and
27             (12)  the  tax consequences of the property division
28        upon  the  respective  economic  circumstances   of   the
29        parties.
30        (e)  Each spouse has a species of common ownership in the
31    marital   property   which  vests  at  the  time  dissolution
32    proceedings are  commenced  and  continues  only  during  the
33    pendency  of  the  action.   Any  such  interest  in  marital
34    property  shall  not encumber that property so as to restrict
HB1612 Enrolled            -18-                LRB9003937WHmg
 1    its transfer, assignment or conveyance by  the  title  holder
 2    unless such title holder is specifically enjoined from making
 3    such transfer, assignment or conveyance.
 4        (f)  In  a  proceeding  for  dissolution  of  marriage or
 5    declaration of invalidity of marriage or in a proceeding  for
 6    disposition  of property following dissolution of marriage by
 7    a court that lacked personal  jurisdiction  over  the  absent
 8    spouse or lacked jurisdiction to dispose of the property, the
 9    court,   in   determining   the  value  of  the  marital  and
10    non-marital property for purposes of dividing  the  property,
11    shall  value  the  property  as  of the date of trial or some
12    other date as close to the date of trial as is practicable.
13        (g)  The court if necessary to protect  and  promote  the
14    best interests of the children may set aside a portion of the
15    jointly  or  separately  held  estates  of  the  parties in a
16    separate  fund  or  trust  for  the   support,   maintenance,
17    education,  and  general  welfare of any minor, dependent, or
18    incompetent child of the parties.  In making a  determination
19    under  this  subsection,  the court may consider, among other
20    things, the conviction of a party of any of the offenses  set
21    forth  in Section 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14,
22    12-14.1, 12-15, or 12-16 of the Criminal Code of 1961 if  the
23    victim is a child of one or both of the parties, and there is
24    a need for, and cost of, care, healing and counseling for the
25    child who is the victim of the crime.
26        (h)  Unless  specifically  directed by a reviewing court,
27    or upon good cause shown,  the  court  shall  not  on  remand
28    consider  any  increase  or  decrease  in  the  value  of any
29    "marital"  or  "non-marital"  property  occurring  since  the
30    assessment of such property at the original trial or hearing,
31    but shall use only that assessment made at the original trial
32    or hearing.
33        (i)  The court may  make  such  judgments  affecting  the
34    marital  property  as  may  be  just  and  may  enforce  such
HB1612 Enrolled            -19-                LRB9003937WHmg
 1    judgments  by  ordering  a  sale  of  marital  property, with
 2    proceeds therefrom to be applied as determined by the court.
 3        (j)  After proofs have closed in the final hearing on all
 4    other issues between the parties (or in conjunction with  the
 5    final  hearing,  if  all  parties  so  stipulate)  and before
 6    judgment is entered, a party's petition for  contribution  to
 7    fees  and costs incurred in the proceeding shall be heard and
 8    decided, in accordance with the following provisions:
 9             (1)  A  petition  for  contribution,  if  not  filed
10        before the final hearing  on  other  issues  between  the
11        parties,  shall  be filed no later than 30 days after the
12        closing of proofs in the final  hearing  or  within  such
13        other period as the court orders.
14             (2)  Any award of contribution to one party from the
15        other  party  shall be based on the criteria for division
16        of marital  property  under  this  Section  503  and,  if
17        maintenance  has  been  awarded,  on  the criteria for an
18        award of maintenance under Section 504.
19             (3)  The filing of a petition for contribution shall
20        not  be  deemed   to   constitute   a   waiver   of   the
21        attorney-client  privilege  between the petitioning party
22        and current or former counsel; and such  a  waiver  shall
23        not   constitute   a   prerequisite   to  a  hearing  for
24        contribution.   If   either   party's   presentation   on
25        contribution, however, includes evidence within the scope
26        of  the  attorney-client  privilege,  the  disclosure  or
27        disclosures  shall be narrowly construed and shall not be
28        deemed by the court to constitute a general waiver of the
29        privilege  as  to  matters  beyond  the  scope   of   the
30        presentation.
31             (4)  No  finding  on  which  a contribution award is
32        based or denied shall  be  asserted  against  counsel  or
33        former   counsel   for  purposes  of  any  hearing  under
34        subsection (c) or (e) of Section 508.
HB1612 Enrolled            -20-                LRB9003937WHmg
 1             (5)  A contribution award  (payable  to  either  the
 2        petitioning  party or the party's counsel, or jointly, as
 3        the court determines) may be in the form of either a  set
 4        dollar  amount  or  a  percentage of fees and costs (or a
 5        portion of fees and costs) to be subsequently agreed upon
 6        by the petitioning party and counsel  or,  alternatively,
 7        thereafter determined in a hearing pursuant to subsection
 8        (c) of Section 508 or previously or thereafter determined
 9        in  an  independent  proceeding  under  subsection (e) of
10        Section 508.
11             (6)  The changes to this Section 503  made  by  this
12        amendatory Act of 1996 apply to cases pending on or after
13        June  1,  1997,  except  as otherwise provided in Section
14        508.
15    (Source: P.A. 88-45;  89-428,  eff.  12-13-95;  89-462,  eff.
16    5-29-96; 89-712, eff. 6-1-97.)
17        Section  99.  Effective date.  This Act takes effect July
18    1, 1999 or 6 months after becoming law, whichever is later.

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