State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ]

90_HB2152enr

      735 ILCS 5/12-112         from Ch. 110, par. 12-112
      750 ILCS 5/505            from Ch. 40, par. 505
      750 ILCS 45/15            from Ch. 40, par. 2515
          Amends the Illinois Marriage and Dissolution of  Marriage
      Act   and  the Illinois Parentage Act of 1984 to provide that
      the court may pierce the  ownership  veil  of  an  entity  to
      discover assets of a non-custodial parent held in the name of
      that entity if there is a financial unity of interest between
      the  two.  Provides that the court may order discovery of the
      assets and compel the application of  any  discovered  assets
      toward   payment   on   the   judgment  for  support  if  the
      non-custodial  parent  and  the   entity   maintain   records
      together,  fail  to  maintain  an  arms  length  relationship
      between   themselves  with  regard  to  any  assets,  or  the
      non-custodial parent transfers assets to the entity with  the
      intent to perpetrate a fraud on the custodial parent.  Amends
      the   Code   of   Civil  Procedure  in  provisions  regarding
      enforcement of judgments to provide for  enforcement  against
      assets discovered under this procedure.
                                                     LRB9004203SMdv
HB2152 Enrolled                                LRB9004203SMdv
 1        AN ACT regarding enforcement of child support orders.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The Code of Civil  Procedure  is  amended  by
 5    changing Section 12-112 as follows:
 6        (735 ILCS 5/12-112) (from Ch. 110, par. 12-112)
 7        Sec.  12-112.  What liable to enforcement. All the lands,
 8    tenements, real estate, goods and chattels (except such as is
 9    by law declared to be exempt) of every  person  against  whom
10    any  judgment  has  been or shall be hereafter entered in any
11    court, for any debt, damages, costs, or other sum  of  money,
12    shall  be  liable  to  be  sold upon such judgment.  Any real
13    property, or any beneficial interest in a land trust, held in
14    tenancy by the entirety shall not be liable to be  sold  upon
15    judgment entered on or after October 1, 1990 against only one
16    of the tenants.  However, any income from such property shall
17    be  subject  to  garnishment  as  provided  in Part 7 of this
18    Article XII, whether judgment has been entered against one or
19    both of the tenants.
20        If the court authorizes the  piercing  of  the  ownership
21    veil  pursuant  to  Section  505 of the Illinois Marriage and
22    Dissolution of Marriage Act or Section  15  of  the  Illinois
23    Parentage  Act  of 1984, any assets determined to be those of
24    the non-custodial parent, although not held in  name  of  the
25    non-custodial parent, shall be subject to attachment or other
26    provisional   remedy   in   accordance   with  the  procedure
27    prescribed  by  this  Code.   The  court  may  not  authorize
28    attachment of property or any other provisional remedy  under
29    this  paragraph  unless it has obtained jurisdiction over the
30    entity holding title to the property  by  proper  service  on
31    that entity.  With respect to assets which are real property,
HB2152 Enrolled            -2-                 LRB9004203SMdv
 1    no  order entered as described in this paragraph shall affect
 2    the rights of  bona  fide  purchasers,  mortgagees,  judgment
 3    creditors,  or other lien holders who acquire their interests
 4    in the property prior to the time a  notice  of  lis  pendens
 5    pursuant  to  this  Code  or a copy of the order is placed of
 6    record in the office of the recorder of deeds for the  county
 7    in which the real property is located.
 8        This  amendatory  Act  of 1995 is declarative of existing
 9    law.
10    (Source: P.A. 89-88, eff. 6-30-95; 89-438, eff. 12-15-95.)
11        Section 10.  The Illinois  Marriage  and  Dissolution  of
12    Marriage Act is amended by changing Section 505 as follows:
13        (750 ILCS 5/505) (from Ch. 40, par. 505)
14        Sec. 505.  Child support; contempt; penalties.
15        (a)  In  a  proceeding for dissolution of marriage, legal
16    separation,  declaration  of  invalidity   of   marriage,   a
17    proceeding  for  child  support  following dissolution of the
18    marriage by a court which lacked personal  jurisdiction  over
19    the  absent  spouse,  a  proceeding  for  modification  of  a
20    previous  order  for  child support under Section 510 of this
21    Act, or any proceeding authorized under Section 501 or 601 of
22    this Act, the court may order either or both parents owing  a
23    duty  of  support to a child of the marriage to pay an amount
24    reasonable and necessary for his support, without  regard  to
25    marital  misconduct.  The  duty  of  support  owed to a minor
26    child includes the obligation to provide for  the  reasonable
27    and  necessary physical, mental and emotional health needs of
28    the child.
29             (1)  The Court shall determine the minimum amount of
30        support by using the following guidelines:
31          Number of Children       Percent of Supporting Party's
32              Net Income
HB2152 Enrolled            -3-                 LRB9004203SMdv
 1                  1                             20%
 2                  2                             25%
 3                  3                             32%
 4                  4                             40%
 5                  5                             45%
 6              6 or more                         50%
 7             (2)  The above guidelines shall be applied  in  each
 8        case unless the court makes a finding that application of
 9        the  guidelines would be inappropriate, after considering
10        the best interests of the  child  in  light  of  evidence
11        including but not limited to one or more of the following
12        relevant factors:
13                  (a)  the  financial  resources and needs of the
14             child;
15                  (b)  the financial resources and needs  of  the
16             custodial parent;
17                  (c)  the  standard  of  living  the child would
18             have enjoyed had the marriage not been dissolved;
19                  (d)  the physical and  emotional  condition  of
20             the child, and his educational needs; and
21                  (e)  the  financial  resources and needs of the
22             non-custodial parent.
23             If the  court  deviates  from  the  guidelines,  the
24        court's  finding  shall  state the amount of support that
25        would  have  been  required  under  the  guidelines,   if
26        determinable.   The  court  shall  include  the reason or
27        reasons for the variance from the guidelines.
28             (3)  "Net income" is defined as  the  total  of  all
29        income from all sources, minus the following deductions:
30                  (a)  Federal  income  tax  (properly calculated
31             withholding or estimated payments);
32                  (b)  State  income  tax  (properly   calculated
33             withholding or estimated payments);
34                  (c)  Social Security (FICA payments);
HB2152 Enrolled            -4-                 LRB9004203SMdv
 1                  (d)  Mandatory     retirement     contributions
 2             required by law or as a condition of employment;
 3                  (e)  Union dues;
 4                  (f)  Dependent          and          individual
 5             health/hospitalization insurance premiums;
 6                  (g)  Prior    obligations    of    support   or
 7             maintenance actually paid pursuant to a court order;
 8                  (h)  Expenditures for repayment of  debts  that
 9             represent  reasonable and necessary expenses for the
10             production of income, medical expenditures necessary
11             to preserve life or health, reasonable  expenditures
12             for  the  benefit of the child and the other parent,
13             exclusive of gifts.   The  court  shall  reduce  net
14             income  in determining the minimum amount of support
15             to be ordered only for the period that such payments
16             are  due  and  shall  enter  an   order   containing
17             provisions  for its self-executing modification upon
18             termination of such payment period.
19             (4)  In cases where the  court  order  provides  for
20        health/hospitalization  insurance  coverage  pursuant  to
21        Section   505.2  of  this  Act,  the  premiums  for  that
22        insurance, or that portion of the premiums for which  the
23        supporting  party is responsible in the case of insurance
24        provided through  an  employer's  health  insurance  plan
25        where  the employer pays a portion of the premiums, shall
26        be subtracted from net income in determining the  minimum
27        amount of support to be ordered.
28             (4.5)  In  a  proceeding for child support following
29        dissolution of  the  marriage  by  a  court  that  lacked
30        personal  jurisdiction  over  the  absent  spouse, and in
31        which the court is requiring payment of support  for  the
32        period  before  the  date an order for current support is
33        entered, there  is  a  rebuttable  presumption  that  the
34        supporting  party's  net  income for the prior period was
HB2152 Enrolled            -5-                 LRB9004203SMdv
 1        the same as his or her net income at the time  the  order
 2        for current support is entered.
 3             (5)  If  the net income cannot be determined because
 4        of default or any other reason,  the  court  shall  order
 5        support   in  an  amount  considered  reasonable  in  the
 6        particular case.  The final  order  in  all  cases  shall
 7        state the support level in dollar amounts.
 8        (b)  Failure  of either parent to comply with an order to
 9    pay  support  shall  be  punishable  as  in  other  cases  of
10    contempt.  In addition to other penalties provided by law the
11    Court may, after finding the parent guilty of contempt, order
12    that the parent be:
13             (1)  placed on probation  with  such  conditions  of
14        probation as the Court deems advisable;
15             (2)  sentenced to periodic imprisonment for a period
16        not to exceed 6 months; provided, however, that the Court
17        may  permit the parent to be released for periods of time
18        during the day or night to:
19                  (A)  work; or
20                  (B)  conduct a business or other  self-employed
21             occupation.
22        The  Court  may  further  order  any  part  or all of the
23    earnings  of  a  parent  during  a   sentence   of   periodic
24    imprisonment paid to the Clerk of the Circuit Court or to the
25    parent  having  custody  or to the guardian having custody of
26    the minor children of the sentenced parent for the support of
27    said minor children until further order of the Court.
28        If there is a unity of interest and ownership  sufficient
29    to  render  no  financial  separation between a non-custodial
30    parent and another person or persons or business entity,  the
31    court  may  pierce the ownership veil of the person, persons,
32    or business entity to discover assets  of  the  non-custodial
33    parent  held  in  the  name of that person, those persons, or
34    that  business  entity.    The  following  circumstances  are
HB2152 Enrolled            -6-                 LRB9004203SMdv
 1    sufficient to authorize a court to  order  discovery  of  the
 2    assets of a person, persons, or business entity and to compel
 3    the  application  of  any discovered assets toward payment on
 4    the judgment for support:
 5        (1)  the non-custodial parent and the person, persons, or
 6    business entity maintain records together.
 7        (2)  the non-custodial parent and the person, persons, or
 8    business entity fail to maintain an arms length  relationship
 9    between themselves with regard to any assets.
10        (3)  the  non-custodial  parent  transfers  assets to the
11    person, persons,  or  business  entity  with  the  intent  to
12    perpetrate a fraud on the custodial parent.
13        With  respect to assets which are real property, no order
14    entered under this paragraph shall affect the rights of  bona
15    fide  purchasers,  mortgagees,  judgment  creditors, or other
16    lien holders who  acquire their  interests  in  the  property
17    prior  to  the  time  a notice of lis pendens pursuant to the
18    Code of Civil Procedure or a copy of the order is  placed  of
19    record  in the office of the recorder of deeds for the county
20    in which the real property is located.
21        The court may also order in cases where the parent is  90
22    days  or  more  delinquent  in payment of support or has been
23    adjudicated  in  arrears  in  an  amount  equal  to  90  days
24    obligation  or  more,  that  the  parent's  Illinois  driving
25    privileges be suspended until the court determines  that  the
26    parent  is in compliance with the order of support. The court
27    may also order that the parent be issued a  family  financial
28    responsibility   driving  permit  that  would  allow  limited
29    driving privileges for employment  and  medical  purposes  in
30    accordance with Section 7-702.1 of the Illinois Vehicle Code.
31    The  clerk  of  the  circuit  court  shall  certify the order
32    suspending the driving privileges of the parent  or  granting
33    the  issuance  of  a  family financial responsibility driving
34    permit to the Secretary of State on forms prescribed  by  the
HB2152 Enrolled            -7-                 LRB9004203SMdv
 1    Secretary.  Upon  receipt of the authenticated documents, the
 2    Secretary  of  State  shall  suspend  the  parent's   driving
 3    privileges  until  further  order  of the court and shall, if
 4    ordered by the court, subject to the  provisions  of  Section
 5    7-702.1   of  the  Illinois  Vehicle  Code,  issue  a  family
 6    financial responsibility driving permit to the parent.
 7        (c)  A one-time charge  of  20%  is  imposable  upon  the
 8    amount  of  past-due child support owed on July 1, 1988 which
 9    has accrued under a support order entered by the court.   The
10    charge  shall be imposed in accordance with the provisions of
11    Section 10-21 of the Illinois Public Aid Code  and  shall  be
12    enforced by the court upon petition.
13        (d)  Any  new  or  existing  support order entered by the
14    court under this Section shall be deemed to be  a  series  of
15    judgments   against  the  person  obligated  to  pay  support
16    thereunder, each such judgment to be in the  amount  of  each
17    payment  or  installment of support and each such judgment to
18    be deemed entered as of the date the corresponding payment or
19    installment becomes due under the terms of the support order.
20    Each such judgment shall have  the  full  force,  effect  and
21    attributes of any other judgment of this State, including the
22    ability to be enforced.
23        (e)  When  child  support is to be paid through the clerk
24    of the court in a county of 1,000,000  inhabitants  or  less,
25    the  order  shall  direct the obligor to pay to the clerk, in
26    addition to the child support payments, all fees  imposed  by
27    the  county  board  under  paragraph (3) of subsection (u) of
28    Section 27.1 of the Clerks of Courts  Act.   Unless  paid  in
29    cash  or pursuant to an order for withholding, the payment of
30    the fee shall be by a separate instrument  from  the  support
31    payment and shall be made to the order of the Clerk.
32        (f)  An  order  for support entered or modified in a case
33    in which a  party  is  receiving  child  and  spouse  support
34    services  under  Article  X  of  the Illinois Public Aid Code
HB2152 Enrolled            -8-                 LRB9004203SMdv
 1    shall include a provision requiring the obligor to notify the
 2    Illinois Department of Public Aid, within 7 days, (i) of  the
 3    name  and  address  of  any new employer of the obligor, (ii)
 4    whether the obligor has access to health  insurance  coverage
 5    through  the  employer  or other group coverage, and (iii) if
 6    so, the policy name and  number  and  the  names  of  persons
 7    covered under the policy.
 8        (g)  An  order  for support shall include a date on which
 9    the current support obligation terminates.   The  termination
10    date  shall  be  no  earlier than the date on which the child
11    covered by the order will attain the age of  majority  or  is
12    otherwise  emancipated.    The  order for support shall state
13    that the termination date does not  apply  to  any  arrearage
14    that  may  remain  unpaid  on  that  date.   Nothing  in this
15    subsection shall be  construed  to  prevent  the  court  from
16    modifying the order.
17    (Source:  P.A.  88-307;  88-687,  eff.  1-24-95;  89-88, eff.
18    6-30-95; 89-92, eff. 7-1-96; 89-626, eff. 8-9-96.)
19        Section 15.   The  Illinois  Parentage  Act  of  1984  is
20    amended by changing Section 15 as follows:
21        (750 ILCS 45/15) (from Ch. 40, par. 2515)
22        Sec. 15.  Enforcement of Judgment or Order.
23        (a)  If existence of the parent and child relationship is
24    declared,   or   paternity   or  duty  of  support  has  been
25    established under this Act or under prior law  or  under  the
26    law   of   any  other  jurisdiction,  the  judgment  rendered
27    thereunder may be enforced in the same or  other  proceedings
28    by  any  party  or any person or agency that has furnished or
29    may furnish financial assistance or services  to  the  child.
30    Sections  14,  16 and 20 of this Act shall also be applicable
31    with respect to entry, modification and  enforcement  of  any
32    support  judgment  entered under provisions of the "Paternity
HB2152 Enrolled            -9-                 LRB9004203SMdv
 1    Act", approved July 5, 1957, as  amended,  repealed  July  1,
 2    1985.
 3        (b)  Failure  to comply with any order of the court shall
 4    be punishable as contempt as in other  cases  of  failure  to
 5    comply  under  the  "Illinois  Marriage  and  Dissolution  of
 6    Marriage  Act",  as now or hereafter amended.  In addition to
 7    other penalties provided by law, the court may, after finding
 8    the party guilty of contempt, order that the party be:
 9             (1)  Placed on probation  with  such  conditions  of
10        probation as the court deems advisable;
11             (2)  Sentenced to periodic imprisonment for a period
12        not  to  exceed  6 months.  However, the court may permit
13        the party to be released for periods of time  during  the
14        day  or  night  to  work  or  conduct  business  or other
15        self-employed occupation.  The court  may  further  order
16        any part of all the earnings of a party during a sentence
17        of  periodic  imprisonment to be paid to the Clerk of the
18        Circuit Court or to the person or parent  having  custody
19        of  the  minor  child for the support of said child until
20        further order of the court.
21             (2.5) The court may also pierce the  ownership  veil
22        of  a  person,  persons,  or  business entity to discover
23        assets of a non-custodial parent held in the name of that
24        person, those persons, or that business entity  if  there
25        is a unity of interest and ownership sufficient to render
26        no  financial separation between the non-custodial parent
27        and that person, those persons, or the  business  entity.
28        The following circumstances are sufficient for a court to
29        order  discovery  of  the assets of a person, persons, or
30        business entity and to  compel  the  application  of  any
31        discovered  assets  toward  payment  on  the judgment for
32        support:
33                  (A)  the non-custodial parent and  the  person,
34             persons,   or   business   entity  maintain  records
HB2152 Enrolled            -10-                LRB9004203SMdv
 1             together.
 2                  (B) the non-custodial parent  and  the  person,
 3             persons, or business entity fail to maintain an arms
 4             length  relationship  between themselves with regard
 5             to any assets.
 6                  (C) the non-custodial parent  transfers  assets
 7             to  the person, persons, or business entity with the
 8             intent  to  perpetrate  a  fraud  on  the  custodial
 9             parent.
10        With respect to assets which are real property, no  order
11    entered  under this subdivision (2.5) shall affect the rights
12    of bona fide purchasers, mortgagees, judgment  creditors,  or
13    other  lien  holders  who  acquire  their  interests  in  the
14    property  prior  to the time a notice of lis pendens pursuant
15    to the Code of Civil Procedure or a  copy  of  the  order  is
16    placed  of  record in the office of the recorder of deeds for
17    the county in which the real property is located.
18             (3)  The court may also order that  in  cases  where
19        the  party  is  90  days or more delinquent in payment of
20        support or has been adjudicated in arrears in  an  amount
21        equal  to  90  days  obligation or more, that the party's
22        Illinois driving privileges be suspended until the  court
23        determines  that  the  party  is  in  compliance with the
24        judgement or duty of support. The court  may  also  order
25        that   the   parent   be   issued   a   family  financial
26        responsibility driving permit that  would  allow  limited
27        driving privileges for employment and medical purposes in
28        accordance  with  Section 7-702.1 of the Illinois Vehicle
29        Code. The clerk of the circuit court  shall  certify  the
30        order  suspending the driving privileges of the parent or
31        granting   the   issuance   of   a    family    financial
32        responsibility  driving  permit to the Secretary of State
33        on forms prescribed by the Secretary. Upon receipt of the
34        authenticated documents, the  Secretary  of  State  shall
HB2152 Enrolled            -11-                LRB9004203SMdv
 1        suspend  the  party's  driving  privileges  until further
 2        order of the court and shall, if ordered  by  the  court,
 3        subject  to  the  provisions  of  Section  7-702.1 of the
 4        Illinois  Vehicle  Code,   issue   a   family   financial
 5        responsibility driving permit to the parent.
 6        (c)  In any post-judgment proceeding to enforce or modify
 7    the  judgment  the parties shall continue to be designated as
 8    in the original proceeding.
 9    (Source: P.A. 89-92, eff. 7-1-96.)

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