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90_SB0499enr
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Amends the State Universities Article of the Pension
Code. Increases the System's authority to issue bonds,
allowing up to $20,000,000 to be outstanding at any one time.
Limits existing benefits by: (i) excluding certain earnings
after June 30, 1997 from the calculation of the final rate of
earnings; (ii) imposing additional requirements on return to
service following a leave of absence; (iii) requiring a
return to service within one year after discharge in order to
obtain credit for military service; and (iv) removing a
provision allowing beneficiaries to elect to receive death
benefits in multiple payments. (Article 13, Section 5 of the
Illinois Constitution may prevent these limitations from
applying to certain current or former members.) For new
participants only, limits credit for unused sick leave to a
maximum of one year. Changes the definition of "effective
rate of interest" by adding additional factors to be included
in determining the rate, including the desirability of
minimizing volatility in the rate from year to year; states
that the change is a clarification of existing law. Changes
provisions relating to the calculation of interest when
purchasing military service credit. Deletes provisions that
suspend or reduce the annuity of certain persons who return
to employment after retirement. Grants the Secretary of the
Board the power to issue subpoenas. Allows annuitants and
beneficiaries to authorize withholding from their annuities
and benefits. Allows the System to pay benefits to the
trustee of a trust created for the benefit of a minor or
person under legal disability; provides that the System is
not responsible for determining the validity of the trust and
must conclusively rely on the representations of the trustee.
Also makes technical changes. Effective immediately.
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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
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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
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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
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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 Section 503 as follows:
22 (750 ILCS 5/503) (from Ch. 40, par. 503)
23 Sec. 503. Disposition of property.
24 (a) For purposes of this Act, "marital property" means
25 all property acquired by either spouse subsequent to the
26 marriage, except the following, which is known as
27 "non-marital property":
28 (1) property acquired by gift, legacy or descent;
29 (2) property acquired in exchange for property
30 acquired before the marriage or in exchange for property
31 acquired by gift, legacy or descent;
32 (3) property acquired by a spouse after a judgment
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1 of legal separation;
2 (4) property excluded by valid agreement of the
3 parties;
4 (5) any judgment or property obtained by judgment
5 awarded to a spouse from the other spouse;
6 (6) property acquired before the marriage;
7 (7) the increase in value of property acquired by a
8 method listed in paragraphs (1) through (6) of this
9 subsection, irrespective of whether the increase results
10 from a contribution of marital property, non-marital
11 property, the personal effort of a spouse, or otherwise,
12 subject to the right of reimbursement provided in
13 subsection (c) of this Section; and
14 (8) income from property acquired by a method
15 listed in paragraphs (1) through (7) of this subsection
16 if the income is not attributable to the personal effort
17 of a spouse.
18 (b)(1) For purposes of distribution of property pursuant
19 to this Section, all property acquired by either spouse after
20 the marriage and before a judgment of dissolution of marriage
21 or declaration of invalidity of marriage, including
22 non-marital property transferred into some form of
23 co-ownership between the spouses, is presumed to be marital
24 property, regardless of whether title is held individually or
25 by the spouses in some form of co-ownership such as joint
26 tenancy, tenancy in common, tenancy by the entirety, or
27 community property. The presumption of marital property is
28 overcome by a showing that the property was acquired by a
29 method listed in subsection (a) of this Section.
30 (2) For purposes of distribution of property pursuant to
31 this Section, all pension benefits (including pension
32 benefits under the Illinois Pension Code) acquired by either
33 spouse after the marriage and before a judgment of
34 dissolution of marriage or declaration of invalidity of the
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1 marriage are presumed to be marital property, regardless of
2 which spouse participates in the pension plan. The
3 presumption that these pension benefits are marital property
4 is overcome by a showing that the pension benefits were
5 acquired by a method listed in subsection (a) of this
6 Section. The right to a division of pension benefits in just
7 proportions under this Section is enforceable under Section
8 1-119 of the Illinois Pension Code.
9 The value of pension benefits in a retirement system
10 subject to the Illinois Pension Code shall be determined in
11 accordance with the valuation procedures established by the
12 retirement system.
13 The recognition of pension benefits as marital property
14 and the division of those benefits pursuant to a Qualified
15 Illinois Domestic Relations Order shall not be deemed to be a
16 diminishment, alienation, or impairment of those benefits.
17 The division of pension benefits is an allocation of property
18 in which each spouse has a species of common ownership.
19 (c) Commingled marital and non-marital property shall be
20 treated in the following manner, unless otherwise agreed by
21 the spouses:
22 (1) When marital and non-marital property are
23 commingled by contributing one estate of property into
24 another resulting in a loss of identity of the
25 contributed property, the classification of the
26 contributed property is transmuted to the estate
27 receiving the contribution, subject to the provisions of
28 paragraph (2) of this subsection; provided that if
29 marital and non-marital property are commingled into
30 newly acquired property resulting in a loss of identity
31 of the contributing estates, the commingled property
32 shall be deemed transmuted to marital property, subject
33 to the provisions of paragraph (2) of this subsection.
34 (2) When one estate of property makes a
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1 contribution to another estate of property, or when a
2 spouse contributes personal effort to non-marital
3 property, the contributing estate shall be reimbursed
4 from the estate receiving the contribution
5 notwithstanding any transmutation; provided, that no such
6 reimbursement shall be made with respect to a
7 contribution which is not retraceable by clear and
8 convincing evidence, or was a gift, or, in the case of a
9 contribution of personal effort of a spouse to
10 non-marital property, unless the effort is significant
11 and results in substantial appreciation of the
12 non-marital property. Personal effort of a spouse shall
13 be deemed a contribution by the marital estate. The
14 court may provide for reimbursement out of the marital
15 property to be divided or by imposing a lien against the
16 non-marital property which received the contribution.
17 (d) In a proceeding for dissolution of marriage or
18 declaration of invalidity of marriage, or in a proceeding for
19 disposition of property following dissolution of marriage by
20 a court which lacked personal jurisdiction over the absent
21 spouse or lacked jurisdiction to dispose of the property, the
22 court shall assign each spouse's non-marital property to that
23 spouse. It also shall divide the marital property without
24 regard to marital misconduct in just proportions considering
25 all relevant factors, including:
26 (1) the contribution of each party to the
27 acquisition, preservation, or increase or decrease in
28 value of the marital or non-marital property, including
29 the contribution of a spouse as a homemaker or to the
30 family unit;
31 (2) the dissipation by each party of the marital or
32 non-marital property;
33 (3) the value of the property assigned to each
34 spouse;
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1 (4) the duration of the marriage;
2 (5) the relevant economic circumstances of each
3 spouse when the division of property is to become
4 effective, including the desirability of awarding the
5 family home, or the right to live therein for reasonable
6 periods, to the spouse having custody of the children;
7 (6) any obligations and rights arising from a prior
8 marriage of either party;
9 (7) any antenuptial agreement of the parties;
10 (8) the age, health, station, occupation, amount
11 and sources of income, vocational skills, employability,
12 estate, liabilities, and needs of each of the parties;
13 (9) the custodial provisions for any children;
14 (10) whether the apportionment is in lieu of or in
15 addition to maintenance;
16 (11) the reasonable opportunity of each spouse for
17 future acquisition of capital assets and income; and
18 (12) the tax consequences of the property division
19 upon the respective economic circumstances of the
20 parties.
21 (e) Each spouse has a species of common ownership in the
22 marital property which vests at the time dissolution
23 proceedings are commenced and continues only during the
24 pendency of the action. Any such interest in marital
25 property shall not encumber that property so as to restrict
26 its transfer, assignment or conveyance by the title holder
27 unless such title holder is specifically enjoined from making
28 such transfer, assignment or conveyance.
29 (f) In a proceeding for dissolution of marriage or
30 declaration of invalidity of marriage or in a proceeding for
31 disposition of property following dissolution of marriage by
32 a court that lacked personal jurisdiction over the absent
33 spouse or lacked jurisdiction to dispose of the property, the
34 court, in determining the value of the marital and
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1 non-marital property for purposes of dividing the property,
2 shall value the property as of the date of trial or some
3 other date as close to the date of trial as is practicable.
4 (g) The court if necessary to protect and promote the
5 best interests of the children may set aside a portion of the
6 jointly or separately held estates of the parties in a
7 separate fund or trust for the support, maintenance,
8 education, and general welfare of any minor, dependent, or
9 incompetent child of the parties. In making a determination
10 under this subsection, the court may consider, among other
11 things, the conviction of a party of any of the offenses set
12 forth in Section 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14,
13 12-14.1, 12-15, or 12-16 of the Criminal Code of 1961 if the
14 victim is a child of one or both of the parties, and there is
15 a need for, and cost of, care, healing and counseling for the
16 child who is the victim of the crime.
17 (h) Unless specifically directed by a reviewing court,
18 or upon good cause shown, the court shall not on remand
19 consider any increase or decrease in the value of any
20 "marital" or "non-marital" property occurring since the
21 assessment of such property at the original trial or hearing,
22 but shall use only that assessment made at the original trial
23 or hearing.
24 (i) The court may make such judgments affecting the
25 marital property as may be just and may enforce such
26 judgments by ordering a sale of marital property, with
27 proceeds therefrom to be applied as determined by the court.
28 (j) After proofs have closed in the final hearing on all
29 other issues between the parties (or in conjunction with the
30 final hearing, if all parties so stipulate) and before
31 judgment is entered, a party's petition for contribution to
32 fees and costs incurred in the proceeding shall be heard and
33 decided, in accordance with the following provisions:
34 (1) A petition for contribution, if not filed
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1 before the final hearing on other issues between the
2 parties, shall be filed no later than 30 days after the
3 closing of proofs in the final hearing or within such
4 other period as the court orders.
5 (2) Any award of contribution to one party from the
6 other party shall be based on the criteria for division
7 of marital property under this Section 503 and, if
8 maintenance has been awarded, on the criteria for an
9 award of maintenance under Section 504.
10 (3) The filing of a petition for contribution shall
11 not be deemed to constitute a waiver of the
12 attorney-client privilege between the petitioning party
13 and current or former counsel; and such a waiver shall
14 not constitute a prerequisite to a hearing for
15 contribution. If either party's presentation on
16 contribution, however, includes evidence within the scope
17 of the attorney-client privilege, the disclosure or
18 disclosures shall be narrowly construed and shall not be
19 deemed by the court to constitute a general waiver of the
20 privilege as to matters beyond the scope of the
21 presentation.
22 (4) No finding on which a contribution award is
23 based or denied shall be asserted against counsel or
24 former counsel for purposes of any hearing under
25 subsection (c) or (e) of Section 508.
26 (5) A contribution award (payable to either the
27 petitioning party or the party's counsel, or jointly, as
28 the court determines) may be in the form of either a set
29 dollar amount or a percentage of fees and costs (or a
30 portion of fees and costs) to be subsequently agreed upon
31 by the petitioning party and counsel or, alternatively,
32 thereafter determined in a hearing pursuant to subsection
33 (c) of Section 508 or previously or thereafter determined
34 in an independent proceeding under subsection (e) of
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1 Section 508.
2 (6) The changes to this Section 503 made by this
3 amendatory Act of 1996 apply to cases pending on or after
4 June 1, 1997, except as otherwise provided in Section
5 508.
6 (Source: P.A. 88-45; 89-428, eff. 12-13-95; 89-462, eff.
7 5-29-96; 89-712, eff. 6-1-97.)
8 Section 99. Effective date. This Act takes effect July
9 1, 1999 or 6 months after becoming law, whichever is later.