State of Illinois
92nd General Assembly
Legislation

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92_SB0433

 
                                              SRS92SB0019JJap

 1        AN ACT concerning family law.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Marriage  and  Dissolution  of
 5    Marriage Act is amended by changing Section 503 as follows:

 6        (750 ILCS 5/503) (from Ch. 40, par. 503)
 7        Sec. 503.  Disposition of property.
 8        (a)  For  purposes  of this Act, "marital property" means
 9    all property acquired by  either  spouse  subsequent  to  the
10    marriage,   except   the   following,   which   is  known  as
11    "non-marital property":
12             (1)  property acquired by gift, legacy or descent;
13             (2)  property  acquired  in  exchange  for  property
14        acquired before the marriage or in exchange for  property
15        acquired by gift, legacy or descent;
16             (3)  property  acquired by a spouse after a judgment
17        of legal separation;
18             (4)  property excluded by  valid  agreement  of  the
19        parties;
20             (5)  any  judgment  or property obtained by judgment
21        awarded to a spouse from the other spouse;
22             (6)  property acquired before the marriage;
23             (7)  the increase in value of property acquired by a
24        method listed in  paragraphs  (1)  through  (6)  of  this
25        subsection,  irrespective of whether the increase results
26        from a  contribution  of  marital  property,  non-marital
27        property,  the personal effort of a spouse, or otherwise,
28        subject  to  the  right  of  reimbursement  provided   in
29        subsection (c) of this Section; and
30             (8)  income  from  property  acquired  by  a  method
31        listed  in paragraphs (1) through (7)  of this subsection
 
                            -2-               SRS92SB0019JJap
 1        if the income is not attributable to the personal  effort
 2        of a spouse.
 3        (b)(1)  For purposes of distribution of property pursuant
 4    to this Section, all property acquired by either spouse after
 5    the marriage and before a judgment of dissolution of marriage
 6    or   declaration   of   invalidity   of  marriage,  including
 7    non-marital  property   transferred   into   some   form   of
 8    co-ownership  between  the spouses, is presumed to be marital
 9    property, regardless of whether title is held individually or
10    by the spouses in some form of  co-ownership  such  as  joint
11    tenancy,  tenancy  in  common,  tenancy  by  the entirety, or
12    community property.  The presumption of marital  property  is
13    overcome  by  a  showing  that the property was acquired by a
14    method listed in subsection (a) of this Section.
15        (2)  For purposes of distribution of property pursuant to
16    this  Section,  all  pension  benefits   (including   pension
17    benefits  under the Illinois Pension Code) acquired by either
18    spouse  after  the  marriage  and  before   a   judgment   of
19    dissolution  of  marriage or declaration of invalidity of the
20    marriage are presumed to be marital property,  regardless  of
21    which   spouse   participates   in  the  pension  plan.   The
22    presumption that these pension benefits are marital  property
23    is  overcome  by  a  showing  that  the pension benefits were
24    acquired by  a  method  listed  in  subsection  (a)  of  this
25    Section.  The right to a division of pension benefits in just
26    proportions  under  this Section is enforceable under Section
27    1-119 of the Illinois Pension Code.
28        The value of pension  benefits  in  a  retirement  system
29    subject  to  the Illinois Pension Code shall be determined in
30    accordance with the valuation procedures established  by  the
31    retirement system.
32        The  recognition  of pension benefits as marital property
33    and the division of those benefits pursuant  to  a  Qualified
34    Illinois Domestic Relations Order shall not be deemed to be a
 
                            -3-               SRS92SB0019JJap
 1    diminishment,  alienation,  or  impairment of those benefits.
 2    The division of pension benefits is an allocation of property
 3    in which each spouse has a species of common ownership.
 4        (3)  For purposes of distribution of property under  this
 5    Section, all stock options granted to either spouse after the
 6    marriage  and before a judgment of dissolution of marriage or
 7    declaration of invalidity  of  marriage,  whether  vested  or
 8    non-vested  or  whether  their  value  is  ascertainable, are
 9    presumed to be marital property.  This presumption of marital
10    property is overcome by a showing that the stock options were
11    acquired by  a  method  listed  in  subsection  (a)  of  this
12    Section.   The court shall allocate stock options between the
13    parties at  the  time  of  the  judgment  of  dissolution  of
14    marriage or declaration of invalidity of marriage recognizing
15    that  the  value  of  the  stock  options  may  not  be  then
16    determinable  and that the actual division of the options may
17    not occur until a future  date.   In  making  the  allocation
18    between the parties, the court shall consider, in addition to
19    the  factors set forth in subsection (d) of this Section, the
20    following:
21             (i)  All circumstances underlying the grant  of  the
22        stock  option  including  but  not limited to whether the
23        grant was for past, present, or future  efforts,  or  any
24        combination thereof.
25             (ii)  The  length  of  time  from  the  grant of the
26        option to the time the option is exercisable.
27        (c)  Commingled marital and non-marital property shall be
28    treated in the following manner, unless otherwise  agreed  by
29    the spouses:
30             (1)  When   marital  and  non-marital  property  are
31        commingled by contributing one estate  of  property  into
32        another   resulting   in   a  loss  of  identity  of  the
33        contributed   property,   the   classification   of   the
34        contributed  property  is  transmuted   to   the   estate
 
                            -4-               SRS92SB0019JJap
 1        receiving  the contribution, subject to the provisions of
 2        paragraph  (2)  of  this  subsection;  provided  that  if
 3        marital and  non-marital  property  are  commingled  into
 4        newly  acquired  property resulting in a loss of identity
 5        of the  contributing  estates,  the  commingled  property
 6        shall  be  deemed transmuted to marital property, subject
 7        to the provisions of paragraph (2) of this subsection.
 8             (2)  When   one   estate   of   property   makes   a
 9        contribution to another estate of  property,  or  when  a
10        spouse   contributes   personal   effort  to  non-marital
11        property, the contributing  estate  shall  be  reimbursed
12        from    the    estate    receiving    the    contribution
13        notwithstanding any transmutation; provided, that no such
14        reimbursement   shall   be   made   with   respect  to  a
15        contribution  which  is  not  retraceable  by  clear  and
16        convincing evidence, or was a gift, or, in the case of  a
17        contribution   of   personal   effort   of  a  spouse  to
18        non-marital property, unless the  effort  is  significant
19        and   results   in   substantial   appreciation   of  the
20        non-marital property.  Personal effort of a spouse  shall
21        be  deemed  a  contribution  by  the marital estate.  The
22        court may provide for reimbursement out  of  the  marital
23        property  to be divided or by imposing a lien against the
24        non-marital property which received the contribution.
25        (d)  In a  proceeding  for  dissolution  of  marriage  or
26    declaration of invalidity of marriage, or in a proceeding for
27    disposition  of property following dissolution of marriage by
28    a court which lacked personal jurisdiction  over  the  absent
29    spouse or lacked jurisdiction to dispose of the property, the
30    court shall assign each spouse's non-marital property to that
31    spouse.   It  also  shall divide the marital property without
32    regard to marital misconduct in just proportions  considering
33    all relevant factors, including:
34             (1)  the   contribution   of   each   party  to  the
 
                            -5-               SRS92SB0019JJap
 1        acquisition, preservation, or  increase  or  decrease  in
 2        value  of  the marital or non-marital property, including
 3        the contribution of a spouse as a  homemaker  or  to  the
 4        family unit;
 5             (2)  the dissipation by each party of the marital or
 6        non-marital property;
 7             (3)  the  value  of  the  property  assigned to each
 8        spouse;
 9             (4)  the duration of the marriage;
10             (5)  the relevant  economic  circumstances  of  each
11        spouse  when  the  division  of  property  is  to  become
12        effective,  including  the  desirability  of awarding the
13        family home, or the right to live therein for  reasonable
14        periods, to the spouse having custody of the children;
15             (6)  any obligations and rights arising from a prior
16        marriage of either party;
17             (7)  any antenuptial agreement of the parties;
18             (8)  the  age,  health,  station, occupation, amount
19        and sources of income, vocational skills,  employability,
20        estate, liabilities, and needs of each of the parties;
21             (9)  the custodial provisions for any children;
22             (10)  whether  the apportionment is in lieu of or in
23        addition to maintenance;
24             (11)  the reasonable opportunity of each spouse  for
25        future acquisition of capital assets and income; and
26             (12)  the  tax consequences of the property division
27        upon  the  respective  economic  circumstances   of   the
28        parties.
29        (e)  Each spouse has a species of common ownership in the
30    marital   property   which  vests  at  the  time  dissolution
31    proceedings are  commenced  and  continues  only  during  the
32    pendency  of  the  action.   Any  such  interest  in  marital
33    property  shall  not encumber that property so as to restrict
34    its transfer, assignment or conveyance by  the  title  holder
 
                            -6-               SRS92SB0019JJap
 1    unless such title holder is specifically enjoined from making
 2    such transfer, assignment or conveyance.
 3        (f)  In  a  proceeding  for  dissolution  of  marriage or
 4    declaration of invalidity of marriage or in a proceeding  for
 5    disposition  of property following dissolution of marriage by
 6    a court that lacked personal  jurisdiction  over  the  absent
 7    spouse or lacked jurisdiction to dispose of the property, the
 8    court,   in   determining   the  value  of  the  marital  and
 9    non-marital property for purposes of dividing  the  property,
10    shall  value  the  property  as  of the date of trial or some
11    other date as close to the date of trial as is practicable.
12        (g)  The court if necessary to protect  and  promote  the
13    best interests of the children may set aside a portion of the
14    jointly  or  separately  held  estates  of  the  parties in a
15    separate  fund  or  trust  for  the   support,   maintenance,
16    education,  and  general  welfare of any minor, dependent, or
17    incompetent child of the parties.  In making a  determination
18    under  this  subsection,  the court may consider, among other
19    things, the conviction of a party of any of the offenses  set
20    forth in Section 12-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13,
21    12-14,  12-14.1, 12-15, or 12-16 of the Criminal Code of 1961
22    if the victim is a child of one or both of the  parties,  and
23    there  is  a  need  for,  and  cost  of,  care,  healing  and
24    counseling for the child who is the victim of the crime.
25        (h)  Unless  specifically  directed by a reviewing court,
26    or upon good cause shown,  the  court  shall  not  on  remand
27    consider  any  increase  or  decrease  in  the  value  of any
28    "marital"  or  "non-marital"  property  occurring  since  the
29    assessment of such property at the original trial or hearing,
30    but shall use only that assessment made at the original trial
31    or hearing.
32        (i)  The court may  make  such  judgments  affecting  the
33    marital  property  as  may  be  just  and  may  enforce  such
34    judgments  by  ordering  a  sale  of  marital  property, with
 
                            -7-               SRS92SB0019JJap
 1    proceeds therefrom to be applied as determined by the court.
 2        (j)  After proofs have closed in the final hearing on all
 3    other issues between the parties (or in conjunction with  the
 4    final  hearing,  if  all  parties  so  stipulate)  and before
 5    judgment is entered, a party's petition for  contribution  to
 6    fees  and costs incurred in the proceeding shall be heard and
 7    decided, in accordance with the following provisions:
 8             (1)  A  petition  for  contribution,  if  not  filed
 9        before the final hearing  on  other  issues  between  the
10        parties,  shall  be filed no later than 30 days after the
11        closing of proofs in the final  hearing  or  within  such
12        other period as the court orders.
13             (2)  Any award of contribution to one party from the
14        other  party  shall be based on the criteria for division
15        of marital  property  under  this  Section  503  and,  if
16        maintenance  has  been  awarded,  on  the criteria for an
17        award of maintenance under Section 504.
18             (3)  The filing of a petition for contribution shall
19        not  be  deemed   to   constitute   a   waiver   of   the
20        attorney-client  privilege  between the petitioning party
21        and current or former counsel; and such  a  waiver  shall
22        not   constitute   a   prerequisite   to  a  hearing  for
23        contribution.   If   either   party's   presentation   on
24        contribution, however, includes evidence within the scope
25        of  the  attorney-client  privilege,  the  disclosure  or
26        disclosures  shall be narrowly construed and shall not be
27        deemed by the court to constitute a general waiver of the
28        privilege  as  to  matters  beyond  the  scope   of   the
29        presentation.
30             (4)  No  finding  on  which  a contribution award is
31        based or denied shall  be  asserted  against  counsel  or
32        former   counsel   for  purposes  of  any  hearing  under
33        subsection (c) or (e) of Section 508.
34             (5)  A contribution award  (payable  to  either  the
 
                            -8-               SRS92SB0019JJap
 1        petitioning  party or the party's counsel, or jointly, as
 2        the court determines) may be in the form of either a  set
 3        dollar  amount  or  a  percentage of fees and costs (or a
 4        portion of fees and costs) to be subsequently agreed upon
 5        by the petitioning party and counsel  or,  alternatively,
 6        thereafter determined in a hearing pursuant to subsection
 7        (c) of Section 508 or previously or thereafter determined
 8        in  an  independent  proceeding  under  subsection (e) of
 9        Section 508.
10             (6)  The changes to this Section 503  made  by  this
11        amendatory Act of 1996 apply to cases pending on or after
12        June  1,  1997,  except  as otherwise provided in Section
13        508.
14    (Source: P.A. 90-731, eff. 7-1-99; 91-445, eff. 1-1-00.)

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