State of Illinois
2011 and 2012


Introduced 1/11/2012, by Sen. John G. Mulroe


750 ILCS 5/503  from Ch. 40, par. 503

    Amends the Illinois Marriage and Dissolution of Marriage Act. In provisions concerning the dissipation of marital or non-marital property, provides that a party's claim of dissipation is subject to the following conditions: a notice of intent to claim dissipation shall be given no later than 60 days before trial or 30 days after discovery closes, whichever is later; the notice shall contain, at a minimum, the time period during which the marriage began undergoing an irretrievable breakdown, an identification of the property dissipated, and the time during which the dissipation occurred; the notice shall be filed and served pursuant to applicable rules; and no dissipation shall be deemed to have occurred prior to 5 years before the filing of the petition for dissolution of marriage or 3 years after the party claiming dissipation knew or should have known of the dissipation.

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SB2569LRB097 13260 AJO 57769 b

1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Marriage and Dissolution of
5Marriage 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 all
9property acquired by either spouse subsequent to the marriage,
10except the following, which is known as "non-marital property":
11        (1) property acquired by gift, legacy or descent;
12        (2) property acquired in exchange for property
13    acquired before the marriage or in exchange for property
14    acquired by gift, legacy or descent;
15        (3) property acquired by a spouse after a judgment of
16    legal separation;
17        (4) property excluded by valid agreement of the
18    parties;
19        (5) any judgment or property obtained by judgment
20    awarded to a spouse from the other spouse;
21        (6) property acquired before the marriage;
22        (7) the increase in value of property acquired by a
23    method listed in paragraphs (1) through (6) of this



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1    subsection, irrespective of whether the increase results
2    from a contribution of marital property, non-marital
3    property, the personal effort of a spouse, or otherwise,
4    subject to the right of reimbursement provided in
5    subsection (c) of this Section; and
6        (8) income from property acquired by a method listed in
7    paragraphs (1) through (7) of this subsection if the income
8    is not attributable to the personal effort of a spouse.
9    (b)(1) For purposes of distribution of property pursuant to
10this Section, all property acquired by either spouse after the
11marriage and before a judgment of dissolution of marriage or
12declaration of invalidity of marriage, including non-marital
13property transferred into some form of co-ownership between the
14spouses, is presumed to be marital property, regardless of
15whether title is held individually or by the spouses in some
16form of co-ownership such as joint tenancy, tenancy in common,
17tenancy by the entirety, or community property. The presumption
18of marital property is overcome by a showing that the property
19was acquired by a method listed in subsection (a) of this
21    (2) For purposes of distribution of property pursuant to
22this Section, all pension benefits (including pension benefits
23under the Illinois Pension Code) acquired by either spouse
24after the marriage and before a judgment of dissolution of
25marriage or declaration of invalidity of the marriage are
26presumed to be marital property, regardless of which spouse



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1participates in the pension plan. The presumption that these
2pension benefits are marital property is overcome by a showing
3that the pension benefits were acquired by a method listed in
4subsection (a) of this Section. The right to a division of
5pension benefits in just proportions under this Section is
6enforceable under Section 1-119 of the Illinois Pension Code.
7    The value of pension benefits in a retirement system
8subject to the Illinois Pension Code shall be determined in
9accordance with the valuation procedures established by the
10retirement system.
11    The recognition of pension benefits as marital property and
12the division of those benefits pursuant to a Qualified Illinois
13Domestic Relations Order shall not be deemed to be a
14diminishment, alienation, or impairment of those benefits. The
15division of pension benefits is an allocation of property in
16which each spouse has a species of common ownership.
17    (3) For purposes of distribution of property under this
18Section, all stock options granted to either spouse after the
19marriage and before a judgment of dissolution of marriage or
20declaration of invalidity of marriage, whether vested or
21non-vested or whether their value is ascertainable, are
22presumed to be marital property. This presumption of marital
23property is overcome by a showing that the stock options were
24acquired by a method listed in subsection (a) of this Section.
25The court shall allocate stock options between the parties at
26the time of the judgment of dissolution of marriage or



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1declaration of invalidity of marriage recognizing that the
2value of the stock options may not be then determinable and
3that the actual division of the options may not occur until a
4future date. In making the allocation between the parties, the
5court shall consider, in addition to the factors set forth in
6subsection (d) of this Section, the following:
7        (i) All circumstances underlying the grant of the stock
8    option including but not limited to whether the grant was
9    for past, present, or future efforts, or any combination
10    thereof.
11        (ii) The length of time from the grant of the option to
12    the time the option is exercisable.
13    (b-5) As to any policy of life insurance insuring the life
14of either spouse, or any interest in such policy, that
15constitutes marital property, whether whole life, term life,
16group term life, universal life, or other form of life
17insurance policy, and whether or not the value is
18ascertainable, the court shall allocate ownership, death
19benefits or the right to assign death benefits, and the
20obligation for premium payments, if any, equitably between the
21parties at the time of the judgment for dissolution or
22declaration of invalidity of marriage.
23    (c) Commingled marital and non-marital property shall be
24treated in the following manner, unless otherwise agreed by the
26        (1) When marital and non-marital property are



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1    commingled by contributing one estate of property into
2    another resulting in a loss of identity of the contributed
3    property, the classification of the contributed property
4    is transmuted to the estate receiving the contribution,
5    subject to the provisions of paragraph (2) of this
6    subsection; provided that if marital and non-marital
7    property are commingled into newly acquired property
8    resulting in a loss of identity of the contributing
9    estates, the commingled property shall be deemed
10    transmuted to marital property, subject to the provisions
11    of paragraph (2) of this subsection.
12        (2) When one estate of property makes a contribution to
13    another estate of property, or when a spouse contributes
14    personal effort to non-marital property, the contributing
15    estate shall be reimbursed from the estate receiving the
16    contribution notwithstanding any transmutation; provided,
17    that no such reimbursement shall be made with respect to a
18    contribution which is not retraceable by clear and
19    convincing evidence, or was a gift, or, in the case of a
20    contribution of personal effort of a spouse to non-marital
21    property, unless the effort is significant and results in
22    substantial appreciation of the non-marital property.
23    Personal effort of a spouse shall be deemed a contribution
24    by the marital estate. The court may provide for
25    reimbursement out of the marital property to be divided or
26    by imposing a lien against the non-marital property which



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1    received the contribution.
2    (d) In a proceeding for dissolution of marriage or
3declaration of invalidity of marriage, or in a proceeding for
4disposition of property following dissolution of marriage by a
5court which lacked personal jurisdiction over the absent spouse
6or lacked jurisdiction to dispose of the property, the court
7shall assign each spouse's non-marital property to that spouse.
8It also shall divide the marital property without regard to
9marital misconduct in just proportions considering all
10relevant factors, including:
11        (1) the contribution of each party to the acquisition,
12    preservation, or increase or decrease in value of the
13    marital or non-marital property, including (i) any such
14    decrease attributable to a payment deemed to have been an
15    advance from the parties' marital estate under subsection
16    (c-1)(2) of Section 501 and (ii) the contribution of a
17    spouse as a homemaker or to the family unit;
18        (2) the dissipation by each party of the marital or
19    non-marital property, provided that a party's claim of
20    dissipation is subject to the following conditions: ;
21            (i) a notice of intent to claim dissipation shall
22        be given no later than 60 days before trial or 30 days
23        after discovery closes, whichever is later;
24            (ii) the notice of intent to claim dissipation
25        shall contain, at a minimum, a date or period of time
26        during which the marriage began undergoing an



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1        irretrievable breakdown, an identification of the
2        property dissipated, and a date or period of time
3        during which the dissipation occurred;
4            (iii) the notice of intent to claim dissipation
5        shall be filed with the clerk of the court and be
6        served pursuant to applicable rules;
7            (iv) no dissipation shall be deemed to have
8        occurred prior to 5 years before the filing of the
9        petition for dissolution of marriage, or 3 years after
10        the party claiming dissipation knew or should have
11        known of the dissipation;
12        (3) the value of the property assigned to each spouse;
13        (4) the duration of the marriage;
14        (5) the relevant economic circumstances of each spouse
15    when the division of property is to become effective,
16    including the desirability of awarding the family home, or
17    the right to live therein for reasonable periods, to the
18    spouse having custody of the children;
19        (6) any obligations and rights arising from a prior
20    marriage of either party;
21        (7) any antenuptial agreement of the parties;
22        (8) the age, health, station, occupation, amount and
23    sources of income, vocational skills, employability,
24    estate, liabilities, and needs of each of the parties;
25        (9) the custodial provisions for any children;
26        (10) whether the apportionment is in lieu of or in



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1    addition to maintenance;
2        (11) the reasonable opportunity of each spouse for
3    future acquisition of capital assets and income; and
4        (12) the tax consequences of the property division upon
5    the respective economic circumstances of the parties.
6    (e) Each spouse has a species of common ownership in the
7marital property which vests at the time dissolution
8proceedings are commenced and continues only during the
9pendency of the action. Any such interest in marital property
10shall not encumber that property so as to restrict its
11transfer, assignment or conveyance by the title holder unless
12such title holder is specifically enjoined from making such
13transfer, assignment or conveyance.
14    (f) In a proceeding for dissolution of marriage or
15declaration of invalidity of marriage or in a proceeding for
16disposition of property following dissolution of marriage by a
17court that lacked personal jurisdiction over the absent spouse
18or lacked jurisdiction to dispose of the property, the court,
19in determining the value of the marital and non-marital
20property for purposes of dividing the property, shall value the
21property as of the date of trial or some other date as close to
22the date of trial as is practicable.
23    (g) The court if necessary to protect and promote the best
24interests of the children may set aside a portion of the
25jointly or separately held estates of the parties in a separate
26fund or trust for the support, maintenance, education, physical



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1and mental health, and general welfare of any minor, dependent,
2or incompetent child of the parties. In making a determination
3under this subsection, the court may consider, among other
4things, the conviction of a party of any of the offenses set
5forth in Section 11-1.20, 11-1.30, 11-1.40, 11-1.50, 11-1.60,
612-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14, 12-14.1,
712-15, or 12-16, or Section 12-3.05 except for subdivision
8(a)(4) or (g)(1), of the Criminal Code of 1961 if the victim is
9a child of one or both of the parties, and there is a need for,
10and cost of, care, healing and counseling for the child who is
11the victim of the crime.
12    (h) Unless specifically directed by a reviewing court, or
13upon good cause shown, the court shall not on remand consider
14any increase or decrease in the value of any "marital" or
15"non-marital" property occurring since the assessment of such
16property at the original trial or hearing, but shall use only
17that assessment made at the original trial or hearing.
18    (i) The court may make such judgments affecting the marital
19property as may be just and may enforce such judgments by
20ordering a sale of marital property, with proceeds therefrom to
21be applied as determined by the court.
22    (j) After proofs have closed in the final hearing on all
23other issues between the parties (or in conjunction with the
24final hearing, if all parties so stipulate) and before judgment
25is entered, a party's petition for contribution to fees and
26costs incurred in the proceeding shall be heard and decided, in



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1accordance with the following provisions:
2        (1) A petition for contribution, if not filed before
3    the final hearing on other issues between the parties,
4    shall be filed no later than 30 days after the closing of
5    proofs in the final hearing or within such other period as
6    the court orders.
7        (2) Any award of contribution to one party from the
8    other party shall be based on the criteria for division of
9    marital property under this Section 503 and, if maintenance
10    has been awarded, on the criteria for an award of
11    maintenance under Section 504.
12        (3) The filing of a petition for contribution shall not
13    be deemed to constitute a waiver of the attorney-client
14    privilege between the petitioning party and current or
15    former counsel; and such a waiver shall not constitute a
16    prerequisite to a hearing for contribution. If either
17    party's presentation on contribution, however, includes
18    evidence within the scope of the attorney-client
19    privilege, the disclosure or disclosures shall be narrowly
20    construed and shall not be deemed by the court to
21    constitute a general waiver of the privilege as to matters
22    beyond the scope of the presentation.
23        (4) No finding on which a contribution award is based
24    or denied shall be asserted against counsel or former
25    counsel for purposes of any hearing under subsection (c) or
26    (e) of Section 508.



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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 508.
14(Source: P.A. 95-374, eff. 1-1-08; 96-583, eff. 1-1-10;
1596-1551, Article 1, Section 985, eff. 7-1-11; 96-1551, Article
162, Section 1100, eff. 7-1-11; 97-608, eff. 1-1-12; revised