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Full Text of SB0610  100th General Assembly

SB0610 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0610

 

Introduced 1/24/2017, by Sen. Chuck Weaver

 

SYNOPSIS AS INTRODUCED:
 
750 ILCS 5/503  from Ch. 40, par. 503

    Amends the Illinois Marriage and Dissolution of Marriage Act. Provides that as to any policy of life insurance insuring the life of either spouse, or any interest in such policy, that constitutes non-marital property, or constitutes marital property but was not specifically allocated between the parties as provided in the Act, a beneficiary designation made by or on behalf of the decedent prior to the entry of the judgment for dissolution or declaration of invalidity of marriage that provides for the payment or transfer at death of any of the proceeds of the policy to or for the benefit of the decedent's former spouse is void as of the time of the judgment for dissolution or declaration of invalidity of marriage and the policy proceeds shall pass as if the decedent's former spouse predeceased the decedent.


LRB100 00024 HEP 10025 b

 

 

A BILL FOR

 

SB0610LRB100 00024 HEP 10025 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    (Text of Section before amendment by P.A. 99-763)
8    Sec. 503. Disposition of property and debts.
9    (a) For purposes of this Act, "marital property" means all
10property, including debts and other obligations, acquired by
11either spouse subsequent to the marriage, except the following,
12which is known as "non-marital property":
13        (1) property acquired by gift, legacy or descent or
14    property acquired in exchange for such property;
15        (2) property acquired in exchange for property
16    acquired before the marriage;
17        (3) property acquired by a spouse after a judgment of
18    legal separation;
19        (4) property excluded by valid agreement of the
20    parties, including a premarital agreement or a postnuptial
21    agreement;
22        (5) any judgment or property obtained by judgment
23    awarded to a spouse from the other spouse except, however,

 

 

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1    when a spouse is required to sue the other spouse in order
2    to obtain insurance coverage or otherwise recover from a
3    third party and the recovery is directly related to amounts
4    advanced by the marital estate, the judgment shall be
5    considered marital property;
6        (6) property acquired before the marriage, except as it
7    relates to retirement plans that may have both marital and
8    non-marital characteristics;
9        (6.5) all property acquired by a spouse by the sole use
10    of non-marital property as collateral for a loan that then
11    is used to acquire property during the marriage; to the
12    extent that the marital estate repays any portion of the
13    loan, it shall be considered a contribution from the
14    marital estate to the non-marital estate subject to
15    reimbursement;
16        (7) the increase in value of non-marital property,
17    irrespective of whether the increase results from a
18    contribution of marital property, non-marital property,
19    the personal effort of a spouse, or otherwise, subject to
20    the right of reimbursement provided in subsection (c) of
21    this Section; and
22        (8) income from property acquired by a method listed in
23    paragraphs (1) through (7) of this subsection if the income
24    is not attributable to the personal effort of a spouse.
25    Property acquired prior to a marriage that would otherwise
26be non-marital property shall not be deemed to be marital

 

 

SB0610- 3 -LRB100 00024 HEP 10025 b

1property solely because the property was acquired in
2contemplation of marriage.
3    The court shall make specific factual findings as to its
4classification of assets as marital or non-marital property,
5values, and other factual findings supporting its property
6award.
7    (b)(1) For purposes of distribution of property, all
8property acquired by either spouse after the marriage and
9before a judgment of dissolution of marriage or declaration of
10invalidity of marriage is presumed marital property. This
11presumption includes non-marital property transferred into
12some form of co-ownership between the spouses, regardless of
13whether title is held individually or by the spouses in some
14form of co-ownership such as joint tenancy, tenancy in common,
15tenancy by the entirety, or community property. A spouse may
16overcome the presumption of marital property by showing through
17clear and convincing evidence that the property was acquired by
18a method listed in subsection (a) of this Section or was done
19for estate or tax planning purposes or for other reasons that
20establish that the transfer was not intended to be a gift.
21    (2) For purposes of distribution of property pursuant to
22this Section, all pension benefits (including pension benefits
23under the Illinois Pension Code, defined benefit plans, defined
24contribution plans and accounts, individual retirement
25accounts, and non-qualified plans) acquired by or participated
26in by either spouse after the marriage and before a judgment of

 

 

SB0610- 4 -LRB100 00024 HEP 10025 b

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

 

 

SB0610- 5 -LRB100 00024 HEP 10025 b

1marital property is overcome by a showing that the stock
2options or restricted stock or similar form of benefit were
3acquired by a method listed in subsection (a) of this Section.
4The court shall allocate stock options and restricted stock or
5similar form of benefit between the parties at the time of the
6judgment of dissolution of marriage or declaration of
7invalidity of marriage recognizing that the value of the stock
8options and restricted stock or similar form of benefit may not
9be then determinable and that the actual division of the
10options may not occur until a future date. In making the
11allocation between the parties, the court shall consider, in
12addition to the factors set forth in subsection (d) of this
13Section, the following:
14        (i) All circumstances underlying the grant of the stock
15    option and restricted stock or similar form of benefit
16    including but not limited to the vesting schedule, whether
17    the grant was for past, present, or future efforts, whether
18    the grant is designed to promote future performance or
19    employment, or any combination thereof.
20        (ii) The length of time from the grant of the option to
21    the time the option is exercisable.
22    (b-5)(1) As to any existing policy of life insurance
23insuring the life of either spouse, or any interest in such
24policy, that constitutes marital property, whether whole life,
25term life, group term life, universal life, or other form of
26life insurance policy, and whether or not the value is

 

 

SB0610- 6 -LRB100 00024 HEP 10025 b

1ascertainable, the court shall allocate ownership, death
2benefits or the right to assign death benefits, and the
3obligation for premium payments, if any, equitably between the
4parties at the time of the judgment for dissolution or
5declaration of invalidity of marriage.
6    (2) As to any existing policy of life insurance insuring
7the life of either spouse, or any interest in such policy, that
8constitutes non-marital property, or constitutes marital
9property but was not specifically allocated between the parties
10as provided in paragraph (1) of this subsection, a beneficiary
11designation made by or on behalf of the decedent prior to the
12entry of the judgment for dissolution or declaration of
13invalidity of marriage that provides for the payment or
14transfer at death of any of the proceeds of the policy to or
15for the benefit of the decedent's former spouse is void as of
16the time of the judgment for dissolution or declaration of
17invalidity of marriage and the policy proceeds shall pass as if
18the decedent's former spouse predeceased the decedent.
19    (c) Commingled marital and non-marital property shall be
20treated in the following manner, unless otherwise agreed by the
21spouses:
22        (1)(A) If marital and non-marital property are
23    commingled by one estate being contributed into the other,
24    the following shall apply:
25            (i) If the contributed property loses its
26        identity, the contributed property transmutes to the

 

 

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1        estate receiving the property, subject to the
2        provisions of paragraph (2) of this subsection (c).
3            (ii) If the contributed property retains its
4        identity, it does not transmute and remains property of
5        the contributing estate.
6        (B) If marital and non-marital property are commingled
7    into newly acquired property resulting in a loss of
8    identity of the contributing estates, the commingled
9    property shall be deemed transmuted to marital property,
10    subject to the provisions of paragraph (2) of this
11    subsection (c).
12        (2)(A) When one estate of property makes a contribution
13    to another estate of property, the contributing estate
14    shall be reimbursed from the estate receiving the
15    contribution notwithstanding any transmutation. No such
16    reimbursement shall be made with respect to a contribution
17    that is not traceable by clear and convincing evidence or
18    that was a gift. The court may provide for reimbursement
19    out of the marital property to be divided or by imposing a
20    lien against the non-marital property that received the
21    contribution.
22        (B) When a spouse contributes personal effort to
23    non-marital property, it shall be deemed a contribution
24    from the marital estate, which shall receive reimbursement
25    for the efforts if the efforts are significant and result
26    in substantial appreciation to the non-marital property

 

 

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1    except that if the marital estate reasonably has been
2    compensated for his or her efforts, it shall not be deemed
3    a contribution to the marital estate and there shall be no
4    reimbursement to the marital estate. The court may provide
5    for reimbursement out of the marital property to be divided
6    or by imposing a lien against the non-marital property
7    which received the contribution.
8    (d) In a proceeding for dissolution of marriage or
9declaration of invalidity of marriage, or in a proceeding for
10disposition of property following dissolution of marriage by a
11court that lacked personal jurisdiction over the absent spouse
12or lacked jurisdiction to dispose of the property, the court
13shall assign each spouse's non-marital property to that spouse.
14It also shall divide the marital property without regard to
15marital misconduct in just proportions considering all
16relevant factors, including:
17        (1) each party's contribution to the acquisition,
18    preservation, or increase or decrease in value of the
19    marital or non-marital property, including (i) any
20    decrease attributable to an advance from the parties'
21    marital estate under subsection (c-1)(2) of Section 501;
22    (ii) the contribution of a spouse as a homemaker or to the
23    family unit; and (iii) whether the contribution is after
24    the commencement of a proceeding for dissolution of
25    marriage or declaration of invalidity of marriage;
26        (2) the dissipation by each party of the marital

 

 

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1    property, provided that a party's claim of dissipation is
2    subject to the following conditions:
3            (i) a notice of intent to claim dissipation shall
4        be given no later than 60 days before trial or 30 days
5        after discovery closes, whichever is later;
6            (ii) the notice of intent to claim dissipation
7        shall contain, at a minimum, a date or period of time
8        during which the marriage began undergoing an
9        irretrievable breakdown, an identification of the
10        property dissipated, and a date or period of time
11        during which the dissipation occurred;
12            (iii) a certificate or service of the notice of
13        intent to claim dissipation shall be filed with the
14        clerk of the court and be served pursuant to applicable
15        rules;
16            (iv) no dissipation shall be deemed to have
17        occurred prior to 3 years after the party claiming
18        dissipation knew or should have known of the
19        dissipation, but in no event prior to 5 years before
20        the filing of the petition for dissolution of marriage;
21        (3) the value of the property assigned to each spouse;
22        (4) the duration of the marriage;
23        (5) the relevant economic circumstances of each spouse
24    when the division of property is to become effective,
25    including the desirability of awarding the family home, or
26    the right to live therein for reasonable periods, to the

 

 

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1    spouse having the primary residence of the children;
2        (6) any obligations and rights arising from a prior
3    marriage of either party;
4        (7) any prenuptial or postnuptial agreement of the
5    parties;
6        (8) the age, health, station, occupation, amount and
7    sources of income, vocational skills, employability,
8    estate, liabilities, and needs of each of the parties;
9        (9) the custodial provisions for any children;
10        (10) whether the apportionment is in lieu of or in
11    addition to maintenance;
12        (11) the reasonable opportunity of each spouse for
13    future acquisition of capital assets and income; and
14        (12) the tax consequences of the property division upon
15    the respective economic circumstances of the parties.
16    (e) Each spouse has a species of common ownership in the
17marital property which vests at the time dissolution
18proceedings are commenced and continues only during the
19pendency of the action. Any such interest in marital property
20shall not encumber that property so as to restrict its
21transfer, assignment or conveyance by the title holder unless
22such title holder is specifically enjoined from making such
23transfer, assignment or conveyance.
24    (f) In a proceeding for dissolution of marriage or
25declaration of invalidity of marriage or in a proceeding for
26disposition of property following dissolution of marriage by a

 

 

SB0610- 11 -LRB100 00024 HEP 10025 b

1court that lacked personal jurisdiction over the absent spouse
2or lacked jurisdiction to dispose of the property, the court,
3in determining the value of the marital and non-marital
4property for purposes of dividing the property, has the
5discretion to use the date of the trial or such other date as
6agreed upon by the parties, or ordered by the court within its
7discretion, for purposes of determining the value of assets or
8property.
9    (g) The court if necessary to protect and promote the best
10interests of the children may set aside a portion of the
11jointly or separately held estates of the parties in a separate
12fund or trust for the support, maintenance, education, physical
13and mental health, and general welfare of any minor, dependent,
14or incompetent child of the parties. In making a determination
15under this subsection, the court may consider, among other
16things, the conviction of a party of any of the offenses set
17forth in Section 11-1.20, 11-1.30, 11-1.40, 11-1.50, 11-1.60,
1812-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14, 12-14.1,
1912-15, or 12-16, or Section 12-3.05 except for subdivision
20(a)(4) or (g)(1), of the Criminal Code of 1961 or the Criminal
21Code of 2012 if the victim is a child of one or both of the
22parties, and there is a need for, and cost of, care, healing
23and counseling for the child who is the victim of the crime.
24    (h) Unless specifically directed by a reviewing court, or
25upon good cause shown, the court shall not on remand consider
26any increase or decrease in the value of any "marital" or

 

 

SB0610- 12 -LRB100 00024 HEP 10025 b

1"non-marital" property occurring since the assessment of such
2property at the original trial or hearing, but shall use only
3that assessment made at the original trial or hearing.
4    (i) The court may make such judgments affecting the marital
5property as may be just and may enforce such judgments by
6ordering a sale of marital property, with proceeds therefrom to
7be applied as determined by the court.
8    (j) After proofs have closed in the final hearing on all
9other issues between the parties (or in conjunction with the
10final hearing, if all parties so stipulate) and before judgment
11is entered, a party's petition for contribution to fees and
12costs incurred in the proceeding shall be heard and decided, in
13accordance with the following provisions:
14        (1) A petition for contribution, if not filed before
15    the final hearing on other issues between the parties,
16    shall be filed no later than 14 days after the closing of
17    proofs in the final hearing or within such other period as
18    the court orders.
19        (2) Any award of contribution to one party from the
20    other party shall be based on the criteria for division of
21    marital property under this Section 503 and, if maintenance
22    has been awarded, on the criteria for an award of
23    maintenance under Section 504.
24        (3) The filing of a petition for contribution shall not
25    be deemed to constitute a waiver of the attorney-client
26    privilege between the petitioning party and current or

 

 

SB0610- 13 -LRB100 00024 HEP 10025 b

1    former counsel; and such a waiver shall not constitute a
2    prerequisite to a hearing for contribution. If either
3    party's presentation on contribution, however, includes
4    evidence within the scope of the attorney-client
5    privilege, the disclosure or disclosures shall be narrowly
6    construed and shall not be deemed by the court to
7    constitute a general waiver of the privilege as to matters
8    beyond the scope of the presentation.
9        (4) No finding on which a contribution award is based
10    or denied shall be asserted against counsel or former
11    counsel for purposes of any hearing under subsection (c) or
12    (e) of Section 508.
13        (5) A contribution award (payable to either the
14    petitioning party or the party's counsel, or jointly, as
15    the court determines) may be in the form of either a set
16    dollar amount or a percentage of fees and costs (or a
17    portion of fees and costs) to be subsequently agreed upon
18    by the petitioning party and counsel or, alternatively,
19    thereafter determined in a hearing pursuant to subsection
20    (c) of Section 508 or previously or thereafter determined
21    in an independent proceeding under subsection (e) of
22    Section 508.
23        (6) The changes to this Section 503 made by this
24    amendatory Act of 1996 apply to cases pending on or after
25    June 1, 1997, except as otherwise provided in Section 508.
26    (k) In determining the value of assets or property under

 

 

SB0610- 14 -LRB100 00024 HEP 10025 b

1this Section, the court shall employ a fair market value
2standard. The date of valuation for the purposes of division of
3assets shall be the date of trial or such other date as agreed
4by the parties or ordered by the court, within its discretion.
5If the court grants a petition brought under Section 2-1401 of
6the Code of Civil Procedure, then the court has the discretion
7to use the date of the trial or such other date as agreed upon
8by the parties, or ordered by the court within its discretion,
9for purposes of determining the value of assets or property.
10    (l) The court may seek the advice of financial experts or
11other professionals, whether or not employed by the court on a
12regular basis. The advice given shall be in writing and made
13available by the court to counsel. Counsel may examine as a
14witness any professional consulted by the court designated as
15the court's witness. Professional personnel consulted by the
16court are subject to subpoena for the purposes of discovery,
17trial, or both. The court shall allocate the costs and fees of
18those professional personnel between the parties based upon the
19financial ability of each party and any other criteria the
20court considers appropriate, and the allocation is subject to
21reallocation under subsection (a) of Section 508. Upon the
22request of any party or upon the court's own motion, the court
23may conduct a hearing as to the reasonableness of those fees
24and costs.
25    (m) The changes made to this Section by Public Act 97-941
26apply only to petitions for dissolution of marriage filed on or

 

 

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1after January 1, 2013 (the effective date of Public Act
297-941).
3(Source: P.A. 99-78, eff. 7-20-15; 99-90, eff. 1-1-16.)
 
4    (Text of Section after amendment by P.A. 99-763)
5    Sec. 503. Disposition of property and debts.
6    (a) For purposes of this Act, "marital property" means all
7property, including debts and other obligations, acquired by
8either spouse subsequent to the marriage, except the following,
9which is known as "non-marital property":
10        (1) property acquired by gift, legacy or descent or
11    property acquired in exchange for such property;
12        (2) property acquired in exchange for property
13    acquired before the marriage;
14        (3) property acquired by a spouse after a judgment of
15    legal separation;
16        (4) property excluded by valid agreement of the
17    parties, including a premarital agreement or a postnuptial
18    agreement;
19        (5) any judgment or property obtained by judgment
20    awarded to a spouse from the other spouse except, however,
21    when a spouse is required to sue the other spouse in order
22    to obtain insurance coverage or otherwise recover from a
23    third party and the recovery is directly related to amounts
24    advanced by the marital estate, the judgment shall be
25    considered marital property;

 

 

SB0610- 16 -LRB100 00024 HEP 10025 b

1        (6) property acquired before the marriage, except as it
2    relates to retirement plans that may have both marital and
3    non-marital characteristics;
4        (6.5) all property acquired by a spouse by the sole use
5    of non-marital property as collateral for a loan that then
6    is used to acquire property during the marriage; to the
7    extent that the marital estate repays any portion of the
8    loan, it shall be considered a contribution from the
9    marital estate to the non-marital estate subject to
10    reimbursement;
11        (7) the increase in value of non-marital property,
12    irrespective of whether the increase results from a
13    contribution of marital property, non-marital property,
14    the personal effort of a spouse, or otherwise, subject to
15    the right of reimbursement provided in subsection (c) of
16    this Section; and
17        (8) income from property acquired by a method listed in
18    paragraphs (1) through (7) of this subsection if the income
19    is not attributable to the personal effort of a spouse.
20    Property acquired prior to a marriage that would otherwise
21be non-marital property shall not be deemed to be marital
22property solely because the property was acquired in
23contemplation of marriage.
24    The court shall make specific factual findings as to its
25classification of assets as marital or non-marital property,
26values, and other factual findings supporting its property

 

 

SB0610- 17 -LRB100 00024 HEP 10025 b

1award.
2    (b)(1) For purposes of distribution of property, all
3property acquired by either spouse after the marriage and
4before a judgment of dissolution of marriage or declaration of
5invalidity of marriage is presumed marital property. This
6presumption includes non-marital property transferred into
7some form of co-ownership between the spouses, regardless of
8whether title is held individually or by the spouses in some
9form of co-ownership such as joint tenancy, tenancy in common,
10tenancy by the entirety, or community property. The presumption
11of marital property is overcome by showing through clear and
12convincing evidence that the property was acquired by a method
13listed in subsection (a) of this Section or was done for estate
14or tax planning purposes or for other reasons that establish
15that a transfer between spouses was not intended to be a gift.
16    (2) For purposes of distribution of property pursuant to
17this Section, all pension benefits (including pension benefits
18under the Illinois Pension Code, defined benefit plans, defined
19contribution plans and accounts, individual retirement
20accounts, and non-qualified plans) acquired by or participated
21in by either spouse after the marriage and before a judgment of
22dissolution of marriage or legal separation or declaration of
23invalidity of the marriage are presumed to be marital property.
24A spouse may overcome the presumption that these pension
25benefits are marital property by showing through clear and
26convincing evidence that the pension benefits were acquired by

 

 

SB0610- 18 -LRB100 00024 HEP 10025 b

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

 

 

SB0610- 19 -LRB100 00024 HEP 10025 b

1judgment of dissolution of marriage or declaration of
2invalidity of marriage recognizing that the value of the stock
3options and restricted stock or similar form of benefit may not
4be then determinable and that the actual division of the
5options may not occur until a future date. In making the
6allocation between the parties, the court shall consider, in
7addition to the factors set forth in subsection (d) of this
8Section, the following:
9        (i) All circumstances underlying the grant of the stock
10    option and restricted stock or similar form of benefit
11    including but not limited to the vesting schedule, whether
12    the grant was for past, present, or future efforts, whether
13    the grant is designed to promote future performance or
14    employment, or any combination thereof.
15        (ii) The length of time from the grant of the option to
16    the time the option is exercisable.
17    (b-5)(1) As to any existing policy of life insurance
18insuring the life of either spouse, or any interest in such
19policy, that constitutes marital property, whether whole life,
20term life, group term life, universal life, or other form of
21life insurance policy, and whether or not the value is
22ascertainable, the court shall allocate ownership, death
23benefits or the right to assign death benefits, and the
24obligation for premium payments, if any, equitably between the
25parties at the time of the judgment for dissolution or
26declaration of invalidity of marriage.

 

 

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1    (2) As to any existing policy of life insurance insuring
2the life of either spouse, or any interest in such policy, that
3constitutes non-marital property, or constitutes marital
4property but was not specifically allocated between the parties
5as provided in paragraph (1) of this subsection, a beneficiary
6designation made by or on behalf of the decedent prior to the
7entry of the judgment for dissolution or declaration of
8invalidity of marriage that provides for the payment or
9transfer at death of any of the proceeds of the policy to or
10for the benefit of the decedent's former spouse is void as of
11the time of the judgment for dissolution or declaration of
12invalidity of marriage and the policy proceeds shall pass as if
13the decedent's former spouse predeceased the decedent.
14    (c) Commingled marital and non-marital property shall be
15treated in the following manner, unless otherwise agreed by the
16spouses:
17        (1)(A) If marital and non-marital property are
18    commingled by one estate being contributed into the other,
19    the following shall apply:
20            (i) If the contributed property loses its
21        identity, the contributed property transmutes to the
22        estate receiving the property, subject to the
23        provisions of paragraph (2) of this subsection (c).
24            (ii) If the contributed property retains its
25        identity, it does not transmute and remains property of
26        the contributing estate.

 

 

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1        (B) If marital and non-marital property are commingled
2    into newly acquired property resulting in a loss of
3    identity of the contributing estates, the commingled
4    property shall be deemed transmuted to marital property,
5    subject to the provisions of paragraph (2) of this
6    subsection (c).
7        (2)(A) When one estate of property makes a contribution
8    to another estate of property, the contributing estate
9    shall be reimbursed from the estate receiving the
10    contribution notwithstanding any transmutation. No such
11    reimbursement shall be made with respect to a contribution
12    that is not traceable by clear and convincing evidence or
13    that was a gift. The court may provide for reimbursement
14    out of the marital property to be divided or by imposing a
15    lien against the non-marital property that received the
16    contribution.
17        (B) When a spouse contributes personal effort to
18    non-marital property, it shall be deemed a contribution
19    from the marital estate, which shall receive reimbursement
20    for the efforts if the efforts are significant and result
21    in substantial appreciation to the non-marital property
22    except that if the marital estate reasonably has been
23    compensated for his or her efforts, it shall not be deemed
24    a contribution to the marital estate and there shall be no
25    reimbursement to the marital estate. The court may provide
26    for reimbursement out of the marital property to be divided

 

 

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

 

 

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1            (ii) the notice of intent to claim dissipation
2        shall contain, at a minimum, a date or period of time
3        during which the marriage began undergoing an
4        irretrievable breakdown, an identification of the
5        property dissipated, and a date or period of time
6        during which the dissipation occurred;
7            (iii) a certificate or service of the notice of
8        intent to claim dissipation shall be filed with the
9        clerk of the court and be served pursuant to applicable
10        rules;
11            (iv) no dissipation shall be deemed to have
12        occurred prior to 3 years after the party claiming
13        dissipation knew or should have known of the
14        dissipation, but in no event prior to 5 years before
15        the filing of the petition for dissolution of marriage;
16        (3) the value of the property assigned to each spouse;
17        (4) the duration of the marriage;
18        (5) the relevant economic circumstances of each spouse
19    when the division of property is to become effective,
20    including the desirability of awarding the family home, or
21    the right to live therein for reasonable periods, to the
22    spouse having the primary residence of the children;
23        (6) any obligations and rights arising from a prior
24    marriage of either party;
25        (7) any prenuptial or postnuptial agreement of the
26    parties;

 

 

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1        (8) the age, health, station, occupation, amount and
2    sources of income, vocational skills, employability,
3    estate, liabilities, and needs of each of the parties;
4        (9) the custodial provisions for any children;
5        (10) whether the apportionment is in lieu of or in
6    addition to maintenance;
7        (11) the reasonable opportunity of each spouse for
8    future acquisition of capital assets and income; and
9        (12) the tax consequences of the property division upon
10    the respective economic circumstances of the parties.
11    (e) Each spouse has a species of common ownership in the
12marital property which vests at the time dissolution
13proceedings are commenced and continues only during the
14pendency of the action. Any such interest in marital property
15shall not encumber that property so as to restrict its
16transfer, assignment or conveyance by the title holder unless
17such title holder is specifically enjoined from making such
18transfer, assignment or conveyance.
19    (f) In a proceeding for dissolution of marriage or
20declaration of invalidity of marriage or in a proceeding for
21disposition of property following dissolution of marriage by a
22court that lacked personal jurisdiction over the absent spouse
23or lacked jurisdiction to dispose of the property, the court,
24in determining the value of the marital and non-marital
25property for purposes of dividing the property, has the
26discretion to use the date of the trial or such other date as

 

 

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1agreed upon by the parties, or ordered by the court within its
2discretion, for purposes of determining the value of assets or
3property.
4    (g) The court if necessary to protect and promote the best
5interests of the children may set aside a portion of the
6jointly or separately held estates of the parties in a separate
7fund or trust for the support, maintenance, education, physical
8and mental health, and general welfare of any minor, dependent,
9or incompetent child of the parties. In making a determination
10under this subsection, the court may consider, among other
11things, the conviction of a party of any of the offenses set
12forth in Section 11-1.20, 11-1.30, 11-1.40, 11-1.50, 11-1.60,
1312-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14, 12-14.1,
1412-15, or 12-16, or Section 12-3.05 except for subdivision
15(a)(4) or (g)(1), of the Criminal Code of 1961 or the Criminal
16Code of 2012 if the victim is a child of one or both of the
17parties, and there is a need for, and cost of, care, healing
18and counseling for the child who is the victim of the crime.
19    (h) Unless specifically directed by a reviewing court, or
20upon good cause shown, the court shall not on remand consider
21any increase or decrease in the value of any "marital" or
22"non-marital" property occurring since the assessment of such
23property at the original trial or hearing, but shall use only
24that assessment made at the original trial or hearing.
25    (i) The court may make such judgments affecting the marital
26property as may be just and may enforce such judgments by

 

 

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1ordering a sale of marital property, with proceeds therefrom to
2be applied as determined by the court.
3    (j) After proofs have closed in the final hearing on all
4other issues between the parties (or in conjunction with the
5final hearing, if all parties so stipulate) and before judgment
6is entered, a party's petition for contribution to fees and
7costs incurred in the proceeding shall be heard and decided, in
8accordance with the following provisions:
9        (1) A petition for contribution, if not filed before
10    the final hearing on other issues between the parties,
11    shall be filed no later than 14 days after the closing of
12    proofs in the final hearing or within such other period as
13    the court orders.
14        (2) Any award of contribution to one party from the
15    other party shall be based on the criteria for division of
16    marital property under this Section 503 and, if maintenance
17    has been awarded, on the criteria for an award of
18    maintenance under Section 504.
19        (3) The filing of a petition for contribution shall not
20    be deemed to constitute a waiver of the attorney-client
21    privilege between the petitioning party and current or
22    former counsel; and such a waiver shall not constitute a
23    prerequisite to a hearing for contribution. If either
24    party's presentation on contribution, however, includes
25    evidence within the scope of the attorney-client
26    privilege, the disclosure or disclosures shall be narrowly

 

 

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1    construed and shall not be deemed by the court to
2    constitute a general waiver of the privilege as to matters
3    beyond the scope of the presentation.
4        (4) No finding on which a contribution award is based
5    or denied shall be asserted against counsel or former
6    counsel for purposes of any hearing under subsection (c) or
7    (e) of Section 508.
8        (5) A contribution award (payable to either the
9    petitioning party or the party's counsel, or jointly, as
10    the court determines) may be in the form of either a set
11    dollar amount or a percentage of fees and costs (or a
12    portion of fees and costs) to be subsequently agreed upon
13    by the petitioning party and counsel or, alternatively,
14    thereafter determined in a hearing pursuant to subsection
15    (c) of Section 508 or previously or thereafter determined
16    in an independent proceeding under subsection (e) of
17    Section 508.
18        (6) The changes to this Section 503 made by this
19    amendatory Act of 1996 apply to cases pending on or after
20    June 1, 1997, except as otherwise provided in Section 508.
21    (k) In determining the value of assets or property under
22this Section, the court shall employ a fair market value
23standard. The date of valuation for the purposes of division of
24assets shall be the date of trial or such other date as agreed
25by the parties or ordered by the court, within its discretion.
26If the court grants a petition brought under Section 2-1401 of

 

 

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1the Code of Civil Procedure, then the court has the discretion
2to use the date of the trial or such other date as agreed upon
3by the parties, or ordered by the court within its discretion,
4for purposes of determining the value of assets or property.
5    (l) The court may seek the advice of financial experts or
6other professionals, whether or not employed by the court on a
7regular basis. The advice given shall be in writing and made
8available by the court to counsel. Counsel may examine as a
9witness any professional consulted by the court designated as
10the court's witness. Professional personnel consulted by the
11court are subject to subpoena for the purposes of discovery,
12trial, or both. The court shall allocate the costs and fees of
13those professional personnel between the parties based upon the
14financial ability of each party and any other criteria the
15court considers appropriate, and the allocation is subject to
16reallocation under subsection (a) of Section 508. Upon the
17request of any party or upon the court's own motion, the court
18may conduct a hearing as to the reasonableness of those fees
19and costs.
20    (m) The changes made to this Section by Public Act 97-941
21apply only to petitions for dissolution of marriage filed on or
22after January 1, 2013 (the effective date of Public Act
2397-941).
24(Source: P.A. 99-78, eff. 7-20-15; 99-90, eff. 1-1-16; 99-763,
25eff. 1-1-17.)
 

 

 

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1    Section 95. No acceleration or delay. Where this Act makes
2changes in a statute that is represented in this Act by text
3that is not yet or no longer in effect (for example, a Section
4represented by multiple versions), the use of that text does
5not accelerate or delay the taking effect of (i) the changes
6made by this Act or (ii) provisions derived from any other
7Public Act.