101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5006

 

Introduced 2/18/2020, by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
750 ILCS 5/504  from Ch. 40, par. 504

    Amends the Illinois Marriage and Dissolution of Marriage Act. Provides that in determining whether a maintenance award is appropriate, the court shall consider any payments made as a lump sum at the time of the dissolution of marriage. Provides that in an award for maintenance, the court shall deduct any payments made as a lump sum at the time of the dissolution of marriage from the calculation of maintenance.


LRB101 18728 LNS 68183 b

 

 

A BILL FOR

 

HB5006LRB101 18728 LNS 68183 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 504 as follows:
 
6    (750 ILCS 5/504)  (from Ch. 40, par. 504)
7    Sec. 504. Maintenance.
8    (a) Entitlement to maintenance. In a proceeding for
9dissolution of marriage, legal separation, declaration of
10invalidity of marriage, or dissolution of a civil union, a
11proceeding for maintenance following a legal separation or
12dissolution of the marriage or civil union by a court which
13lacked personal jurisdiction over the absent spouse, a
14proceeding for modification of a previous order for maintenance
15under Section 510 of this Act, or any proceeding authorized
16under Section 501 of this Act, the court may grant a
17maintenance award for either spouse in amounts and for periods
18of time as the court deems just, without regard to marital
19misconduct, and the maintenance may be paid from the income or
20property of the other spouse. The court shall first make a
21finding as to whether a maintenance award is appropriate, after
22consideration of all relevant factors, including:
23        (1) the income and property of each party, including

 

 

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1    marital property apportioned and non-marital property
2    assigned to the party seeking maintenance, as well as all
3    financial obligations imposed on the parties as a result of
4    the dissolution of marriage, and any payments made as a
5    lump sum at the time of the dissolution of marriage;
6        (2) the needs of each party;
7        (3) the realistic present and future earning capacity
8    of each party;
9        (4) any impairment of the present and future earning
10    capacity of the party seeking maintenance due to that party
11    devoting time to domestic duties or having forgone or
12    delayed education, training, employment, or career
13    opportunities due to the marriage;
14        (5) any impairment of the realistic present or future
15    earning capacity of the party against whom maintenance is
16    sought;
17        (6) the time necessary to enable the party seeking
18    maintenance to acquire appropriate education, training,
19    and employment, and whether that party is able to support
20    himself or herself through appropriate employment;
21        (6.1) the effect of any parental responsibility
22    arrangements and its effect on a party's ability to seek or
23    maintain employment;
24        (7) the standard of living established during the
25    marriage;
26        (8) the duration of the marriage;

 

 

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1        (9) the age, health, station, occupation, amount and
2    sources of income, vocational skills, employability,
3    estate, liabilities, and the needs of each of the parties;
4        (10) all sources of public and private income
5    including, without limitation, disability and retirement
6    income;
7        (11) the tax consequences to each party;
8        (12) contributions and services by the party seeking
9    maintenance to the education, training, career or career
10    potential, or license of the other spouse;
11        (13) any valid agreement of the parties; and
12        (14) any other factor that the court expressly finds to
13    be just and equitable.
14    (b) (Blank).
15    (b-1) Amount and duration of maintenance. Unless the court
16finds that a maintenance award is appropriate, it shall bar
17maintenance as to the party seeking maintenance regardless of
18the length of the marriage at the time the action was
19commenced. Only if the court finds that a maintenance award is
20appropriate, the court shall order guideline maintenance in
21accordance with paragraph (1) or non-guideline maintenance in
22accordance with paragraph (2) of this subsection (b-1). If the
23application of guideline maintenance results in a combined
24maintenance and child support obligation that exceeds 50% of
25the payor's net income, the court may determine non-guideline
26maintenance in accordance with paragraph (2) of this subsection

 

 

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1(b-1), non-guideline child support in accordance with
2paragraph (3.4) of subsection (a) of Section 505, or both.
3        (1) Maintenance award in accordance with guidelines.
4    If the combined gross annual income of the parties is less
5    than $500,000 and the payor has no obligation to pay child
6    support or maintenance or both from a prior relationship,
7    maintenance payable after the date the parties' marriage is
8    dissolved shall be in accordance with subparagraphs (A) and
9    (B) of this paragraph (1), unless the court makes a finding
10    that the application of the guidelines would be
11    inappropriate. The court shall deduct any payments made as
12    a lump sum at the time of the dissolution of marriage from
13    the calculation of maintenance.
14            (A) The amount of maintenance under this paragraph
15        (1) shall be calculated by taking 33 1/3% of the
16        payor's net annual income minus 25% of the payee's net
17        annual income. The amount calculated as maintenance,
18        however, when added to the net income of the payee,
19        shall not result in the payee receiving an amount that
20        is in excess of 40% of the combined net income of the
21        parties.
22            (A-1) Modification of maintenance orders entered
23        before January 1, 2019 that are and continue to be
24        eligible for inclusion in the gross income of the payee
25        for federal income tax purposes and deductible by the
26        payor shall be calculated by taking 30% of the payor's

 

 

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1        gross annual income minus 20% of the payee's gross
2        annual income, unless both parties expressly provide
3        otherwise in the modification order. The amount
4        calculated as maintenance, however, when added to the
5        gross income of the payee, may not result in the payee
6        receiving an amount that is in excess of 40% of the
7        combined gross income of the parties.
8            (B) The duration of an award under this paragraph
9        (1) shall be calculated by multiplying the length of
10        the marriage at the time the action was commenced by
11        whichever of the following factors applies: less than 5
12        years (.20); 5 years or more but less than 6 years
13        (.24); 6 years or more but less than 7 years (.28); 7
14        years or more but less than 8 years (.32); 8 years or
15        more but less than 9 years (.36); 9 years or more but
16        less than 10 years (.40); 10 years or more but less
17        than 11 years (.44); 11 years or more but less than 12
18        years (.48); 12 years or more but less than 13 years
19        (.52); 13 years or more but less than 14 years (.56);
20        14 years or more but less than 15 years (.60); 15 years
21        or more but less than 16 years (.64); 16 years or more
22        but less than 17 years (.68); 17 years or more but less
23        than 18 years (.72); 18 years or more but less than 19
24        years (.76); 19 years or more but less than 20 years
25        (.80). For a marriage of 20 or more years, the court,
26        in its discretion, shall order maintenance for a period

 

 

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1        equal to the length of the marriage or for an
2        indefinite term.
3        (1.5) In the discretion of the court, any term of
4    temporary maintenance paid by court order under Section 501
5    may be a corresponding credit to the duration of
6    maintenance set forth in subparagraph (b-1)(1)(B).
7        (2) Maintenance award not in accordance with
8    guidelines. Any non-guidelines award of maintenance shall
9    be made after the court's consideration of all relevant
10    factors set forth in subsection (a) of this Section.
11    (b-2) Findings. In each case involving the issue of
12maintenance, the court shall make specific findings of fact, as
13follows:
14        (1) the court shall state its reasoning for awarding or
15    not awarding maintenance and shall include references to
16    each relevant factor set forth in subsection (a) of this
17    Section;
18        (2) if the court deviates from applicable guidelines
19    under paragraph (1) of subsection (b-1), it shall state in
20    its findings the amount of maintenance (if determinable) or
21    duration that would have been required under the guidelines
22    and the reasoning for any variance from the guidelines; and
23        (3) the court shall state whether the maintenance is
24    fixed-term, indefinite, reviewable, or reserved by the
25    court.
26    (b-3) Gross income. For purposes of this Section, the term

 

 

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1"gross income" means all income from all sources, within the
2scope of that phrase in Section 505 of this Act, except
3maintenance payments in the pending proceedings shall not be
4included.
5    (b-3.5) Net income. As used in this Section, "net income"
6has the meaning provided in Section 505 of this Act, except
7maintenance payments in the pending proceedings shall not be
8included.
9    (b-4) Modification of maintenance orders entered before
10January 1, 2019. For any order for maintenance or unallocated
11maintenance and child support entered before January 1, 2019
12that is modified after December 31, 2018, payments thereunder
13shall continue to retain the same tax treatment for federal
14income tax purposes unless both parties expressly agree
15otherwise and the agreement is included in the modification
16order.
17    (b-4.5) Maintenance designation.
18        (1) Fixed-term maintenance. If a court grants
19    maintenance for a fixed term, the court shall designate the
20    termination of the period during which this maintenance is
21    to be paid. Maintenance is barred after the end of the
22    period during which fixed-term maintenance is to be paid.
23        (2) Indefinite maintenance. If a court grants
24    maintenance for an indefinite term, the court shall not
25    designate a termination date. Indefinite maintenance shall
26    continue until modification or termination under Section

 

 

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1    510.
2        (3) Reviewable maintenance. If a court grants
3    maintenance for a specific term with a review, the court
4    shall designate the period of the specific term and state
5    that the maintenance is reviewable. Upon review, the court
6    shall make a finding in accordance with subdivision (b-8)
7    of this Section, unless the maintenance is modified or
8    terminated under Section 510.
9    (b-5) Interest on maintenance. Any maintenance obligation
10including any unallocated maintenance and child support
11obligation, or any portion of any support obligation, that
12becomes due and remains unpaid shall accrue simple interest as
13set forth in Section 505 of this Act.
14    (b-7) Maintenance judgments. Any new or existing
15maintenance order including any unallocated maintenance and
16child support order entered by the court under this Section
17shall be deemed to be a series of judgments against the person
18obligated to pay support thereunder. Each such judgment to be
19in the amount of each payment or installment of support and
20each such judgment to be deemed entered as of the date the
21corresponding payment or installment becomes due under the
22terms of the support order, except no judgment shall arise as
23to any installment coming due after the termination of
24maintenance as provided by Section 510 of the Illinois Marriage
25and Dissolution of Marriage Act or the provisions of any order
26for maintenance. Each such judgment shall have the full force,

 

 

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1effect and attributes of any other judgment of this State,
2including the ability to be enforced. Notwithstanding any other
3State or local law to the contrary, a lien arises by operation
4of law against the real and personal property of the obligor
5for each installment of overdue support owed by the obligor.
6    (b-8) Review of maintenance. Upon review of any previously
7ordered maintenance award, the court may extend maintenance for
8further review, extend maintenance for a fixed non-modifiable
9term, extend maintenance for an indefinite term, or permanently
10terminate maintenance in accordance with subdivision
11(b-1)(1)(A) of this Section.
12    (c) Maintenance during an appeal. The court may grant and
13enforce the payment of maintenance during the pendency of an
14appeal as the court shall deem reasonable and proper.
15    (d) Maintenance during imprisonment. No maintenance shall
16accrue during the period in which a party is imprisoned for
17failure to comply with the court's order for the payment of
18such maintenance.
19    (e) Fees when maintenance is paid through the clerk. When
20maintenance is to be paid through the clerk of the court in a
21county of 500,000 inhabitants or less, the order shall direct
22the obligor to pay to the clerk, in addition to the maintenance
23payments, all fees imposed by the county board under paragraph
24(4) of subsection (bb) of Section 27.1a of the Clerks of Courts
25Act. When maintenance is to be paid through the clerk of the
26court in a county of more than 500,000 but less than 3,000,000

 

 

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1inhabitants, the order shall direct the obligor to pay to the
2clerk, in addition to the maintenance payments, all fees
3imposed by the county board under paragraph (4) of subsection
4(bb) of Section 27.2 of the Clerks of Courts Act. Unless paid
5in cash or pursuant to an order for withholding, the payment of
6the fee shall be by a separate instrument from the support
7payment and shall be made to the order of the Clerk.
8    (f) Maintenance secured by life insurance. An award ordered
9by a court upon entry of a dissolution judgment or upon entry
10of an award of maintenance following a reservation of
11maintenance in a dissolution judgment may be reasonably
12secured, in whole or in part, by life insurance on the payor's
13life on terms as to which the parties agree or, if the parties
14do not agree, on such terms determined by the court, subject to
15the following:
16        (1) With respect to existing life insurance, provided
17    the court is apprised through evidence, stipulation, or
18    otherwise as to level of death benefits, premium, and other
19    relevant data and makes findings relative thereto, the
20    court may allocate death benefits, the right to assign
21    death benefits, or the obligation for future premium
22    payments between the parties as it deems just.
23        (2) To the extent the court determines that its award
24    should be secured, in whole or in part, by new life
25    insurance on the payor's life, the court may only order:
26            (i) that the payor cooperate on all appropriate

 

 

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1        steps for the payee to obtain such new life insurance;
2        and
3            (ii) that the payee, at his or her sole option and
4        expense, may obtain such new life insurance on the
5        payor's life up to a maximum level of death benefit
6        coverage, or descending death benefit coverage, as is
7        set by the court, such level not to exceed a reasonable
8        amount in light of the court's award, with the payee or
9        the payee's designee being the beneficiary of such life
10        insurance.
11    In determining the maximum level of death benefit coverage,
12    the court shall take into account all relevant facts and
13    circumstances, including the impact on access to life
14    insurance by the maintenance payor. If in resolving any
15    issues under paragraph (2) of this subsection (f) a court
16    reviews any submitted or proposed application for new
17    insurance on the life of a maintenance payor, the review
18    shall be in camera.
19        (3) (Blank).
20(Source: P.A. 99-90, eff. 1-1-16; 99-763, eff. 1-1-17; 100-520,
21eff. 1-1-18 (see Section 5 of P.A. 100-565 for the effective
22date of P.A. 100-520); 100-923, eff. 1-1-19.)