State of Illinois
90th General Assembly
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90_HB1612sam003

                                           LRB9003937EGfgam06
 1                    AMENDMENT TO HOUSE BILL 1612
 2        AMENDMENT NO.     .  Amend House Bill 1612,  AS  AMENDED,
 3    by replacing the title with the following:
 4        "AN  ACT  in relation to marital property, amending named
 5    Acts."; and
 6    by replacing everything after the enacting  clause  with  the
 7    following:
 8        "Section  5.  The  Illinois  Pension  Code  is amended by
 9    adding Section 1-119 as follows:
10        (40 ILCS 5/1-119 new)
11        Sec.  1-119.   Qualified  Illinois   Domestic   Relations
12    Orders.
13        (a)  For the purposes of this Section:
14             (1)  "Alternate  payee"  means  the  spouse,  former
15        spouse,  child,  or  other  dependent  of  a  member,  as
16        designated in a QILDRO.
17             (2)  "Death  benefit"  means any nonperiodic benefit
18        payable upon the death of a member to a survivor  of  the
19        member   or   to   the   member's  estate  or  designated
20        beneficiary,  including  any  refund   of   contributions
21        following  the member's death, whether or not the benefit
                            -2-            LRB9003937EGfgam06
 1        is so called under the applicable Article of this Code.
 2             (3)  "Disability  benefit"  means  any  periodic  or
 3        nonperiodic benefit payable to a disabled member based on
 4        occupational or nonoccupational  disability  or  disease,
 5        including  any  periodic  or nonperiodic increases in the
 6        benefit, whether or not the benefit is  so  called  under
 7        the applicable Article of this Code.
 8             (4)  "Member"  means  any person who participates in
 9        or has service credits in a retirement system,  including
10        a  person  who  is  receiving or is eligible to receive a
11        retirement  or  disability  benefit,  without  regard  to
12        whether the person has withdrawn from service.
13             (5)  "Member's refund" means a return of  all  or  a
14        portion  of  a  member's contributions that is elected by
15        the member (or provided  by  operation  of  law)  and  is
16        payable before the member's death.
17             (6)  "Qualified  Illinois  Domestic Relations Order"
18        or "QILDRO" means an Illinois court order that creates or
19        recognizes the existence of an alternate payee's right to
20        receive all or a portion of a member's  accrued  benefits
21        in  a  retirement  system,  is  issued  pursuant  to this
22        Section and Section 503(b)(2) of  the  Illinois  Marriage
23        and   Dissolution   of   Marriage   Act,  and  meets  the
24        requirements of this Section.  A QILDRO is not  the  same
25        as  a  qualified  domestic relations order or QDRO issued
26        pursuant to Section 414(p) of the Internal  Revenue  Code
27        of  1986.   The requirements of paragraphs (2) and (3) of
28        that Section do not apply to  orders  issued  under  this
29        Section   and   shall  not  be  deemed  a  guide  to  the
30        interpretation of this Section; a QILDRO is  intended  to
31        be  a  domestic  relations  order  within  the meaning of
32        paragraph (11) of that Section.
33             (7)  "Regular payee" means  the  person  to  whom  a
34        benefit  would  be payable in the absence of an effective
                            -3-            LRB9003937EGfgam06
 1        QILDRO.
 2             (8)  "Retirement  benefit"  means  any  periodic  or
 3        nonperiodic benefit payable to a retired member based  on
 4        age  or  service,  or  on  the amounts accumulated to the
 5        credit of the member for retirement  purposes,  including
 6        any  periodic  or  nonperiodic  increases in the benefit,
 7        whether or  not  the  benefit  is  so  called  under  the
 8        applicable Article of this Code.
 9             (9)  "Retirement   system"  or  "system"  means  any
10        retirement system, pension fund, or other public employee
11        retirement benefit plan that is maintained or established
12        under any of Articles 2 through 18 of this Code.
13             (10)  "Surviving  spouse"  means  the  spouse  of  a
14        member at the time of the member's death.
15             (11)  "Survivor's  benefit"   means   any   periodic
16        benefit  payable to a surviving spouse, child, parent, or
17        other  survivor  of  a  deceased  member,  including  any
18        periodic or nonperiodic increases in the benefit, whether
19        or not the benefit is  so  called  under  the  applicable
20        Article of this Code.
21        (b) (1)  An Illinois court of competent jurisdiction in a
22    proceeding  for  declaration of invalidity of marriage, legal
23    separation, or dissolution of marriage that provides for  the
24    distribution  of  property,  or  any  proceeding  to amend or
25    enforce such a property distribution, may order that  all  or
26    any  part  of  any  (i)  retirement  benefit or (ii) member's
27    refund payable to or on behalf of the member be instead  paid
28    by the retirement system to a designated alternate payee.
29        (2)  An order issued under this Section provides only for
30    the  diversion  to  an  alternate  payee  of certain benefits
31    otherwise  payable  by  the  retirement  system   under   the
32    provisions of this Code.  The existence of a QILDRO shall not
33    cause the retirement system to pay any benefit, or any amount
34    of  benefit,  to  an alternate payee that would not have been
                            -4-            LRB9003937EGfgam06
 1    payable by the system to a regular payee in  the  absence  of
 2    the QILDRO.
 3        (3)  A  QILDRO  shall not affect the vesting, accrual, or
 4    amount of any benefit, nor the date or conditions upon  which
 5    any  benefit  becomes payable, nor the right of the member or
 6    the  member's  survivors  to  make  any  election   otherwise
 7    authorized under this Code, except as provided in subsections
 8    (i) and (j).
 9        (4)  A QILDRO shall not apply to or affect the payment of
10    any  survivor's  benefit,  death benefit, disability benefit,
11    life insurance benefit, or health insurance benefit.
12        (c) (1)  A  QILDRO  must  contain  the  name,   residence
13    address,  and social security number of the member and of the
14    alternate payee and must identify the  retirement  system  to
15    which it is directed and the court issuing the order.
16        (2)  A  QILDRO  must  specify  each  benefit  to which it
17    applies, and it must specify the amount of the benefit to  be
18    paid  to  the  alternate  payee,  which  in  the  case  of  a
19    nonperiodic  benefit  shall  be expressed as a dollar amount,
20    and in the case of a periodic benefit shall be expressed as a
21    dollar amount per month.
22        (3)  With respect to each benefit to which it applies,  a
23    QILDRO  must specify when the order will take effect.  In the
24    case of a periodic benefit that is being paid at the time the
25    order is received, a QILDRO shall take effect immediately  or
26    on a specified later date; if it takes effect immediately, it
27    shall  become  effective  on  the  first benefit payment date
28    occurring at least 30 days after the order is received by the
29    retirement system.  In the  case  of  any  other  benefit,  a
30    QILDRO  shall  take  effect when the benefit becomes payable.
31    However, in no event shall a QILDRO apply to any benefit paid
32    by the retirement system before or within 30 days  after  the
33    order  is  received.   A retirement system may adopt rules to
34    prorate the amount of the first and final  periodic  payments
                            -5-            LRB9003937EGfgam06
 1    to an alternate payee.
 2        (4)  A  QILDRO  must also contain any provisions required
 3    under subsection (n) or (p).
 4        (d) (1)  An order issued under this Section shall not  be
 5    implemented  unless  a  certified  copy of the order has been
 6    filed with the retirement system.  The system shall  promptly
 7    notify the member and the alternate payee by first class mail
 8    of its receipt of the order.
 9        (2)  Neither  the  retirement  system, nor its board, nor
10    any of its employees shall  be  liable  to  the  member,  the
11    regular  payee,  or  any  other  person  for  any amount of a
12    benefit that is paid in good faith to an alternate  payee  in
13    accordance with a QILDRO.
14        (3)  At the time the order is submitted to the retirement
15    system,  it  shall  be  accompanied  by  a  nonrefundable $50
16    processing fee payable to the retirement system, to  be  used
17    by  the  system to defer any administrative costs arising out
18    of the implementation of the QILDRO.
19        (e) (1)  Each  alternate   payee   is   responsible   for
20    maintaining  a  current  residence  address  on file with the
21    retirement system.  The retirement system shall have no  duty
22    to  attempt  to locate any alternate payee by any means other
23    than sending written notice to the last known address of  the
24    alternate payee on file with the system.
25        (2)  In  the  event  that  the  system  cannot  locate an
26    alternate payee when a benefit becomes  payable,  the  system
27    shall hold the amount of the benefit payable to the alternate
28    payee and make payment to the alternate payee if he or she is
29    located  within  the  following  180  days.  If the alternate
30    payee has not been located within 180 days from the date  the
31    benefit becomes payable, the system shall pay the benefit and
32    the  amounts  held  to  the  regular payee.  If the alternate
33    payee is subsequently located,  the  system  shall  thereupon
34    implement the QILDRO, but the interest of the alternate payee
                            -6-            LRB9003937EGfgam06
 1    in  any  amounts  already  paid to the regular payee shall be
 2    extinguished.  Amounts held under this subsection  shall  not
 3    bear interest.
 4        (f) (1)  If  the amount of a benefit that is specified in
 5    a QILDRO  for payment  to  an  alternate  payee  exceeds  the
 6    actual  amount  of  that  benefit  payable  by the retirement
 7    system, the excess  shall  be  disregarded.   The  retirement
 8    system  shall have no liability to any alternate payee or any
 9    other person for the disregarded amounts.
10        (2)  In the event of multiple QILDROs against  a  member,
11    the  retirement  system shall honor all of the QILDROs to the
12    extent possible.  However, if the total amount of  a  benefit
13    to  be  paid  to alternate payees under all QILDROs in effect
14    against the member exceeds the actual amount of that  benefit
15    payable  by the system, the QILDROs shall be satisfied in the
16    order of their receipt by the system until the amount of  the
17    benefit  is  exhausted,  and  shall not be adjusted pro rata.
18    Any amounts that cannot be paid  due  to  exhaustion  of  the
19    benefit  shall remain unpaid, and the retirement system shall
20    have no liability to any alternate payee or any other  person
21    for such amounts.
22        (3)  A  modification  of a QILDRO shall be filed with the
23    retirement system in the same manner  as  a  new  QILDRO.   A
24    modification that does not increase the amount of any benefit
25    payable  to  the  alternate  payee,  and  does not expand the
26    QILDRO to affect any benefit not affected by  the  unmodified
27    QILDRO,  does  not  affect  the  priority  of  payment  under
28    subdivision  (f)(2); the priority of payment of a QILDRO that
29    has been modified to  increase  the  amount  of  any  benefit
30    payable  to  the  alternate payee, or to expand the QILDRO to
31    affect a benefit not affected by the unmodified QILDRO, shall
32    be based on  the  date  on  which  the  system  receives  the
33    modification of the QILDRO.
34        (g) (1)  Upon  the  death  of the alternate payee under a
                            -7-            LRB9003937EGfgam06
 1    QILDRO, the QILDRO shall expire and cease  to  be  effective,
 2    and  in  the  absence of another QILDRO, the right to receive
 3    any affected benefit shall revert to the regular payee.
 4        (2)  All QILDROs relating to a member's participation  in
 5    a  particular  retirement system shall expire and cease to be
 6    effective  upon  the  issuance  of  a  member's  refund  that
 7    terminates the  member's  participation  in  that  retirement
 8    system,  without regard to whether the refund was paid to the
 9    member or to an alternate payee under a QILDRO.   An  expired
10    QILDRO  shall  not be automatically revived by any subsequent
11    return by the member to service under that retirement system.
12        (h) (1)  Within 45 days after receiving a  subpoena  from
13    any  party  to  a proceeding for declaration of invalidity of
14    marriage, legal separation, or  dissolution  of  marriage  in
15    which  a  QILDRO  may be issued, or after receiving a request
16    from the member, a retirement system shall issue a  statement
17    of  a  member's  accumulated contributions, accrued benefits,
18    and  other  interests  in  the  plan  administered   by   the
19    retirement  system  based on the data on file with the system
20    on the date the subpoena is received,  and  of  any  relevant
21    procedures,  rules, or modifications to the model QILDRO form
22    that have been adopted by the retirement system.
23        (2)  In no event shall the retirement system be  required
24    to  furnish  to  any  person  an  actuarial opinion as to the
25    present value of the member's benefits or other interests.
26        (3)  The papers, entries, and records, or parts  thereof,
27    of  any  retirement  system  may be proved by a copy thereof,
28    certified under the signature of the secretary of the  system
29    or  other  duly appointed keeper of the records of the system
30    and the corporate seal, if any.
31        (i)  In  a  retirement  system  in  which  a  member   or
32    beneficiary is required to apply to the system for payment of
33    a  benefit,  the  required  application  may  be  made  by an
34    alternate payee who is entitled to all of that benefit  under
                            -8-            LRB9003937EGfgam06
 1    a   QILDRO,   provided  that  all  other  qualifications  and
 2    requirements have been met.  However, the alternate payee may
 3    not make the required application for a member's refund or  a
 4    retirement  benefit  if  the  member  is in active service or
 5    below  the  minimum  age  for   receiving   an   undiscounted
 6    retirement annuity in the retirement system that has received
 7    the  QILDRO  or  in  any other retirement system in which the
 8    member has creditable  service  and  in  which  the  member's
 9    rights  under  the Retirement Systems Reciprocal Act would be
10    affected as a result of the alternate payee's application for
11    a member's refund or retirement benefit.
12        (j) (1)  So long as there is in effect a QILDRO  relating
13    to a member's retirement benefit, the affected member may not
14    elect  a  form  of payment that has the effect of diminishing
15    the amount of the payment to which  any  alternate  payee  is
16    entitled,  unless  the  alternate  payee has consented to the
17    election in writing and this consent has been filed with  the
18    retirement system.
19        (2)  If  a member attempts to make an election prohibited
20    under subdivision (j)(1), the retirement system shall  reject
21    the  election and advise the member of the need to obtain the
22    alternate payee's consent.
23        (3)  If  a  retirement  system  discovers  that  it   has
24    mistakenly  allowed  an election prohibited under subdivision
25    (j)(1),  it  shall  thereupon  disallow  that  election   and
26    recalculate  any  benefits  affected  thereby.  If the system
27    determines that an amount paid to a regular payee should have
28    been paid  to  an  alternate  payee,  the  system  shall,  if
29    possible, recoup the amounts as provided in subsection (k) of
30    this Section.
31        (k)  In  the  event  that a regular payee or an alternate
32    payee is overpaid, the retirement  system  shall  recoup  the
33    amounts by deducting the overpayment from future payments and
34    making  payment  to  the  other  payee.   The system may make
                            -9-            LRB9003937EGfgam06
 1    deductions for recoupment over a period of time in  the  same
 2    manner  as  is  provided by law or rule for the recoupment of
 3    other  amounts  incorrectly  disbursed  by  the   system   in
 4    instances  not  involving  a  QILDRO.   The retirement system
 5    shall incur no liability to either the alternate payee or the
 6    regular payee as a result of any payment made in good  faith,
 7    regardless  of  whether  the  system  is  able  to accomplish
 8    recoupment.
 9        (l) (1)  A  retirement  system  that  has,   before   the
10    effective  date  of  this Section, received and implemented a
11    domestic relations order that directs payment of a benefit to
12    a person  other  than  the  regular  payee  may  continue  to
13    implement  that order, and shall not be liable to the regular
14    payee for any amounts paid in good faith to that other person
15    in accordance with the order.
16        (2)  A domestic relations order directing  payment  of  a
17    benefit  to  a  person  other than the regular payee that was
18    issued by a court but not implemented by a retirement  system
19    prior  to  the  effective date of this Section shall be void.
20    However, a person who is the beneficiary or  alternate  payee
21    of  a  domestic  relations  order that is rendered void under
22    this subsection may petition the court that issued the  order
23    for an amended order that complies with this Section.
24        (m) (1)  In  accordance  with  Article XIII, Section 5 of
25    the Illinois Constitution, which prohibits the impairment  or
26    diminishment  of  benefits  granted under this Code, a QILDRO
27    issued against a member of a  retirement  system  established
28    under  an  Article  of  this Code that exempts the payment of
29    benefits or refunds from attachment, garnishment, judgment or
30    other legal  process  shall  not  be  effective  without  the
31    written   consent   of   the   member  if  the  member  began
32    participating in the  retirement  system  on  or  before  the
33    effective  date  of  this Section.  That consent must specify
34    the retirement system, the court case number, and  the  names
                            -10-           LRB9003937EGfgam06
 1    and  social  security numbers of the member and the alternate
 2    payee.  The consent must accompany  the  QILDRO  when  it  is
 3    filed   with   the   retirement   system,   and  must  be  in
 4    substantially the following form:
 5                    CONSENT TO ISSUANCE OF QILDRO
 6    Court Case Number: ....................
 7    Member's Social Security Number: ........................
 8    Alternate payee's Social Security Number: ...............
 9        I, (name), a member of the  (retirement  system),  hereby
10    consent  to  the  issuance  of  a Qualified Illinois Domestic
11    Relations Order.  I understand that under the Order,  certain
12    benefits  that  would  otherwise  be  payable to me, or to my
13    surviving spouse or estate, will instead be payable to  (name
14    of  alternate  payee).   I  also  understand that my right to
15    elect certain forms of payment of my  retirement  benefit  or
16    member's refund may be limited as a result of the Order.
17        DATED:.......................
18        SIGNED:......................
19        (2)  A member's consent to the issuance of a QILDRO shall
20    be  irrevocable,  and shall apply to any QILDRO that pertains
21    to the alternate payee and retirement  system  named  in  the
22    consent.
23        (n)  An  order  issued  under  this  Section  shall be in
24    substantially the following  form  (omitting  any  provisions
25    that are not applicable):
26             QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER
27        THIS CAUSE coming before the Court for the purpose of the
28    entry  of a Qualified Illinois Domestic Relations Order under
29    the provisions of Section 1-119 of the Illinois Pension Code,
30    the Court  having  jurisdiction  over  the  parties  and  the
31    subject  matter  hereof;   the  Court finding that one of the
32    parties to this proceeding is a member of a retirement system
                            -11-           LRB9003937EGfgam06
 1    subject to Section 1-119 of the Illinois Pension  Code,  this
 2    Order  is  entered  to  implement  a division of that party's
 3    interest in the retirement system; and the Court being  fully
 4    advised;
 5        IT IS HEREBY ORDERED AS FOLLOWS:
 6        (1)  The  definitions  and  other  provisions  of Section
 7    1-119 of the Illinois Pension Code are adopted  by  reference
 8    and made a part of this Order.
 9        (2)  Identification of Retirement System and parties:
10             Retirement System: (name and address)
11             Member: (name, residence address and social security
12        number)
13             Alternate payee: (name, residence address and social
14        security number)
15        (3)  The   Retirement  System  shall  pay  the  indicated
16    amounts of the following specified benefits to the  alternate
17    payee under the following terms and conditions:
18             (i)  Of   the   member's   retirement  benefit,  the
19        Retirement  System  shall  pay  to  the  alternate  payee
20        $...... per month, beginning (if the benefit  is  already
21        being  paid,  either  immediately or on a specified later
22        date; otherwise,  on  the  date  the  retirement  benefit
23        commences),  and  ending  upon  the  termination  of  the
24        retirement  benefit  or the death of the alternate payee,
25        whichever occurs first.
26             (ii)  Of any member's refund that  becomes  payable,
27        the  Retirement  System  shall pay to the alternate payee
28        $...... when the member's refund becomes payable.
29        (4)  In accordance with subsection (j) of  Section  1-119
30    of  the  Illinois  Pension Code, so long as this QILDRO is in
31    effect, the member may not elect a form  of  payment  of  the
32    retirement  benefit  that  has  the effect of diminishing the
33    amount of  the  payment  to  which  the  alternate  payee  is
34    entitled,  unless  the  alternate  payee has consented to the
                            -12-           LRB9003937EGfgam06
 1    election in writing and this consent has been filed with  the
 2    retirement system.
 3        (5)  If  the member began participating in the Retirement
 4    System before the effective date of this Section, this  Order
 5    shall  not  take  effect  unless  accompanied  by the written
 6    consent of the member as required  under  subsection  (m)  of
 7    Section 1-119 of the Illinois Pension Code.
 8        (6)  The Court retains jurisdiction to modify this Order.
 9        DATED:.......................
10        SIGNED:......................
11        (o) (1)  A  court  in  Illinois  that has issued a QILDRO
12    shall retain jurisdiction  of  all  issues  relating  to  the
13    modification  of  the  QILDRO.  The Administrative Review Law
14    and the rules adopted pursuant thereto shall govern and apply
15    to   all   proceedings   for   judicial   review   of   final
16    administrative decisions of the  board  of  trustees  of  the
17    retirement system arising under this Section.
18        (2)  The  term "administrative decision" is defined as in
19    Section 3-101 of the Code of Civil Procedure.  The venue  for
20    review  under the Administrative Review Law shall be the same
21    as  is  provided  by  law  for  judicial  review   of   other
22    administrative decisions of the retirement system.
23        (p) (1)  Each  retirement system may adopt any procedures
24    or  rules  that  it  deems  necessary  or  useful   for   the
25    implementation of this Section.
26        (2)  Each  retirement system may by rule modify the model
27    QILDRO form  provided  in  subsection  (n)  or  require  that
28    additional  information  be  included in QILDROs presented to
29    the system, as may be necessary to  meet  the  needs  of  the
30    retirement system.
31        Section  10.   The  Illinois  Marriage and Dissolution of
                            -13-           LRB9003937EGfgam06
 1    Marriage Act is amended by changing Sections 452 and  503  as
 2    follows:
 3        (750 ILCS 5/452)
 4        Sec.   452.  Petition.   The  parties  to  a  dissolution
 5    proceeding  may  file  a  joint   petition   for   simplified
 6    dissolution  if  they  certify  that  all  of  the  following
 7    conditions exist when the proceeding is commenced:
 8             (a)  Neither  party  is dependent on the other party
 9        for support or each party is willing to waive  the  right
10        to  support; and the parties understand that consultation
11        with attorneys may help them  determine  eligibility  for
12        spousal support.
13             (b)  Either  party has met the residency requirement
14        of Section 401 of this Act.
15             (c)  Irreconcilable  differences  have  caused   the
16        irretrievable  breakdown  of the marriage and the parties
17        have been separated 6  months  or  more  and  efforts  at
18        reconciliation   have   failed   or  future  attempts  at
19        reconciliation would be impracticable and not in the best
20        interests of the family.
21             (d)  No children were born of  the  relationship  of
22        the   parties  or  adopted  by  the  parties  during  the
23        marriage, and the wife, to her knowledge, is not pregnant
24        by the husband.
25             (e)  The duration of the marriage does not exceed  8
26         5  years.
27             (f)  Neither   party   has   any  interest  in  real
28        property.
29             (g)  The parties waive any rights to maintenance.
30             (h)  The total fair  market  value  of  all  marital
31        property,  after deducting all encumbrances, is less than
32        $10,000, $5,000 and the combined gross annualized  income
33        from  all sources is less than $35,000, and neither party
                            -14-           LRB9003937EGfgam06
 1        has a gross annualized income from all sources in  excess
 2        of $20,000 $25,000.
 3             (i)  The  parties  have  disclosed to each other all
 4        assets and  their  tax  returns  for  all  years  of  the
 5        marriage.
 6             (j)  The  parties  have executed a written agreement
 7        dividing all assets  in  excess  of  $100  in  value  and
 8        allocating   responsibility  for  debts  and  liabilities
 9        between the parties.
10    (Source: P.A. 88-39.)
11        (750 ILCS 5/503) (from Ch. 40, par. 503)
12        Sec. 503.  Disposition of property.
13        (a)  For purposes of this Act, "marital  property"  means
14    all  property  acquired  by  either  spouse subsequent to the
15    marriage,  except  the   following,   which   is   known   as
16    "non-marital property":
17             (1)  property acquired by gift, legacy or descent;
18             (2)  property  acquired  in  exchange  for  property
19        acquired  before the marriage or in exchange for property
20        acquired by gift, legacy or descent;
21             (3)  property acquired by a spouse after a  judgment
22        of legal separation;
23             (4)  property  excluded  by  valid  agreement of the
24        parties;
25             (5)  any judgment or property obtained  by  judgment
26        awarded to a spouse from the other spouse;
27             (6)  property acquired before the marriage;
28             (7)  the increase in value of property acquired by a
29        method  listed  in  paragraphs  (1)  through  (6) of this
30        subsection, irrespective of whether the increase  results
31        from  a  contribution  of  marital  property, non-marital
32        property, the personal effort of a spouse, or  otherwise,
33        subject   to  the  right  of  reimbursement  provided  in
                            -15-           LRB9003937EGfgam06
 1        subsection (c) of this Section; and
 2             (8)  income  from  property  acquired  by  a  method
 3        listed in paragraphs (1) through (7)  of this  subsection
 4        if  the income is not attributable to the personal effort
 5        of a spouse.
 6        (b)(1)  For purposes of distribution of property pursuant
 7    to this Section, all property acquired by either spouse after
 8    the marriage and before a judgment of dissolution of marriage
 9    or  declaration  of   invalidity   of   marriage,   including
10    non-marital   property   transferred   into   some   form  of
11    co-ownership between the spouses, is presumed to  be  marital
12    property, regardless of whether title is held individually or
13    by  the  spouses  in  some form of co-ownership such as joint
14    tenancy, tenancy in  common,  tenancy  by  the  entirety,  or
15    community  property.   The presumption of marital property is
16    overcome by a showing that the property  was  acquired  by  a
17    method listed in subsection (a) of this Section.
18        (2)  For purposes of distribution of property pursuant to
19    this   Section,   all  pension  benefits  (including  pension
20    benefits under the Illinois Pension Code) acquired by  either
21    spouse   after   the   marriage  and  before  a  judgment  of
22    dissolution of marriage or declaration of invalidity  of  the
23    marriage  are  presumed to be marital property, regardless of
24    which  spouse  participates  in  the   pension   plan.    The
25    presumption  that these pension benefits are marital property
26    is overcome by a  showing  that  the  pension  benefits  were
27    acquired  by  a  method  listed  in  subsection  (a)  of this
28    Section.  The right to a division of pension benefits in just
29    proportions under this Section is enforceable  under  Section
30    1-119 of the Illinois Pension Code.
31        The  value  of  pension  benefits  in a retirement system
32    subject to the Illinois Pension Code shall be  determined  in
33    accordance  with  the valuation procedures established by the
34    retirement system.
                            -16-           LRB9003937EGfgam06
 1        The recognition of pension benefits as  marital  property
 2    and  the  division  of those benefits pursuant to a Qualified
 3    Illinois Domestic Relations Order shall not be deemed to be a
 4    diminishment, alienation, or impairment  of  those  benefits.
 5    The division of pension benefits is an allocation of property
 6    in which each spouse has a species of common ownership.
 7        (c)  Commingled marital and non-marital property shall be
 8    treated  in  the following manner, unless otherwise agreed by
 9    the spouses:
10             (1)  When  marital  and  non-marital  property   are
11        commingled  by  contributing  one estate of property into
12        another  resulting  in  a  loss  of   identity   of   the
13        contributed   property,   the   classification   of   the
14        contributed   property   is   transmuted  to  the  estate
15        receiving the contribution, subject to the provisions  of
16        paragraph  (2)  of  this  subsection;  provided  that  if
17        marital  and  non-marital  property  are  commingled into
18        newly acquired property resulting in a loss  of  identity
19        of  the  contributing  estates,  the  commingled property
20        shall be deemed transmuted to marital  property,  subject
21        to the provisions of paragraph (2) of this subsection.
22             (2)  When   one   estate   of   property   makes   a
23        contribution  to  another  estate  of property, or when a
24        spouse  contributes  personal   effort   to   non-marital
25        property,  the  contributing  estate  shall be reimbursed
26        from    the    estate    receiving    the    contribution
27        notwithstanding any transmutation; provided, that no such
28        reimbursement  shall  be   made   with   respect   to   a
29        contribution  which  is  not  retraceable  by  clear  and
30        convincing  evidence, or was a gift, or, in the case of a
31        contribution  of  personal  effort   of   a   spouse   to
32        non-marital  property,  unless  the effort is significant
33        and  results   in   substantial   appreciation   of   the
34        non-marital  property.  Personal effort of a spouse shall
                            -17-           LRB9003937EGfgam06
 1        be deemed a contribution  by  the  marital  estate.   The
 2        court  may  provide  for reimbursement out of the marital
 3        property to be divided or by imposing a lien against  the
 4        non-marital property which received the contribution.
 5        (d)  In  a  proceeding  for  dissolution  of  marriage or
 6    declaration of invalidity of marriage, or in a proceeding for
 7    disposition of property following dissolution of marriage  by
 8    a  court  which  lacked personal jurisdiction over the absent
 9    spouse or lacked jurisdiction to dispose of the property, the
10    court shall assign each spouse's non-marital property to that
11    spouse.  It also shall divide the  marital  property  without
12    regard  to marital misconduct in just proportions considering
13    all relevant factors, including:
14             (1)  the  contribution  of   each   party   to   the
15        acquisition,  preservation,  or  increase  or decrease in
16        value of the marital or non-marital  property,  including
17        the  contribution  of  a  spouse as a homemaker or to the
18        family unit;
19             (2)  the dissipation by each party of the marital or
20        non-marital property;
21             (3)  the value of  the  property  assigned  to  each
22        spouse;
23             (4)  the duration of the marriage;
24             (5)  the  relevant  economic  circumstances  of each
25        spouse  when  the  division  of  property  is  to  become
26        effective, including the  desirability  of  awarding  the
27        family  home, or the right to live therein for reasonable
28        periods, to the spouse having custody of the children;
29             (6)  any obligations and rights arising from a prior
30        marriage of either party;
31             (7)  any antenuptial agreement of the parties;
32             (8)  the age, health,  station,  occupation,  amount
33        and  sources of income, vocational skills, employability,
34        estate, liabilities, and needs of each of the parties;
                            -18-           LRB9003937EGfgam06
 1             (9)  the custodial provisions for any children;
 2             (10)  whether the apportionment is in lieu of or  in
 3        addition to maintenance;
 4             (11)  the  reasonable opportunity of each spouse for
 5        future acquisition of capital assets and income; and
 6             (12)  the tax consequences of the property  division
 7        upon   the   respective  economic  circumstances  of  the
 8        parties.
 9        (e)  Each spouse has a species of common ownership in the
10    marital  property  which  vests  at  the   time   dissolution
11    proceedings  are  commenced  and  continues  only  during the
12    pendency  of  the  action.   Any  such  interest  in  marital
13    property shall not encumber that property so as  to  restrict
14    its  transfer,  assignment  or conveyance by the title holder
15    unless such title holder is specifically enjoined from making
16    such transfer, assignment or conveyance.
17        (f)  In a  proceeding  for  dissolution  of  marriage  or
18    declaration  of invalidity of marriage or in a proceeding for
19    disposition of property following dissolution of marriage  by
20    a  court  that  lacked  personal jurisdiction over the absent
21    spouse or lacked jurisdiction to dispose of the property, the
22    court,  in  determining  the  value  of   the   marital   and
23    non-marital  property  for purposes of dividing the property,
24    shall value the property as of the  date  of  trial  or  some
25    other date as close to the date of trial as is practicable.
26        (g)  The  court  if  necessary to protect and promote the
27    best interests of the children may set aside a portion of the
28    jointly or separately  held  estates  of  the  parties  in  a
29    separate   fund   or  trust  for  the  support,  maintenance,
30    education, and general welfare of any  minor,  dependent,  or
31    incompetent  child of the parties.  In making a determination
32    under this subsection, the court may  consider,  among  other
33    things,  the conviction of a party of any of the offenses set
34    forth in Section 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13,  12-14,
                            -19-           LRB9003937EGfgam06
 1    12-14.1,  12-15, or 12-16 of the Criminal Code of 1961 if the
 2    victim is a child of one or both of the parties, and there is
 3    a need for, and cost of, care, healing and counseling for the
 4    child who is the victim of the crime.
 5        (h)  Unless specifically directed by a  reviewing  court,
 6    or  upon  good  cause  shown,  the  court shall not on remand
 7    consider any  increase  or  decrease  in  the  value  of  any
 8    "marital"  or  "non-marital"  property  occurring  since  the
 9    assessment of such property at the original trial or hearing,
10    but shall use only that assessment made at the original trial
11    or hearing.
12        (i)  The  court  may  make  such  judgments affecting the
13    marital  property  as  may  be  just  and  may  enforce  such
14    judgments by  ordering  a  sale  of  marital  property,  with
15    proceeds therefrom to be applied as determined by the court.
16        (j)  After proofs have closed in the final hearing on all
17    other  issues between the parties (or in conjunction with the
18    final hearing,  if  all  parties  so  stipulate)  and  before
19    judgment  is  entered, a party's petition for contribution to
20    fees and costs incurred in the proceeding shall be heard  and
21    decided, in accordance with the following provisions:
22             (1)  A  petition  for  contribution,  if  not  filed
23        before  the  final  hearing  on  other issues between the
24        parties, shall be filed no later than 30 days  after  the
25        closing  of  proofs  in  the final hearing or within such
26        other period as the court orders.
27             (2)  Any award of contribution to one party from the
28        other party shall be based on the criteria  for  division
29        of  marital  property  under  this  Section  503  and, if
30        maintenance has been awarded,  on  the  criteria  for  an
31        award of maintenance under Section 504.
32             (3)  The filing of a petition for contribution shall
33        not   be   deemed   to   constitute   a   waiver  of  the
34        attorney-client privilege between the  petitioning  party
                            -20-           LRB9003937EGfgam06
 1        and  current  or  former counsel; and such a waiver shall
 2        not  constitute  a  prerequisite   to   a   hearing   for
 3        contribution.    If   either   party's   presentation  on
 4        contribution, however, includes evidence within the scope
 5        of  the  attorney-client  privilege,  the  disclosure  or
 6        disclosures shall be narrowly construed and shall not  be
 7        deemed by the court to constitute a general waiver of the
 8        privilege   as   to  matters  beyond  the  scope  of  the
 9        presentation.
10             (4)  No finding on which  a  contribution  award  is
11        based  or  denied  shall  be  asserted against counsel or
12        former  counsel  for  purposes  of  any   hearing   under
13        subsection (c) or (e) of Section 508.
14             (5)  A  contribution  award  (payable  to either the
15        petitioning party or the party's counsel, or jointly,  as
16        the  court determines) may be in the form of either a set
17        dollar amount or a percentage of fees  and  costs  (or  a
18        portion of fees and costs) to be subsequently agreed upon
19        by  the  petitioning party and counsel or, alternatively,
20        thereafter determined in a hearing pursuant to subsection
21        (c) of Section 508 or previously or thereafter determined
22        in an independent  proceeding  under  subsection  (e)  of
23        Section 508.
24             (6)  The  changes  to  this Section 503 made by this
25        amendatory Act of 1996 apply to cases pending on or after
26        June 1, 1997, except as  otherwise  provided  in  Section
27        508.
28    (Source: P.A.  88-45;  89-428,  eff.  12-13-95;  89-462, eff.
29    5-29-96; 89-712, eff. 6-1-97.)
30        Section 99.  Effective date.  This Act takes effect  July
31    1, 1999 or 6 months after becoming law, whichever is later.".

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