Public Act 90-0731 of the 90th General Assembly

State of Illinois
Public Acts
90th General Assembly

[ Home ] [ Public Acts ] [ ILCS ] [ Search ] [ Bottom ]


Public Act 90-0731

HB1612 Enrolled                                LRB9003937WHmg

    AN ACT in relation to marital  property,  amending  named
Acts.

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

    Section 5.  The  Illinois  Pension  Code  is  amended  by
adding Section 1-119 as follows:

    (40 ILCS 5/1-119 new)
    Sec.   1-119.    Qualified  Illinois  Domestic  Relations
Orders.
    (a)  For the purposes of this Section:
         (1)  "Alternate  payee"  means  the  spouse,  former
    spouse,  child,  or  other  dependent  of  a  member,  as
    designated in a QILDRO.
         (2)  "Death benefit" means any  nonperiodic  benefit
    payable  upon  the death of a member to a survivor of the
    member  or  to  the   member's   estate   or   designated
    beneficiary,   including   any  refund  of  contributions
    following the member's death, whether or not the  benefit
    is so called under the applicable Article of this Code.
         (3)  "Disability  benefit"  means  any  periodic  or
    nonperiodic benefit payable to a disabled member based on
    occupational  or  nonoccupational  disability or disease,
    including any periodic or nonperiodic  increases  in  the
    benefit,  whether  or  not the benefit is so called under
    the applicable Article of this Code.
         (4)  "Member" means any person who  participates  in
    or  has service credits in a retirement system, including
    a person who is receiving or is  eligible  to  receive  a
    retirement  or  disability  benefit,  without  regard  to
    whether the person has withdrawn from service.
         (5)  "Member's  refund"  means  a return of all or a
    portion of a member's contributions that  is  elected  by
    the  member  (or  provided  by  operation  of law) and is
    payable before the member's death.
         (6)  "Qualified Illinois Domestic  Relations  Order"
    or "QILDRO" means an Illinois court order that creates or
    recognizes the existence of an alternate payee's right to
    receive  all  or a portion of a member's accrued benefits
    in a  retirement  system,  is  issued  pursuant  to  this
    Section  and  Section  503(b)(2) of the Illinois Marriage
    and  Dissolution  of  Marriage   Act,   and   meets   the
    requirements  of  this Section.  A QILDRO is not the same
    as a qualified domestic relations order  or  QDRO  issued
    pursuant  to  Section 414(p) of the Internal Revenue Code
    of 1986.  The requirements of paragraphs (2) and  (3)  of
    that  Section  do  not  apply to orders issued under this
    Section  and  shall  not  be  deemed  a  guide   to   the
    interpretation  of  this Section; a QILDRO is intended to
    be a domestic  relations  order  within  the  meaning  of
    paragraph (11) of that Section.
         (7)  "Regular  payee"  means  the  person  to whom a
    benefit would be payable in the absence of  an  effective
    QILDRO.
         (8)  "Retirement  benefit"  means  any  periodic  or
    nonperiodic  benefit payable to a retired member based on
    age or service, or on  the  amounts  accumulated  to  the
    credit  of  the member for retirement purposes, including
    any periodic or nonperiodic  increases  in  the  benefit,
    whether  or  not  the  benefit  is  so  called  under the
    applicable Article of this Code.
         (9)  "Retirement  system"  or  "system"  means   any
    retirement system, pension fund, or other public employee
    retirement benefit plan that is maintained or established
    under any of Articles 2 through 18 of this Code.
         (10)  "Surviving  spouse"  means  the  spouse  of  a
    member at the time of the member's death.
         (11)  "Survivor's   benefit"   means   any  periodic
    benefit payable to a surviving spouse, child, parent,  or
    other  survivor  of  a  deceased  member,  including  any
    periodic or nonperiodic increases in the benefit, whether
    or  not  the  benefit  is  so called under the applicable
    Article of this Code.
    (b) (1)  An Illinois court of competent jurisdiction in a
proceeding for declaration of invalidity of  marriage,  legal
separation,  or dissolution of marriage that provides for the
distribution of property,  or  any  proceeding  to  amend  or
enforce  such  a property distribution, may order that all or
any part of any  (i)  retirement  benefit  or  (ii)  member's
refund  payable to or on behalf of the member be instead paid
by the retirement system to a designated alternate payee.
    (2)  An order issued under this Section provides only for
the diversion to  an  alternate  payee  of  certain  benefits
otherwise   payable   by  the  retirement  system  under  the
provisions of this Code.  The existence of a QILDRO shall not
cause the retirement system to pay any benefit, or any amount
of benefit, to an alternate payee that would  not  have  been
payable  by  the  system to a regular payee in the absence of
the QILDRO.
    (3)  A QILDRO shall not affect the vesting,  accrual,  or
amount  of any benefit, nor the date or conditions upon which
any benefit becomes payable, nor the right of the  member  or
the   member's  survivors  to  make  any  election  otherwise
authorized under this Code, except as provided in subsections
(i) and (j).
    (4)  A QILDRO shall not apply to or affect the payment of
any survivor's benefit, death  benefit,  disability  benefit,
life insurance benefit, or health insurance benefit.
    (c) (1)  A   QILDRO  must  contain  the  name,  residence
address, and social security number of the member and of  the
alternate  payee  and  must identify the retirement system to
which it is directed and the court issuing the order.
    (2)  A QILDRO must  specify  each  benefit  to  which  it
applies,  and it must specify the amount of the benefit to be
paid  to  the  alternate  payee,  which  in  the  case  of  a
nonperiodic benefit shall be expressed as  a  dollar  amount,
and in the case of a periodic benefit shall be expressed as a
dollar amount per month.
    (3)  With  respect to each benefit to which it applies, a
QILDRO must specify when the order will take effect.  In  the
case of a periodic benefit that is being paid at the time the
order  is received, a QILDRO shall take effect immediately or
on a specified later date; if it takes effect immediately, it
shall become effective on  the  first  benefit  payment  date
occurring at least 30 days after the order is received by the
retirement  system.   In  the  case  of  any other benefit, a
QILDRO shall take effect when the  benefit  becomes  payable.
However, in no event shall a QILDRO apply to any benefit paid
by  the  retirement system before or within 30 days after the
order is received.  A retirement system may  adopt  rules  to
prorate  the  amount of the first and final periodic payments
to an alternate payee.
    (4)  A QILDRO must also contain any  provisions  required
under subsection (n) or (p).
    (d) (1)  An  order issued under this Section shall not be
implemented unless a certified copy of  the  order  has  been
filed  with the retirement system.  The system shall promptly
notify the member and the alternate payee by first class mail
of its receipt of the order.
    (2)  Neither the retirement system, nor  its  board,  nor
any  of  its  employees  shall  be  liable to the member, the
regular payee, or any  other  person  for  any  amount  of  a
benefit  that  is paid in good faith to an alternate payee in
accordance with a QILDRO.
    (3)  At the time the order is submitted to the retirement
system, it  shall  be  accompanied  by  a  nonrefundable  $50
processing  fee  payable to the retirement system, to be used
by the system to defer any administrative costs  arising  out
of the implementation of the QILDRO.
    (e) (1)  Each   alternate   payee   is   responsible  for
maintaining a current residence  address  on  file  with  the
retirement  system.  The retirement system shall have no duty
to attempt to locate any alternate payee by any  means  other
than  sending written notice to the last known address of the
alternate payee on file with the system.
    (2)  In the  event  that  the  system  cannot  locate  an
alternate  payee  when  a benefit becomes payable, the system
shall hold the amount of the benefit payable to the alternate
payee and make payment to the alternate payee if he or she is
located within the following  180  days.   If  the  alternate
payee  has not been located within 180 days from the date the
benefit becomes payable, the system shall pay the benefit and
the amounts held to the  regular  payee.   If  the  alternate
payee  is  subsequently  located,  the system shall thereupon
implement the QILDRO, but the interest of the alternate payee
in any amounts already paid to the  regular  payee  shall  be
extinguished.   Amounts  held under this subsection shall not
bear interest.
    (f) (1)  If the amount of a benefit that is specified  in
a  QILDRO   for  payment  to  an  alternate payee exceeds the
actual amount of  that  benefit  payable  by  the  retirement
system,  the  excess  shall  be  disregarded.  The retirement
system shall have no liability to any alternate payee or  any
other person for the disregarded amounts.
    (2)  In  the  event of multiple QILDROs against a member,
the retirement system shall honor all of the QILDROs  to  the
extent  possible.   However, if the total amount of a benefit
to be paid to alternate payees under all  QILDROs  in  effect
against  the member exceeds the actual amount of that benefit
payable by the system, the QILDROs shall be satisfied in  the
order  of their receipt by the system until the amount of the
benefit is exhausted, and shall not  be  adjusted  pro  rata.
Any  amounts  that  cannot  be  paid due to exhaustion of the
benefit shall remain unpaid, and the retirement system  shall
have  no liability to any alternate payee or any other person
for such amounts.
    (3)  A modification of a QILDRO shall be filed  with  the
retirement  system  in  the  same  manner as a new QILDRO.  A
modification that does not increase the amount of any benefit
payable to the alternate  payee,  and  does  not  expand  the
QILDRO  to  affect any benefit not affected by the unmodified
QILDRO,  does  not  affect  the  priority  of  payment  under
subdivision (f)(2); the priority of payment of a QILDRO  that
has  been  modified  to  increase  the  amount of any benefit
payable to the alternate payee, or to expand  the  QILDRO  to
affect a benefit not affected by the unmodified QILDRO, shall
be  based  on  the  date  on  which  the  system receives the
modification of the QILDRO.
    (g) (1)  Upon the death of the alternate  payee  under  a
QILDRO,  the  QILDRO  shall expire and cease to be effective,
and in the absence of another QILDRO, the  right  to  receive
any affected benefit shall revert to the regular payee.
    (2)  All  QILDROs relating to a member's participation in
a particular retirement system shall expire and cease  to  be
effective  upon  the  issuance  of  a  member's  refund  that
terminates  the  member's  participation  in  that retirement
system, without regard to whether the refund was paid to  the
member  or  to an alternate payee under a QILDRO.  An expired
QILDRO shall not be automatically revived by  any  subsequent
return by the member to service under that retirement system.
    (h) (1)  Within  45  days after receiving a subpoena from
any party to a proceeding for declaration  of  invalidity  of
marriage,  legal  separation,  or  dissolution of marriage in
which a QILDRO may be issued, or after  receiving  a  request
from  the member, a retirement system shall issue a statement
of a member's accumulated  contributions,  accrued  benefits,
and   other   interests  in  the  plan  administered  by  the
retirement system based on the data on file with  the  system
on  the  date  the  subpoena is received, and of any relevant
procedures, rules, or modifications to the model QILDRO  form
that have been adopted by the retirement system.
    (2)  In  no event shall the retirement system be required
to furnish to any person  an  actuarial  opinion  as  to  the
present value of the member's benefits or other interests.
    (3)  The  papers, entries, and records, or parts thereof,
of any retirement system may be proved  by  a  copy  thereof,
certified  under the signature of the secretary of the system
or other duly appointed keeper of the records of  the  system
and the corporate seal, if any.
    (i)  In   a  retirement  system  in  which  a  member  or
beneficiary is required to apply to the system for payment of
a benefit,  the  required  application  may  be  made  by  an
alternate  payee who is entitled to all of that benefit under
a  QILDRO,  provided  that  all  other   qualifications   and
requirements have been met.  However, the alternate payee may
not  make the required application for a member's refund or a
retirement benefit if the member  is  in  active  service  or
below   the   minimum   age  for  receiving  an  undiscounted
retirement annuity in the retirement system that has received
the QILDRO or in any other retirement  system  in  which  the
member  has  creditable  service  and  in  which the member's
rights under the Retirement Systems Reciprocal Act  would  be
affected as a result of the alternate payee's application for
a member's refund or retirement benefit.
    (j) (1)  So  long as there is in effect a QILDRO relating
to a member's retirement benefit, the affected member may not
elect a form of payment that has the  effect  of  diminishing
the  amount  of  the  payment to which any alternate payee is
entitled, unless the alternate payee  has  consented  to  the
election  in writing and this consent has been filed with the
retirement system.
    (2)  If a member attempts to make an election  prohibited
under  subdivision (j)(1), the retirement system shall reject
the election and advise the member of the need to obtain  the
alternate payee's consent.
    (3)  If   a  retirement  system  discovers  that  it  has
mistakenly allowed an election prohibited  under  subdivision
(j)(1),   it  shall  thereupon  disallow  that  election  and
recalculate any benefits affected  thereby.   If  the  system
determines that an amount paid to a regular payee should have
been  paid  to  an  alternate  payee,  the  system  shall, if
possible, recoup the amounts as provided in subsection (k) of
this Section.
    (k)  In the event that a regular payee  or  an  alternate
payee  is  overpaid,  the  retirement system shall recoup the
amounts by deducting the overpayment from future payments and
making payment to the  other  payee.   The  system  may  make
deductions  for  recoupment over a period of time in the same
manner as is provided by law or rule for  the  recoupment  of
other   amounts   incorrectly  disbursed  by  the  system  in
instances not involving  a  QILDRO.   The  retirement  system
shall incur no liability to either the alternate payee or the
regular  payee as a result of any payment made in good faith,
regardless of  whether  the  system  is  able  to  accomplish
recoupment.
    (l) (1)  A   retirement   system  that  has,  before  the
effective date of this Section, received  and  implemented  a
domestic relations order that directs payment of a benefit to
a  person  other  than  the  regular  payee  may  continue to
implement that order, and shall not be liable to the  regular
payee for any amounts paid in good faith to that other person
in accordance with the order.
    (2)  A  domestic  relations  order directing payment of a
benefit to a person other than the  regular  payee  that  was
issued  by a court but not implemented by a retirement system
prior to the effective date of this Section  shall  be  void.
However,  a  person who is the beneficiary or alternate payee
of a domestic relations order that  is  rendered  void  under
this  subsection may petition the court that issued the order
for an amended order that complies with this Section.
    (m) (1)  In accordance with Article XIII,  Section  5  of
the  Illinois Constitution, which prohibits the impairment or
diminishment of benefits granted under this  Code,  a  QILDRO
issued  against  a  member of a retirement system established
under an Article of this Code that  exempts  the  payment  of
benefits or refunds from attachment, garnishment, judgment or
other  legal  process  shall  not  be  effective  without the
written  consent  of  the  member   if   the   member   began
participating  in  the  retirement  system  on  or before the
effective date of this Section.  That  consent  must  specify
the  retirement  system, the court case number, and the names
and social security numbers of the member and  the  alternate
payee.   The  consent  must  accompany  the QILDRO when it is
filed  with  the  retirement   system,   and   must   be   in
substantially the following form:

                CONSENT TO ISSUANCE OF QILDRO

Court Case Number: ....................
Member's Social Security Number: ........................
Alternate payee's Social Security Number: ...............
    I,  (name),  a  member of the (retirement system), hereby
consent to the issuance  of  a  Qualified  Illinois  Domestic
Relations  Order.  I understand that under the Order, certain
benefits that would otherwise be payable  to  me,  or  to  my
surviving  spouse or estate, will instead be payable to (name
of alternate payee).  I also  understand  that  my  right  to
elect  certain  forms  of payment of my retirement benefit or
member's refund may be limited as a result of the Order.
    DATED:.......................
    SIGNED:......................

    (2)  A member's consent to the issuance of a QILDRO shall
be irrevocable, and shall apply to any QILDRO  that  pertains
to  the  alternate  payee  and retirement system named in the
consent.
    (n)  An order issued  under  this  Section  shall  be  in
substantially  the  following  form  (omitting any provisions
that are not applicable):

         QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

    THIS CAUSE coming before the Court for the purpose of the
entry of a Qualified Illinois Domestic Relations Order  under
the provisions of Section 1-119 of the Illinois Pension Code,
the  Court  having  jurisdiction  over  the  parties  and the
subject matter hereof;  the Court finding  that  one  of  the
parties to this proceeding is a member of a retirement system
subject  to  Section 1-119 of the Illinois Pension Code, this
Order is entered to implement  a  division  of  that  party's
interest  in the retirement system; and the Court being fully
advised;
    IT IS HEREBY ORDERED AS FOLLOWS:
    (1)  The definitions  and  other  provisions  of  Section
1-119  of  the Illinois Pension Code are adopted by reference
and made a part of this Order.
    (2)  Identification of Retirement System and parties:
         Retirement System: (name and address)
         Member: (name, residence address and social security
    number)
         Alternate payee: (name, residence address and social
    security number)
    (3)  The  Retirement  System  shall  pay  the   indicated
amounts  of the following specified benefits to the alternate
payee under the following terms and conditions:
         (i)  Of  the  member's   retirement   benefit,   the
    Retirement  System  shall  pay  to  the  alternate  payee
    $......  per  month, beginning (if the benefit is already
    being paid, either immediately or on  a  specified  later
    date;  otherwise,  on  the  date  the  retirement benefit
    commences),  and  ending  upon  the  termination  of  the
    retirement benefit or the death of the  alternate  payee,
    whichever occurs first.
         (ii)  Of  any  member's refund that becomes payable,
    the Retirement System shall pay to  the  alternate  payee
    $...... when the member's refund becomes payable.
    (4)  In  accordance  with subsection (j) of Section 1-119
of the Illinois Pension Code, so long as this  QILDRO  is  in
effect,  the  member  may  not elect a form of payment of the
retirement benefit that has the  effect  of  diminishing  the
amount  of  the  payment  to  which  the  alternate  payee is
entitled, unless the alternate payee  has  consented  to  the
election  in writing and this consent has been filed with the
retirement system.
    (5)  If the member began participating in the  Retirement
System  before the effective date of this Section, this Order
shall not take  effect  unless  accompanied  by  the  written
consent  of  the  member  as required under subsection (m) of
Section 1-119 of the Illinois Pension Code.
    (6)  The Court retains jurisdiction to modify this Order.

    DATED:.......................

    SIGNED:......................

    (o) (1)  A court in Illinois that  has  issued  a  QILDRO
shall  retain  jurisdiction  of  all  issues  relating to the
modification of the QILDRO.  The  Administrative  Review  Law
and the rules adopted pursuant thereto shall govern and apply
to   all   proceedings   for   judicial   review   of   final
administrative  decisions  of  the  board  of trustees of the
retirement system arising under this Section.
    (2)  The term "administrative decision" is defined as  in
Section  3-101 of the Code of Civil Procedure.  The venue for
review under the Administrative Review Law shall be the  same
as   is   provided  by  law  for  judicial  review  of  other
administrative decisions of the retirement system.
    (p) (1)  Each retirement system may adopt any  procedures
or   rules   that  it  deems  necessary  or  useful  for  the
implementation of this Section.
    (2)  Each retirement system may by rule modify the  model
QILDRO  form  provided  in  subsection  (n)  or  require that
additional information be included in  QILDROs  presented  to
the  system,  as  may  be  necessary to meet the needs of the
retirement system.

    Section 10.  The Illinois  Marriage  and  Dissolution  of
Marriage  Act  is amended by changing Sections 452 and 503 as
follows:

    (750 ILCS 5/452)
    Sec.  452.  Petition.   The  parties  to  a   dissolution
proceeding   may   file   a  joint  petition  for  simplified
dissolution  if  they  certify  that  all  of  the  following
conditions exist when the proceeding is commenced:
         (a)  Neither party is dependent on the  other  party
    for  support  or each party is willing to waive the right
    to support; and the parties understand that  consultation
    with  attorneys  may  help them determine eligibility for
    spousal support.
         (b)  Either party has met the residency  requirement
    of Section 401 of this Act.
         (c)  Irreconcilable   differences  have  caused  the
    irretrievable breakdown of the marriage and  the  parties
    have  been  separated  6  months  or  more and efforts at
    reconciliation  have  failed  or   future   attempts   at
    reconciliation would be impracticable and not in the best
    interests of the family.
         (d)  No  children  were  born of the relationship of
    the  parties  or  adopted  by  the  parties  during   the
    marriage, and the wife, to her knowledge, is not pregnant
    by the husband.
         (e)  The  duration of the marriage does not exceed 8
     5  years.
         (f)  Neither  party  has  any   interest   in   real
    property.
         (g)  The parties waive any rights to maintenance.
         (h)  The  total  fair  market  value  of all marital
    property, after deducting all encumbrances, is less  than
    $10,000,  $5,000 and the combined gross annualized income
    from all sources is less than $35,000, and neither  party
    has  a gross annualized income from all sources in excess
    of $20,000 $25,000.
         (i)  The parties have disclosed to  each  other  all
    assets  and  their  tax  returns  for  all  years  of the
    marriage.
         (j)  The parties have executed a  written  agreement
    dividing  all  assets  in  excess  of  $100  in value and
    allocating  responsibility  for  debts  and   liabilities
    between the parties.
(Source: P.A. 88-39.)

    (750 ILCS 5/503) (from Ch. 40, par. 503)
    Sec. 503.  Disposition of property.
    (a)  For  purposes  of this Act, "marital property" means
all property acquired by  either  spouse  subsequent  to  the
marriage,   except   the   following,   which   is  known  as
"non-marital property":
         (1)  property acquired by gift, legacy or descent;
         (2)  property  acquired  in  exchange  for  property
    acquired before the marriage or in exchange for  property
    acquired by gift, legacy or descent;
         (3)  property  acquired by a spouse after a judgment
    of legal separation;
         (4)  property excluded by  valid  agreement  of  the
    parties;
         (5)  any  judgment  or property obtained by judgment
    awarded to a spouse from the other spouse;
         (6)  property acquired before the marriage;
         (7)  the increase in value of property acquired by a
    method listed in  paragraphs  (1)  through  (6)  of  this
    subsection,  irrespective of whether the increase results
    from a  contribution  of  marital  property,  non-marital
    property,  the personal effort of a spouse, or otherwise,
    subject  to  the  right  of  reimbursement  provided   in
    subsection (c) of this Section; and
         (8)  income  from  property  acquired  by  a  method
    listed  in paragraphs (1) through (7)  of this subsection
    if the income is not attributable to the personal  effort
    of a spouse.
    (b)(1)  For purposes of distribution of property pursuant
to this Section, all property acquired by either spouse after
the marriage and before a judgment of dissolution of marriage
or   declaration   of   invalidity   of  marriage,  including
non-marital  property   transferred   into   some   form   of
co-ownership  between  the spouses, is presumed to be marital
property, regardless of whether title is held individually or
by the spouses in some form of  co-ownership  such  as  joint
tenancy,  tenancy  in  common,  tenancy  by  the entirety, or
community property.  The presumption of marital  property  is
overcome  by  a  showing  that the property was acquired by a
method listed in subsection (a) of this Section.
    (2)  For purposes of distribution of property pursuant to
this  Section,  all  pension  benefits   (including   pension
benefits  under the Illinois Pension Code) acquired by either
spouse  after  the  marriage  and  before   a   judgment   of
dissolution  of  marriage or declaration of invalidity of the
marriage are presumed to be marital property,  regardless  of
which   spouse   participates   in  the  pension  plan.   The
presumption that these pension benefits are marital  property
is  overcome  by  a  showing  that  the pension benefits were
acquired by  a  method  listed  in  subsection  (a)  of  this
Section.  The right to a division of pension benefits in just
proportions  under  this Section is enforceable under Section
1-119 of the Illinois Pension Code.
    The value of pension  benefits  in  a  retirement  system
subject  to  the Illinois Pension Code shall be determined in
accordance with the valuation procedures established  by  the
retirement system.
    The  recognition  of pension benefits as marital property
and the division of those benefits pursuant  to  a  Qualified
Illinois Domestic Relations Order shall not be deemed to be a
diminishment,  alienation,  or  impairment of those benefits.
The division of pension benefits is an allocation of property
in which each spouse has a species of common ownership.
    (c)  Commingled marital and non-marital property shall be
treated in the following manner, unless otherwise  agreed  by
the spouses:
         (1)  When   marital  and  non-marital  property  are
    commingled by contributing one estate  of  property  into
    another   resulting   in   a  loss  of  identity  of  the
    contributed   property,   the   classification   of   the
    contributed  property  is  transmuted   to   the   estate
    receiving  the contribution, subject to the provisions of
    paragraph  (2)  of  this  subsection;  provided  that  if
    marital and  non-marital  property  are  commingled  into
    newly  acquired  property resulting in a loss of identity
    of the  contributing  estates,  the  commingled  property
    shall  be  deemed transmuted to marital property, subject
    to the provisions of paragraph (2) of this subsection.
         (2)  When   one   estate   of   property   makes   a
    contribution to another estate of  property,  or  when  a
    spouse   contributes   personal   effort  to  non-marital
    property, the contributing  estate  shall  be  reimbursed
    from    the    estate    receiving    the    contribution
    notwithstanding any transmutation; provided, that no such
    reimbursement   shall   be   made   with   respect  to  a
    contribution  which  is  not  retraceable  by  clear  and
    convincing evidence, or was a gift, or, in the case of  a
    contribution   of   personal   effort   of  a  spouse  to
    non-marital property, unless the  effort  is  significant
    and   results   in   substantial   appreciation   of  the
    non-marital property.  Personal effort of a spouse  shall
    be  deemed  a  contribution  by  the marital estate.  The
    court may provide for reimbursement out  of  the  marital
    property  to be divided or by imposing a lien against the
    non-marital property which received the contribution.
    (d)  In a  proceeding  for  dissolution  of  marriage  or
declaration of invalidity of marriage, or in a proceeding for
disposition  of property following dissolution of marriage by
a court which lacked personal jurisdiction  over  the  absent
spouse or lacked jurisdiction to dispose of the property, the
court shall assign each spouse's non-marital property to that
spouse.   It  also  shall divide the marital property without
regard to marital misconduct in just proportions  considering
all relevant factors, including:
         (1)  the   contribution   of   each   party  to  the
    acquisition, preservation, or  increase  or  decrease  in
    value  of  the marital or non-marital property, including
    the contribution of a spouse as a  homemaker  or  to  the
    family unit;
         (2)  the dissipation by each party of the marital or
    non-marital property;
         (3)  the  value  of  the  property  assigned to each
    spouse;
         (4)  the duration of the marriage;
         (5)  the relevant  economic  circumstances  of  each
    spouse  when  the  division  of  property  is  to  become
    effective,  including  the  desirability  of awarding the
    family home, or the right to live therein for  reasonable
    periods, to the spouse having custody of the children;
         (6)  any obligations and rights arising from a prior
    marriage of either party;
         (7)  any antenuptial agreement of the parties;
         (8)  the  age,  health,  station, occupation, amount
    and sources of income, vocational skills,  employability,
    estate, liabilities, and needs of each of the parties;
         (9)  the custodial provisions for any children;
         (10)  whether  the apportionment is in lieu of or in
    addition to maintenance;
         (11)  the reasonable opportunity of each spouse  for
    future acquisition of capital assets and income; and
         (12)  the  tax consequences of the property division
    upon  the  respective  economic  circumstances   of   the
    parties.
    (e)  Each spouse has a species of common ownership in the
marital   property   which  vests  at  the  time  dissolution
proceedings are  commenced  and  continues  only  during  the
pendency  of  the  action.   Any  such  interest  in  marital
property  shall  not encumber that property so as to restrict
its transfer, assignment or conveyance by  the  title  holder
unless such title holder is specifically enjoined from making
such transfer, assignment or conveyance.
    (f)  In  a  proceeding  for  dissolution  of  marriage or
declaration of invalidity of marriage or in a proceeding  for
disposition  of property following dissolution of marriage by
a court that lacked personal  jurisdiction  over  the  absent
spouse or lacked jurisdiction to dispose of the property, the
court,   in   determining   the  value  of  the  marital  and
non-marital property for purposes of dividing  the  property,
shall  value  the  property  as  of the date of trial or some
other date as close to the date of trial as is practicable.
    (g)  The court if necessary to protect  and  promote  the
best interests of the children may set aside a portion of the
jointly  or  separately  held  estates  of  the  parties in a
separate  fund  or  trust  for  the   support,   maintenance,
education,  and  general  welfare of any minor, dependent, or
incompetent child of the parties.  In making a  determination
under  this  subsection,  the court may consider, among other
things, the conviction of a party of any of the offenses  set
forth  in Section 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14,
12-14.1, 12-15, or 12-16 of the Criminal Code of 1961 if  the
victim is a child of one or both of the parties, and there is
a need for, and cost of, care, healing and counseling for the
child who is the victim of the crime.
    (h)  Unless  specifically  directed by a reviewing court,
or upon good cause shown,  the  court  shall  not  on  remand
consider  any  increase  or  decrease  in  the  value  of any
"marital"  or  "non-marital"  property  occurring  since  the
assessment of such property at the original trial or hearing,
but shall use only that assessment made at the original trial
or hearing.
    (i)  The court may  make  such  judgments  affecting  the
marital  property  as  may  be  just  and  may  enforce  such
judgments  by  ordering  a  sale  of  marital  property, with
proceeds therefrom to be applied as determined by the court.
    (j)  After proofs have closed in the final hearing on all
other issues between the parties (or in conjunction with  the
final  hearing,  if  all  parties  so  stipulate)  and before
judgment is entered, a party's petition for  contribution  to
fees  and costs incurred in the proceeding shall be heard and
decided, in accordance with the following provisions:
         (1)  A  petition  for  contribution,  if  not  filed
    before the final hearing  on  other  issues  between  the
    parties,  shall  be filed no later than 30 days after the
    closing of proofs in the final  hearing  or  within  such
    other period as the court orders.
         (2)  Any award of contribution to one party from the
    other  party  shall be based on the criteria for division
    of marital  property  under  this  Section  503  and,  if
    maintenance  has  been  awarded,  on  the criteria for an
    award of maintenance under Section 504.
         (3)  The filing of a petition for contribution shall
    not  be  deemed   to   constitute   a   waiver   of   the
    attorney-client  privilege  between the petitioning party
    and current or former counsel; and such  a  waiver  shall
    not   constitute   a   prerequisite   to  a  hearing  for
    contribution.   If   either   party's   presentation   on
    contribution, however, includes evidence within the scope
    of  the  attorney-client  privilege,  the  disclosure  or
    disclosures  shall be narrowly construed and shall not be
    deemed by the court to constitute a general waiver of the
    privilege  as  to  matters  beyond  the  scope   of   the
    presentation.
         (4)  No  finding  on  which  a contribution award is
    based or denied shall  be  asserted  against  counsel  or
    former   counsel   for  purposes  of  any  hearing  under
    subsection (c) or (e) of Section 508.
         (5)  A contribution award  (payable  to  either  the
    petitioning  party or the party's counsel, or jointly, as
    the court determines) may be in the form of either a  set
    dollar  amount  or  a  percentage of fees and costs (or a
    portion of fees and costs) to be subsequently agreed upon
    by the petitioning party and counsel  or,  alternatively,
    thereafter determined in a hearing pursuant to subsection
    (c) of Section 508 or previously or thereafter determined
    in  an  independent  proceeding  under  subsection (e) of
    Section 508.
         (6)  The changes to this Section 503  made  by  this
    amendatory Act of 1996 apply to cases pending on or after
    June  1,  1997,  except  as otherwise provided in Section
    508.
(Source: P.A. 88-45;  89-428,  eff.  12-13-95;  89-462,  eff.
5-29-96; 89-712, eff. 6-1-97.)

    Section  99.  Effective date.  This Act takes effect July
1, 1999 or 6 months after becoming law, whichever is later.

[ Top ]