SB 2437 — DISSOLUTION-INSURANCE POLICIES

SB2437 EngrossedEnrolled LRB100 16507 HEP 31639 b AN ACT concerning civil law.

(5) any judgment or property obtained by judgment awarded to a spouse from the other spouse except, however, when a spouse is required to sue the other spouse in order SB2437 EngrossedEnrolled - 2 - LRB100 16507 HEP 31639 b to obtain insurance coverage or otherwise recover from a third party and the recovery is directly related to amounts advanced by the marital estate, the judgment shall be considered marital property;

Property acquired prior to a marriage that would otherwise be non-marital property shall not be deemed to be marital property solely because the property was acquired in SB2437 EngrossedEnrolled - 3 - LRB100 16507 HEP 31639 b contemplation of marriage.

(2) For purposes of distribution of property pursuant to this Section, all pension benefits (including pension benefits under the Illinois Pension Code, defined benefit plans, defined contribution plans and accounts, individual retirement accounts, and non-qualified plans) acquired by or participated in by either spouse after the marriage and before a judgment of dissolution of marriage or legal separation or declaration of SB2437 EngrossedEnrolled - 4 - LRB100 16507 HEP 31639 b invalidity of the marriage are presumed to be marital property.

This presumption of marital property is overcome by a showing that the stock SB2437 EngrossedEnrolled - 5 - LRB100 16507 HEP 31639 b options or restricted stock or similar form of benefit were acquired by a method listed in subsection (a) of this Section.

(b-5)(1) As to any existing policy of life insurance insuring the life of either spouse, or any interest in such policy, that constitutes marital property, whether whole life, term life, group term life, universal life, or other form of life insurance policy, and whether or not the value is ascertainable, the court shall allocate ownership, death SB2437 EngrossedEnrolled - 6 - LRB100 16507 HEP 31639 b benefits or the right to assign death benefits, and the obligation for premium payments, if any, equitably between the parties at the time of the judgment for dissolution or declaration of invalidity of marriage.

(A) before payment of the proceeds to the designated SB2437 EngrossedEnrolled - 7 - LRB100 16507 HEP 31639 b beneficiary, the insurer receives written notice at the home office of the insurer from an interested person that the designation is not effective under paragraph (2);

(5) The provisions in paragraphs (2), (3) and (4) of this subsection (b-5) do not apply to life insurance policies subject to regulation under the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C.

100 et seq., the Federal Employee Group Life Insurance Act, 5 U.S.C.

8701 et seq., or any other federal law that preempts the application of those paragraphs.

(B) If marital and non-marital property are commingled into newly acquired property resulting in a loss of SB2437 Enrolled - 8 - LRB100 16507 HEP 31639 b 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 (c).

(2)(A) When one estate of property makes a contribution to another estate of property, the contributing estate shall be reimbursed from the estate receiving the SB2437 Engrossed - 8 - LRB100 16507 HEP 31639 b contribution notwithstanding any transmutation.

SB2437 Enrolled - 9 - LRB100 16507 HEP 31639 b (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 that 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 SB2437 Engrossed - 9 - LRB100 16507 HEP 31639 b marital misconduct in just proportions considering all relevant factors, including:

(ii) the notice of intent to claim dissipation shall contain, at a minimum, a date or period of time SB2437 Enrolled - 10 - LRB100 16507 HEP 31639 b during which the marriage began undergoing an irretrievable breakdown, an identification of the property dissipated, and a date or period of time during which the dissipation occurred;

(iii) a certificate or service of the notice of intent to claim dissipation shall be filed with the clerk of the court and be served pursuant to applicable SB2437 Engrossed - 10 - LRB100 16507 HEP 31639 b rules;

(8) the age, health, station, occupation, amount and sources of income, vocational skills, employability, SB2437 Enrolled - 11 - LRB100 16507 HEP 31639 b estate, liabilities, and needs of each of the parties;

and (12) the tax consequences of the property division upon SB2437 Engrossed - 11 - LRB100 16507 HEP 31639 b the respective economic circumstances of the parties.

(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, has the discretion to use the date of the trial or such other date as agreed upon by the parties, or ordered by the court within its discretion, for purposes of determining the value of assets or SB2437 Enrolled - 12 - LRB100 16507 HEP 31639 b property.

In making a determination SB2437 Engrossed - 12 - LRB100 16507 HEP 31639 b under this subsection, the court may consider, among other things, the conviction of a party of any of the offenses set forth in Section 11-1.20, 11-1.30, 11-1.40, 11-1.50, 11-1.60, 12-3.3, 12-4, 12-4.1, 12-4.2, 12-4.3, 12-13, 12-14, 12-14.1, 12-15, or 12-16, or Section 12-3.05 except for subdivision (a)(4) or (g)(1), of the Criminal Code of 1961 or the Criminal Code of 2012 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.

SB2437 Enrolled - 13 - LRB100 16507 HEP 31639 b (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 SB2437 Engrossed - 13 - LRB100 16507 HEP 31639 b the final hearing on other issues between the parties, shall be filed no later than 14 days after the closing of proofs in the final hearing or within such other period as the court orders.

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 SB2437 Enrolled - 14 - LRB100 16507 HEP 31639 b beyond the scope of the presentation.

(5) A contribution award (payable to either the petitioning party or the party's counsel, or jointly, as SB2437 Engrossed - 14 - LRB100 16507 HEP 31639 b 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.

If the court grants a petition brought under Section 2-1401 of the Code of Civil Procedure, then the court has the discretion to use the date of the trial or such other date as agreed upon SB2437 Enrolled - 15 - LRB100 16507 HEP 31639 b by the parties, or ordered by the court within its discretion, for purposes of determining the value of assets or property.

Counsel may examine as a witness any professional consulted by the court designated as SB2437 Engrossed - 15 - LRB100 16507 HEP 31639 b the court's witness.

In issuing an order under this subsection, the court shall take into consideration the well-being of the companion SB2437 Enrolled - 16 - LRB100 16507 HEP 31639 b animal.