Marital Property

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.

    (3)  For  purposes  of  distribution of property under this Section,

all stock options granted to either spouse after the marriage and before

a judgment of dissolution of marriage or declaration  of  invalidity  of

marriage,  whether  vested  or  non-vested  or  whether  their  value is

ascertainable, are presumed to be marital property.  This presumption of

marital property is overcome by a showing that the  stock  options  were

acquired  by  a  method  listed  in subsection (a) of this Section.  The

court shall allocate stock options between the parties at  the  time  of

the  judgment of dissolution of marriage or declaration of invalidity of

marriage recognizing that the value of the stock options may not be then

determinable and that the actual division of the options may  not  occur

until  a future date.  In making the allocation between the parties, the

court shall consider, in addition to the factors set forth in subsection

(d) of this Section, the following:

         (i)  All circumstances underlying the grant of the stock option

    including but not  limited  to  whether  the  grant  was  for  past,

    present, or future efforts, or any combination thereof.

         (ii)  The  length  of  time from the grant of the option to the

    time the option is exercisable.

    (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 12-3.3, 12-4, 12-4.1, 12-4.2,  12-4.3,  12-13,  12-14,  12-14.1,

12-15, or 12-16 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. 91-445, eff. 1-1-00; 92-306, eff. 1-1-02.)