“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffett. Lots of people have followed Warren Buffet’s advice by saving and investing so their money can earn them an independent income one day. These investments generate interest, dividends and other kids of income. However, even the wisest investor will have a personal life and, sometimes, that means divorce. How is interest, dividend and other income treated in an Illinois divorce? Asset Division In An Illinois Divorce Assets that generate income are divisible in a divorce if the assets are marital property. After the designation of an asset being “marital property” the Illinois divorce court “shall divide the marital property” 750 ILCS 5/503(d) Non-marital property is property that was acquired before the marriage or received as a gift or inheritance. Non-marital property stays with the spouse whose name the non-marital property is in. “[T]he court shall assign each spouse’s non-marital property to that spouse.” 750 ILCS 5/503(d) Dividing the assets is not the end of the story, however. If those assets generate some kind of income via rents, interest, dividends, etc., then that income must be factored into any maintenance or child support calculations. Income From Assets In An Illinois Divorce In determining maintenance (formerly known as alimony) the courts will consider “the income and property of each party” 750 ILCS 5/501(a)(1). Child support amount is similarly arrived at based on income in that child support in that the Illinois statute states its goal is “to allocate the amount of child support to be paid by each parent based upon a parent’s net income” But what is “income” for the purposes of a divorce? Income is “[t]he money or other form of payment that one receives, usu[ally] periodically, from employment, business, investments, royalties, gifts and the like.” Black’s Law Dictionary 778 (8th ed. 2004) The Illinois child support statute agrees that income can come from a broad range of sources. “”[G]ross income” means the total of all income from all sources” 750 ILCS 5/505(a)(2)(A) The Illinois maintenance statute reads similarly and directs us back to the child support statute should there be any questions. “”gross income” means all income from all sources, within the scope of that phrase in [the child support section] of this Act” For the purposes of both child support and maintenance gross income is a factor […]
from Russell D. Knight | Family Lawyer Chicago https://rdklegal.com/interest-and-dividend-income-in-an-illinois-divorce/
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