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90_HB2152
735 ILCS 5/12-112 from Ch. 110, par. 12-112
750 ILCS 5/505 from Ch. 40, par. 505
750 ILCS 45/15 from Ch. 40, par. 2515
Amends the Illinois Marriage and Dissolution of Marriage
Act and the Illinois Parentage Act of 1984 to provide that
the court may pierce the ownership veil of an entity to
discover assets of a non-custodial parent held in the name of
that entity if there is a financial unity of interest between
the two. Provides that the court may order discovery of the
assets and compel the application of any discovered assets
toward payment on the judgment for support if the
non-custodial parent and the entity maintain records
together, fail to maintain an arms length relationship
between themselves with regard to any assets, or the
non-custodial parent transfers assets to the entity with the
intent to perpetrate a fraud on the custodial parent. Amends
the Code of Civil Procedure in provisions regarding
enforcement of judgments to provide for enforcement against
assets discovered under this procedure.
LRB9004203SMdv
LRB9004203SMdv
1 AN ACT regarding enforcement of child support orders.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Code of Civil Procedure is amended by
5 changing Section 12-112 as follows:
6 (735 ILCS 5/12-112) (from Ch. 110, par. 12-112)
7 Sec. 12-112. What liable to enforcement. All the lands,
8 tenements, real estate, goods and chattels (except such as is
9 by law declared to be exempt) of every person against whom
10 any judgment has been or shall be hereafter entered in any
11 court, for any debt, damages, costs, or other sum of money,
12 shall be liable to be sold upon such judgment. Any real
13 property, or any beneficial interest in a land trust, held in
14 tenancy by the entirety shall not be liable to be sold upon
15 judgment entered on or after October 1, 1990 against only one
16 of the tenants. However, any income from such property shall
17 be subject to garnishment as provided in Part 7 of this
18 Article XII, whether judgment has been entered against one or
19 both of the tenants.
20 If the court authorizes the piercing of the ownership
21 veil pursuant to Section 505 of the Illinois Marriage and
22 Dissolution of Marriage Act or Section 15 of the Illinois
23 Parentage Act of 1984, any assets determined to be those of
24 the non-custodial parent, although not held in name of the
25 non-custodial parent, shall be subject to enforcement of the
26 child support judgment under this Section as assets of the
27 non-custodial parent.
28 This amendatory Act of 1995 is declarative of existing
29 law.
30 (Source: P.A. 89-88, eff. 6-30-95; 89-438, eff. 12-15-95.)
-2- LRB9004203SMdv
1 Section 10. The Illinois Marriage and Dissolution of
2 Marriage Act is amended by changing Section 505 as follows:
3 (750 ILCS 5/505) (from Ch. 40, par. 505)
4 Sec. 505. Child support; contempt; penalties.
5 (a) In a proceeding for dissolution of marriage, legal
6 separation, declaration of invalidity of marriage, a
7 proceeding for child support following dissolution of the
8 marriage by a court which lacked personal jurisdiction over
9 the absent spouse, a proceeding for modification of a
10 previous order for child support under Section 510 of this
11 Act, or any proceeding authorized under Section 501 or 601 of
12 this Act, the court may order either or both parents owing a
13 duty of support to a child of the marriage to pay an amount
14 reasonable and necessary for his support, without regard to
15 marital misconduct. The duty of support owed to a minor
16 child includes the obligation to provide for the reasonable
17 and necessary physical, mental and emotional health needs of
18 the child.
19 (1) The Court shall determine the minimum amount of
20 support by using the following guidelines:
21 Number of Children Percent of Supporting Party's
22 Net Income
23 1 20%
24 2 25%
25 3 32%
26 4 40%
27 5 45%
28 6 or more 50%
29 (2) The above guidelines shall be applied in each
30 case unless the court makes a finding that application of
31 the guidelines would be inappropriate, after considering
32 the best interests of the child in light of evidence
33 including but not limited to one or more of the following
-3- LRB9004203SMdv
1 relevant factors:
2 (a) the financial resources and needs of the
3 child;
4 (b) the financial resources and needs of the
5 custodial parent;
6 (c) the standard of living the child would
7 have enjoyed had the marriage not been dissolved;
8 (d) the physical and emotional condition of
9 the child, and his educational needs; and
10 (e) the financial resources and needs of the
11 non-custodial parent.
12 If the court deviates from the guidelines, the
13 court's finding shall state the amount of support that
14 would have been required under the guidelines, if
15 determinable. The court shall include the reason or
16 reasons for the variance from the guidelines.
17 (3) "Net income" is defined as the total of all
18 income from all sources, minus the following deductions:
19 (a) Federal income tax (properly calculated
20 withholding or estimated payments);
21 (b) State income tax (properly calculated
22 withholding or estimated payments);
23 (c) Social Security (FICA payments);
24 (d) Mandatory retirement contributions
25 required by law or as a condition of employment;
26 (e) Union dues;
27 (f) Dependent and individual
28 health/hospitalization insurance premiums;
29 (g) Prior obligations of support or
30 maintenance actually paid pursuant to a court order;
31 (h) Expenditures for repayment of debts that
32 represent reasonable and necessary expenses for the
33 production of income, medical expenditures necessary
34 to preserve life or health, reasonable expenditures
-4- LRB9004203SMdv
1 for the benefit of the child and the other parent,
2 exclusive of gifts. The court shall reduce net
3 income in determining the minimum amount of support
4 to be ordered only for the period that such payments
5 are due and shall enter an order containing
6 provisions for its self-executing modification upon
7 termination of such payment period.
8 (4) In cases where the court order provides for
9 health/hospitalization insurance coverage pursuant to
10 Section 505.2 of this Act, the premiums for that
11 insurance, or that portion of the premiums for which the
12 supporting party is responsible in the case of insurance
13 provided through an employer's health insurance plan
14 where the employer pays a portion of the premiums, shall
15 be subtracted from net income in determining the minimum
16 amount of support to be ordered.
17 (4.5) In a proceeding for child support following
18 dissolution of the marriage by a court that lacked
19 personal jurisdiction over the absent spouse, and in
20 which the court is requiring payment of support for the
21 period before the date an order for current support is
22 entered, there is a rebuttable presumption that the
23 supporting party's net income for the prior period was
24 the same as his or her net income at the time the order
25 for current support is entered.
26 (5) If the net income cannot be determined because
27 of default or any other reason, the court shall order
28 support in an amount considered reasonable in the
29 particular case. The final order in all cases shall
30 state the support level in dollar amounts.
31 (b) Failure of either parent to comply with an order to
32 pay support shall be punishable as in other cases of
33 contempt. In addition to other penalties provided by law the
34 Court may, after finding the parent guilty of contempt, order
-5- LRB9004203SMdv
1 that the parent be:
2 (1) placed on probation with such conditions of
3 probation as the Court deems advisable;
4 (2) sentenced to periodic imprisonment for a period
5 not to exceed 6 months; provided, however, that the Court
6 may permit the parent to be released for periods of time
7 during the day or night to:
8 (A) work; or
9 (B) conduct a business or other self-employed
10 occupation.
11 The Court may further order any part or all of the
12 earnings of a parent during a sentence of periodic
13 imprisonment paid to the Clerk of the Circuit Court or to the
14 parent having custody or to the guardian having custody of
15 the minor children of the sentenced parent for the support of
16 said minor children until further order of the Court.
17 If there is a unity of interest and ownership sufficient
18 to render no financial separation between a non-custodial
19 parent and another person or persons or business entity, the
20 court may pierce the ownership veil of the person, persons,
21 or business entity to discover assets of the non-custodial
22 parent held in the name of that person, those persons, or
23 that business entity. The following circumstances are
24 sufficient to authorize a court to order discovery of the
25 assets of a person, persons, or business entity and to compel
26 the application of any discovered assets toward payment on
27 the judgment for support:
28 (1) the non-custodial parent and the person, persons, or
29 business entity maintain records together.
30 (2) the non-custodial parent and the person, persons, or
31 business entity fail to maintain an arms length relationship
32 between themselves with regard to any assets.
33 (3) the non-custodial parent transfers assets to the
34 person, persons, or business entity with the intent to
-6- LRB9004203SMdv
1 perpetrate a fraud on the custodial parent.
2 The court may also order in cases where the parent is 90
3 days or more delinquent in payment of support or has been
4 adjudicated in arrears in an amount equal to 90 days
5 obligation or more, that the parent's Illinois driving
6 privileges be suspended until the court determines that the
7 parent is in compliance with the order of support. The court
8 may also order that the parent be issued a family financial
9 responsibility driving permit that would allow limited
10 driving privileges for employment and medical purposes in
11 accordance with Section 7-702.1 of the Illinois Vehicle Code.
12 The clerk of the circuit court shall certify the order
13 suspending the driving privileges of the parent or granting
14 the issuance of a family financial responsibility driving
15 permit to the Secretary of State on forms prescribed by the
16 Secretary. Upon receipt of the authenticated documents, the
17 Secretary of State shall suspend the parent's driving
18 privileges until further order of the court and shall, if
19 ordered by the court, subject to the provisions of Section
20 7-702.1 of the Illinois Vehicle Code, issue a family
21 financial responsibility driving permit to the parent.
22 (c) A one-time charge of 20% is imposable upon the
23 amount of past-due child support owed on July 1, 1988 which
24 has accrued under a support order entered by the court. The
25 charge shall be imposed in accordance with the provisions of
26 Section 10-21 of the Illinois Public Aid Code and shall be
27 enforced by the court upon petition.
28 (d) Any new or existing support order entered by the
29 court under this Section shall be deemed to be a series of
30 judgments against the person obligated to pay support
31 thereunder, each such judgment to be in the amount of each
32 payment or installment of support and each such judgment to
33 be deemed entered as of the date the corresponding payment or
34 installment becomes due under the terms of the support order.
-7- LRB9004203SMdv
1 Each such judgment shall have the full force, effect and
2 attributes of any other judgment of this State, including the
3 ability to be enforced.
4 (e) When child support is to be paid through the clerk
5 of the court in a county of 1,000,000 inhabitants or less,
6 the order shall direct the obligor to pay to the clerk, in
7 addition to the child support payments, all fees imposed by
8 the county board under paragraph (3) of subsection (u) of
9 Section 27.1 of the Clerks of Courts Act. Unless paid in
10 cash or pursuant to an order for withholding, the payment of
11 the fee shall be by a separate instrument from the support
12 payment and shall be made to the order of the Clerk.
13 (f) An order for support entered or modified in a case
14 in which a party is receiving child and spouse support
15 services under Article X of the Illinois Public Aid Code
16 shall include a provision requiring the obligor to notify the
17 Illinois Department of Public Aid, within 7 days, (i) of the
18 name and address of any new employer of the obligor, (ii)
19 whether the obligor has access to health insurance coverage
20 through the employer or other group coverage, and (iii) if
21 so, the policy name and number and the names of persons
22 covered under the policy.
23 (g) An order for support shall include a date on which
24 the current support obligation terminates. The termination
25 date shall be no earlier than the date on which the child
26 covered by the order will attain the age of majority or is
27 otherwise emancipated. The order for support shall state
28 that the termination date does not apply to any arrearage
29 that may remain unpaid on that date. Nothing in this
30 subsection shall be construed to prevent the court from
31 modifying the order.
32 (Source: P.A. 88-307; 88-687, eff. 1-24-95; 89-88, eff.
33 6-30-95; 89-92, eff. 7-1-96; 89-626, eff. 8-9-96.)
-8- LRB9004203SMdv
1 Section 15. The Illinois Parentage Act of 1984 is
2 amended by changing Section 15 as follows:
3 (750 ILCS 45/15) (from Ch. 40, par. 2515)
4 Sec. 15. Enforcement of Judgment or Order.
5 (a) If existence of the parent and child relationship is
6 declared, or paternity or duty of support has been
7 established under this Act or under prior law or under the
8 law of any other jurisdiction, the judgment rendered
9 thereunder may be enforced in the same or other proceedings
10 by any party or any person or agency that has furnished or
11 may furnish financial assistance or services to the child.
12 Sections 14, 16 and 20 of this Act shall also be applicable
13 with respect to entry, modification and enforcement of any
14 support judgment entered under provisions of the "Paternity
15 Act", approved July 5, 1957, as amended, repealed July 1,
16 1985.
17 (b) Failure to comply with any order of the court shall
18 be punishable as contempt as in other cases of failure to
19 comply under the "Illinois Marriage and Dissolution of
20 Marriage Act", as now or hereafter amended. In addition to
21 other penalties provided by law, the court may, after finding
22 the party guilty of contempt, order that the party be:
23 (1) Placed on probation with such conditions of
24 probation as the court deems advisable;
25 (2) Sentenced to periodic imprisonment for a period
26 not to exceed 6 months. However, the court may permit
27 the party to be released for periods of time during the
28 day or night to work or conduct business or other
29 self-employed occupation. The court may further order
30 any part of all the earnings of a party during a sentence
31 of periodic imprisonment to be paid to the Clerk of the
32 Circuit Court or to the person or parent having custody
33 of the minor child for the support of said child until
-9- LRB9004203SMdv
1 further order of the court.
2 (2.5) The court may also pierce the ownership veil
3 of a person, persons, or business entity to discover
4 assets of a non-custodial parent held in the name of that
5 person, those persons, or that business entity if there
6 is a unity of interest and ownership sufficient to render
7 no financial separation between the non-custodial parent
8 and that person, those persons, or the business entity.
9 The following circumstances are sufficient for a court to
10 order discovery of the assets of a person, persons, or
11 business entity and to compel the application of any
12 discovered assets toward payment on the judgment for
13 support:
14 (A) the non-custodial parent and the person,
15 persons, or business entity maintain records
16 together.
17 (B) the non-custodial parent and the person,
18 persons, or business entity fail to maintain an arms
19 length relationship between themselves with regard
20 to any assets.
21 (C) the non-custodial parent transfers assets
22 to the person, persons, or business entity with the
23 intent to perpetrate a fraud on the custodial
24 parent.
25 (3) The court may also order that in cases where
26 the party is 90 days or more delinquent in payment of
27 support or has been adjudicated in arrears in an amount
28 equal to 90 days obligation or more, that the party's
29 Illinois driving privileges be suspended until the court
30 determines that the party is in compliance with the
31 judgement or duty of support. The court may also order
32 that the parent be issued a family financial
33 responsibility driving permit that would allow limited
34 driving privileges for employment and medical purposes in
-10- LRB9004203SMdv
1 accordance with Section 7-702.1 of the Illinois Vehicle
2 Code. The clerk of the circuit court shall certify the
3 order suspending the driving privileges of the parent or
4 granting the issuance of a family financial
5 responsibility driving permit to the Secretary of State
6 on forms prescribed by the Secretary. Upon receipt of the
7 authenticated documents, the Secretary of State shall
8 suspend the party's driving privileges until further
9 order of the court and shall, if ordered by the court,
10 subject to the provisions of Section 7-702.1 of the
11 Illinois Vehicle Code, issue a family financial
12 responsibility driving permit to the parent.
13 (c) In any post-judgment proceeding to enforce or modify
14 the judgment the parties shall continue to be designated as
15 in the original proceeding.
16 (Source: P.A. 89-92, eff. 7-1-96.)