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90_HB2152enr
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
HB2152 Enrolled 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 attachment or other
26 provisional remedy in accordance with the procedure
27 prescribed by this Code. The court may not authorize
28 attachment of property or any other provisional remedy under
29 this paragraph unless it has obtained jurisdiction over the
30 entity holding title to the property by proper service on
31 that entity. With respect to assets which are real property,
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1 no order entered as described in this paragraph shall affect
2 the rights of bona fide purchasers, mortgagees, judgment
3 creditors, or other lien holders who acquire their interests
4 in the property prior to the time a notice of lis pendens
5 pursuant to this Code or a copy of the order is placed of
6 record in the office of the recorder of deeds for the county
7 in which the real property is located.
8 This amendatory Act of 1995 is declarative of existing
9 law.
10 (Source: P.A. 89-88, eff. 6-30-95; 89-438, eff. 12-15-95.)
11 Section 10. The Illinois Marriage and Dissolution of
12 Marriage Act is amended by changing Section 505 as follows:
13 (750 ILCS 5/505) (from Ch. 40, par. 505)
14 Sec. 505. Child support; contempt; penalties.
15 (a) In a proceeding for dissolution of marriage, legal
16 separation, declaration of invalidity of marriage, a
17 proceeding for child support following dissolution of the
18 marriage by a court which lacked personal jurisdiction over
19 the absent spouse, a proceeding for modification of a
20 previous order for child support under Section 510 of this
21 Act, or any proceeding authorized under Section 501 or 601 of
22 this Act, the court may order either or both parents owing a
23 duty of support to a child of the marriage to pay an amount
24 reasonable and necessary for his support, without regard to
25 marital misconduct. The duty of support owed to a minor
26 child includes the obligation to provide for the reasonable
27 and necessary physical, mental and emotional health needs of
28 the child.
29 (1) The Court shall determine the minimum amount of
30 support by using the following guidelines:
31 Number of Children Percent of Supporting Party's
32 Net Income
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1 1 20%
2 2 25%
3 3 32%
4 4 40%
5 5 45%
6 6 or more 50%
7 (2) The above guidelines shall be applied in each
8 case unless the court makes a finding that application of
9 the guidelines would be inappropriate, after considering
10 the best interests of the child in light of evidence
11 including but not limited to one or more of the following
12 relevant factors:
13 (a) the financial resources and needs of the
14 child;
15 (b) the financial resources and needs of the
16 custodial parent;
17 (c) the standard of living the child would
18 have enjoyed had the marriage not been dissolved;
19 (d) the physical and emotional condition of
20 the child, and his educational needs; and
21 (e) the financial resources and needs of the
22 non-custodial parent.
23 If the court deviates from the guidelines, the
24 court's finding shall state the amount of support that
25 would have been required under the guidelines, if
26 determinable. The court shall include the reason or
27 reasons for the variance from the guidelines.
28 (3) "Net income" is defined as the total of all
29 income from all sources, minus the following deductions:
30 (a) Federal income tax (properly calculated
31 withholding or estimated payments);
32 (b) State income tax (properly calculated
33 withholding or estimated payments);
34 (c) Social Security (FICA payments);
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1 (d) Mandatory retirement contributions
2 required by law or as a condition of employment;
3 (e) Union dues;
4 (f) Dependent and individual
5 health/hospitalization insurance premiums;
6 (g) Prior obligations of support or
7 maintenance actually paid pursuant to a court order;
8 (h) Expenditures for repayment of debts that
9 represent reasonable and necessary expenses for the
10 production of income, medical expenditures necessary
11 to preserve life or health, reasonable expenditures
12 for the benefit of the child and the other parent,
13 exclusive of gifts. The court shall reduce net
14 income in determining the minimum amount of support
15 to be ordered only for the period that such payments
16 are due and shall enter an order containing
17 provisions for its self-executing modification upon
18 termination of such payment period.
19 (4) In cases where the court order provides for
20 health/hospitalization insurance coverage pursuant to
21 Section 505.2 of this Act, the premiums for that
22 insurance, or that portion of the premiums for which the
23 supporting party is responsible in the case of insurance
24 provided through an employer's health insurance plan
25 where the employer pays a portion of the premiums, shall
26 be subtracted from net income in determining the minimum
27 amount of support to be ordered.
28 (4.5) In a proceeding for child support following
29 dissolution of the marriage by a court that lacked
30 personal jurisdiction over the absent spouse, and in
31 which the court is requiring payment of support for the
32 period before the date an order for current support is
33 entered, there is a rebuttable presumption that the
34 supporting party's net income for the prior period was
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1 the same as his or her net income at the time the order
2 for current support is entered.
3 (5) If the net income cannot be determined because
4 of default or any other reason, the court shall order
5 support in an amount considered reasonable in the
6 particular case. The final order in all cases shall
7 state the support level in dollar amounts.
8 (b) Failure of either parent to comply with an order to
9 pay support shall be punishable as in other cases of
10 contempt. In addition to other penalties provided by law the
11 Court may, after finding the parent guilty of contempt, order
12 that the parent be:
13 (1) placed on probation with such conditions of
14 probation as the Court deems advisable;
15 (2) sentenced to periodic imprisonment for a period
16 not to exceed 6 months; provided, however, that the Court
17 may permit the parent to be released for periods of time
18 during the day or night to:
19 (A) work; or
20 (B) conduct a business or other self-employed
21 occupation.
22 The Court may further order any part or all of the
23 earnings of a parent during a sentence of periodic
24 imprisonment paid to the Clerk of the Circuit Court or to the
25 parent having custody or to the guardian having custody of
26 the minor children of the sentenced parent for the support of
27 said minor children until further order of the Court.
28 If there is a unity of interest and ownership sufficient
29 to render no financial separation between a non-custodial
30 parent and another person or persons or business entity, the
31 court may pierce the ownership veil of the person, persons,
32 or business entity to discover assets of the non-custodial
33 parent held in the name of that person, those persons, or
34 that business entity. The following circumstances are
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1 sufficient to authorize a court to order discovery of the
2 assets of a person, persons, or business entity and to compel
3 the application of any discovered assets toward payment on
4 the judgment for support:
5 (1) the non-custodial parent and the person, persons, or
6 business entity maintain records together.
7 (2) the non-custodial parent and the person, persons, or
8 business entity fail to maintain an arms length relationship
9 between themselves with regard to any assets.
10 (3) the non-custodial parent transfers assets to the
11 person, persons, or business entity with the intent to
12 perpetrate a fraud on the custodial parent.
13 With respect to assets which are real property, no order
14 entered under this paragraph shall affect the rights of bona
15 fide purchasers, mortgagees, judgment creditors, or other
16 lien holders who acquire their interests in the property
17 prior to the time a notice of lis pendens pursuant to the
18 Code of Civil Procedure or a copy of the order is placed of
19 record in the office of the recorder of deeds for the county
20 in which the real property is located.
21 The court may also order in cases where the parent is 90
22 days or more delinquent in payment of support or has been
23 adjudicated in arrears in an amount equal to 90 days
24 obligation or more, that the parent's Illinois driving
25 privileges be suspended until the court determines that the
26 parent is in compliance with the order of support. The court
27 may also order that the parent be issued a family financial
28 responsibility driving permit that would allow limited
29 driving privileges for employment and medical purposes in
30 accordance with Section 7-702.1 of the Illinois Vehicle Code.
31 The clerk of the circuit court shall certify the order
32 suspending the driving privileges of the parent or granting
33 the issuance of a family financial responsibility driving
34 permit to the Secretary of State on forms prescribed by the
HB2152 Enrolled -7- LRB9004203SMdv
1 Secretary. Upon receipt of the authenticated documents, the
2 Secretary of State shall suspend the parent's driving
3 privileges until further order of the court and shall, if
4 ordered by the court, subject to the provisions of Section
5 7-702.1 of the Illinois Vehicle Code, issue a family
6 financial responsibility driving permit to the parent.
7 (c) A one-time charge of 20% is imposable upon the
8 amount of past-due child support owed on July 1, 1988 which
9 has accrued under a support order entered by the court. The
10 charge shall be imposed in accordance with the provisions of
11 Section 10-21 of the Illinois Public Aid Code and shall be
12 enforced by the court upon petition.
13 (d) Any new or existing support order entered by the
14 court under this Section shall be deemed to be a series of
15 judgments against the person obligated to pay support
16 thereunder, each such judgment to be in the amount of each
17 payment or installment of support and each such judgment to
18 be deemed entered as of the date the corresponding payment or
19 installment becomes due under the terms of the support order.
20 Each such judgment shall have the full force, effect and
21 attributes of any other judgment of this State, including the
22 ability to be enforced.
23 (e) When child support is to be paid through the clerk
24 of the court in a county of 1,000,000 inhabitants or less,
25 the order shall direct the obligor to pay to the clerk, in
26 addition to the child support payments, all fees imposed by
27 the county board under paragraph (3) of subsection (u) of
28 Section 27.1 of the Clerks of Courts Act. Unless paid in
29 cash or pursuant to an order for withholding, the payment of
30 the fee shall be by a separate instrument from the support
31 payment and shall be made to the order of the Clerk.
32 (f) An order for support entered or modified in a case
33 in which a party is receiving child and spouse support
34 services under Article X of the Illinois Public Aid Code
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1 shall include a provision requiring the obligor to notify the
2 Illinois Department of Public Aid, within 7 days, (i) of the
3 name and address of any new employer of the obligor, (ii)
4 whether the obligor has access to health insurance coverage
5 through the employer or other group coverage, and (iii) if
6 so, the policy name and number and the names of persons
7 covered under the policy.
8 (g) An order for support shall include a date on which
9 the current support obligation terminates. The termination
10 date shall be no earlier than the date on which the child
11 covered by the order will attain the age of majority or is
12 otherwise emancipated. The order for support shall state
13 that the termination date does not apply to any arrearage
14 that may remain unpaid on that date. Nothing in this
15 subsection shall be construed to prevent the court from
16 modifying the order.
17 (Source: P.A. 88-307; 88-687, eff. 1-24-95; 89-88, eff.
18 6-30-95; 89-92, eff. 7-1-96; 89-626, eff. 8-9-96.)
19 Section 15. The Illinois Parentage Act of 1984 is
20 amended by changing Section 15 as follows:
21 (750 ILCS 45/15) (from Ch. 40, par. 2515)
22 Sec. 15. Enforcement of Judgment or Order.
23 (a) If existence of the parent and child relationship is
24 declared, or paternity or duty of support has been
25 established under this Act or under prior law or under the
26 law of any other jurisdiction, the judgment rendered
27 thereunder may be enforced in the same or other proceedings
28 by any party or any person or agency that has furnished or
29 may furnish financial assistance or services to the child.
30 Sections 14, 16 and 20 of this Act shall also be applicable
31 with respect to entry, modification and enforcement of any
32 support judgment entered under provisions of the "Paternity
HB2152 Enrolled -9- LRB9004203SMdv
1 Act", approved July 5, 1957, as amended, repealed July 1,
2 1985.
3 (b) Failure to comply with any order of the court shall
4 be punishable as contempt as in other cases of failure to
5 comply under the "Illinois Marriage and Dissolution of
6 Marriage Act", as now or hereafter amended. In addition to
7 other penalties provided by law, the court may, after finding
8 the party guilty of contempt, order that the party be:
9 (1) Placed on probation with such conditions of
10 probation as the court deems advisable;
11 (2) Sentenced to periodic imprisonment for a period
12 not to exceed 6 months. However, the court may permit
13 the party to be released for periods of time during the
14 day or night to work or conduct business or other
15 self-employed occupation. The court may further order
16 any part of all the earnings of a party during a sentence
17 of periodic imprisonment to be paid to the Clerk of the
18 Circuit Court or to the person or parent having custody
19 of the minor child for the support of said child until
20 further order of the court.
21 (2.5) The court may also pierce the ownership veil
22 of a person, persons, or business entity to discover
23 assets of a non-custodial parent held in the name of that
24 person, those persons, or that business entity if there
25 is a unity of interest and ownership sufficient to render
26 no financial separation between the non-custodial parent
27 and that person, those persons, or the business entity.
28 The following circumstances are sufficient for a court to
29 order discovery of the assets of a person, persons, or
30 business entity and to compel the application of any
31 discovered assets toward payment on the judgment for
32 support:
33 (A) the non-custodial parent and the person,
34 persons, or business entity maintain records
HB2152 Enrolled -10- LRB9004203SMdv
1 together.
2 (B) the non-custodial parent and the person,
3 persons, or business entity fail to maintain an arms
4 length relationship between themselves with regard
5 to any assets.
6 (C) the non-custodial parent transfers assets
7 to the person, persons, or business entity with the
8 intent to perpetrate a fraud on the custodial
9 parent.
10 With respect to assets which are real property, no order
11 entered under this subdivision (2.5) shall affect the rights
12 of bona fide purchasers, mortgagees, judgment creditors, or
13 other lien holders who acquire their interests in the
14 property prior to the time a notice of lis pendens pursuant
15 to the Code of Civil Procedure or a copy of the order is
16 placed of record in the office of the recorder of deeds for
17 the county in which the real property is located.
18 (3) The court may also order that in cases where
19 the party is 90 days or more delinquent in payment of
20 support or has been adjudicated in arrears in an amount
21 equal to 90 days obligation or more, that the party's
22 Illinois driving privileges be suspended until the court
23 determines that the party is in compliance with the
24 judgement or duty of support. The court may also order
25 that the parent be issued a family financial
26 responsibility driving permit that would allow limited
27 driving privileges for employment and medical purposes in
28 accordance with Section 7-702.1 of the Illinois Vehicle
29 Code. The clerk of the circuit court shall certify the
30 order suspending the driving privileges of the parent or
31 granting the issuance of a family financial
32 responsibility driving permit to the Secretary of State
33 on forms prescribed by the Secretary. Upon receipt of the
34 authenticated documents, the Secretary of State shall
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1 suspend the party's driving privileges until further
2 order of the court and shall, if ordered by the court,
3 subject to the provisions of Section 7-702.1 of the
4 Illinois Vehicle Code, issue a family financial
5 responsibility driving permit to the parent.
6 (c) In any post-judgment proceeding to enforce or modify
7 the judgment the parties shall continue to be designated as
8 in the original proceeding.
9 (Source: P.A. 89-92, eff. 7-1-96.)