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HOW DOES A DIVORCE COURT DEFINE “FAIR?”
On January 29, 2003, the Illinois Appellate issued a decision
in a divorce case upholding a trial court decision to award 84%
of the assets to the wife, and 16% of the assets to the husband.
How, under any circumstances, could this possibly be a “fair
and equitable” division of marital assets? To illustrate this
recent Illinois Appellate Court decision, assume that Jane was married
to a nasty old man named Kenny for 38 years. Throughout the marriage,
Jane had been a housewife and raised the parties’ three children.
Kenny (whom we shall call “Mr. Nasty”) worked in a blue
collar job throughout the marriage and provided all of the family
financial support. After 38 years of marriage, Mr. Nasty and Jane
called it quits. They owned a house valued at $83,000.00, Merrill
Lynch accounts and a John Hancock Annuity valued at $226,000.00,
and had miscellaneous items of personal property valued at approximately
$100,000.00, for a total marital estate of $409,000.00 ($83,000.00
+ $226,000.00 + $100.000.00). There were no substantial credit card
bills.
In addition, Jane was receiving social security income in the
amount of $6,000.00 annually, Mr. Nasty was receiving social security
income in the amount of $12,000.00 annually, plus Mr. Nasty was
receiving an additional $19,000.00 annually from his pension plan
from his former employer. At the divorce trial, Mr. Nasty testified
he might work part time as a real estate agent, and Jane would continue
to remain unemployed.
In dividing up the marital estate, the trial court awarded Jane
the marital residence worth $83,000.00 (with no mortgage balance),
the Merrill Lynch and John Hancock accounts worth $226,000.00, plus
$33,000.00 of the parties’ miscellaneous personal property,
for a total of $342,000.00. Mr. Nasty was awarded $67,000.00 of
miscellaneous personal property. Finally, Mr. Nasty was not required
to pay any maintenance (formerly referred to as “alimony”)
to his wife of 38 years. (Was this a “fair and equitable”
division of marital property?) Well the Illinois Appellate Court,
which typically has three justices who vote whether or not to uphold
the trial court decision, voted 2 to 1 in favor of upholding the
trial court decision. In accordance with Illinois law, the trial
court was required to look at a series of factors in determining
how best to divide marital property without assigning fault or blame
to either party. In this case, the factors considered by the trial
court included each party’s contribution to acquiring the
marital assets, the value of property assigned to each party, the
length of the marriage, the economic circumstances of each party,
the age of each party, the future sources of income and vocational
skills of each party, the reasonable opportunity for each spouse
to acquire assets in the future, as well as the issue of whether
maintenance (alimony) should be paid from husband to wife. The court’s
rationale was as follows:
After the divorce, the husband’s social security and pension
income each year would be $31,000.00, and the wife’s social
security income each year would be $6,000.00. The trial court did
not choose to award maintenance to the wife, because if her ex-husband
died anytime soon, Jane would be without sufficient resources at
the end of her life. By awarding Jane a debt free marital home,
and awarding Jane $226,000.00 in stock and bonds, Jane would be
able to support herself without any assistance from her ex-husband.
Mr. Nasty on the other hand, would continue to receive $31,000.00
annually in social security and pension income for the remainder
of his life, which would still be substantially more income than
Jane would receive each year. The court also took note that Mr.
Nasty maintained the possibility of working part time as a real
estate sales agent. For these reasons, the distribution of marital
assets was held “fair and equitable.”
In summarizing, Illinois trial courts have wide discretion in
defining the words, “fair and equitable.” The Appellate
Court concluded by stating that in deciding whether or not to reverse
a trial court decision, “an abuse of discretion occurs only
when no reasonable man could take the view adopted by the trial
court.” The lone dissenting Appellate Court Justice held that
the trial court did commit an abuse of discretion because the wife
received nearly 500% more of the marital property than the husband.
The moral of the story is, if you want to roll the dice, do it in
Las Vegas rather than in divorce court.