In re Marriage of Bolnick

2024 IL App (1st) 230014-U
CourtAppellate Court of Illinois
DecidedMarch 20, 2024
Docket1-23-0014
StatusUnpublished

This text of 2024 IL App (1st) 230014-U (In re Marriage of Bolnick) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Marriage of Bolnick, 2024 IL App (1st) 230014-U (Ill. Ct. App. 2024).

Opinion

2024 IL App (1st) 230014-U

THIRD DIVISION March 20, 2024

No. 1-23-0014

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

In re MARRIAGE OF KAY BOLNICK, ) Appeal from the Circuit Court of ) Cook County. Petitioner-Appellant, ) ) and ) No. 2007 D 003505 ) HOWARD BOLNICK, ) ) Honorable Lloyd James Brooks, Respondent-Appellee. ) Judge, presiding.

JUSTICE D.B. WALKER delivered the judgment of the court. Presiding Justice Reyes and Justice Van Tine concurred in the judgment.

ORDER

¶1 Held: The trial court did not err in entering declaratory judgment in favor of respondent’s counter-petition for declaratory judgment. Affirmed.

¶2 Petitioner Kay Bolnick (Kay) filed a petition seeking a declaration of her rights as to a prior

maintenance award following the dissolution of her marriage with respondent Howard Bolnick

(Howard). Respondent filed a response and counter-petition for declaratory judgment. The trial

court entered an order finding that the terms of the maintenance award (as revised in May 2021)

governed the calculation of maintenance going forward. On appeal, Kay contends that the trial No. 1-23-0014

court lacked subject-matter jurisdiction to modify the judgment for dissolution of marriage and in

any event, there was no evidence to support modifying that judgment. We affirm.

¶3 BACKGROUND

¶4 Petitioner Kay Bolnick and respondent Howard Bolnick were married on November 29,

1970. On April 5, 2007, Kay filed her petition for dissolution of marriage. On July 7, 2009, the

trial court entered a judgment dissolving the parties’ marriage, which incorporated a marital

settlement agreement (MSA). The MSA provided in relevant part that Howard would pay Kay

permanent maintenance consisting of 37.5% of the difference between Howard’s “Gross Earned

Income” and Kay’s “Gross Applicable Income.” The MSA defined Howard’s gross earned income

as all gross income Howard earned and received through his personal efforts, “whether received

personally and/or *** by an entity in which he has an interest, including but not limited to, an

interest of partnership, membership, shareholder or otherwise.”

¶5 Kay’s October 2017 Petition to Enforce

¶6 On October 17, 2017, Kay filed a “Petition to Enforce Payment of Maintenance.” Kay’s

petition stated that Howard was an actuary and had been self-employed from 2009 (the date the

parties’ marriage was dissolved) until January 2016, at which point Howard claimed to be an

employee of Radix Actuarial Consultants, Inc. (RAC), a Delaware corporation. Kay added that,

prior to 2016, Howard’s income had been approximately $180,000, but afterwards, Howard

claimed to be an employee of RAC with an annual income of only $90,000. Howard refused Kay’s

request for tax returns, financial statements, or other documents concerning RAC. Kay asked the

court to order “full disclosure of these matters in order to determine Howard’s true earnings and

income and what amount of maintenance Howard should be paying” because “it is apparent that

Howard is attempting to conceal his true income for purposes of calculating the maintenance due

Kay.” Howard filed his response on January 2, 2018, denying the substance of Kay’s allegations.

2 No. 1-23-0014

¶7 On October 9, 2020, the trial court issued an “opinion order” granting Kay’s petition after

having “heard and considered the testimony of the parties and *** the evidence.” The court’s

order recounted that Howard was an actuary and had been self-employed doing business as

“Radix” from the date the parties’ marriage was dissolved until 2015. The court then noted that,

in 2015, RAC was incorporated as an “S” corporation with Howard’s current wife, Claudia, as the

incorporator, president, and sole shareholder of RAC. Howard, by contrast, was RAC’s sole

employee. The court further found that, when Howard was the sole owner of Radix, his gross

income was approximately $180,000 per year, whereas when he was an employee of RAC, his

gross income was only $90,000 per year. The court’s order recounted Howard’s testimony that

Claudia (“who is not an actuary or employee [of RAC] and performs no functions or duties for the

company”) determined his salary and the remaining revenues that RAC earned were “retained by

RAC then distributed to Claudia annually.” The court found that the dissolution of Radix and

incorporation of RAC was “structured in a contrived fashion” to evade his support obligation. The

order provided in relevant part as follows:

“2. The court shall impute the revenue and/or income

received by RAC and distributed to [Howard’s] current wife

Claudia, which is approximately $90,000.00 per year, into

[Howard’s] gross income or in the alternative the remaining

revenues of RAC shall be computed and thereafter imputed as gross

income to [Howard].

***

4. The parties shall continue to follow the formula agreed to

in the MSA for the purpose of calculating maintenance.

3 No. 1-23-0014

5. Maintenance shall be recalculated based upon the

imputed income to [Howard] by this court and shall relate back to

the date of filing.”

Finally, the court directed (1) Kay to calculate “maintenance due and owing that are in arrears to

date in a proposed order” and (2) Howard to state his objections to Kay’s proposed order.

¶8 On November 9, 2020, Howard moved the trial court to reconsider its order of October 9,

2020. On April 15, 2021, the court denied Howard’s motion with respect to Kay’s petition to

enforce payment. The court then set a hearing for “Kay’s proposed judgment order [regarding

maintenance due in arrears] and Howard’s objection thereto” for May 7, 2021. The record on

appeal does not contain a transcript of this hearing.

¶9 On May 19, 2021, the trial court entered an order providing that paragraph 2 of its October

9, 2020, order was “clarified to read” that the court would impute into Howard’s gross income the

greater of either (1) the income RAC received and distributed to Howard’s current wife (Claudia)

or (2) “the remaining revenues of RAC,” net of “ordinary and reasonable business expenses.” The

court directed both parties to “attempt to reach an agreement as to the arrearage owed from the

date of the filing [of Kay’s petition to enforce] to date.”

¶ 10 On May 24, 2021, Kay filed her motion for reconsideration of the trial court’s opinion

order dated October 9, 2020. Kay argued that the order should have awarded the unpaid

maintenance from the date Howard failed to pay the proper amount, i.e., July 2015, instead of the

date of her filing of the petition to enforce (October 2017). She did not challenge or otherwise

raise any claim regarding that portion of the court’s order imputing into Howard’s gross income

the greater of (1) RAC’s distributions to Claudia or (2) RAC’s remaining revenues.

¶ 11 On December 17, 2021, the trial court granted Kay’s motion to reconsider. The court’s

order stated that Howard’s maintenance obligation would be recalculated back to July 2015, “the

4 No. 1-23-0014

date in which [Howard] wrongfully and improperly reduced his maintenance obligation to [Kay].”

The court added that Howard would pay Kay “back maintenance (arrears) based upon $180,000.00

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Bluebook (online)
2024 IL App (1st) 230014-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-bolnick-illappct-2024.