In re Marriage of Heinrich

2014 IL App (2d) 121333
CourtAppellate Court of Illinois
DecidedMay 12, 2014
Docket2-12-1333
StatusPublished
Cited by26 cases

This text of 2014 IL App (2d) 121333 (In re Marriage of Heinrich) 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 Heinrich, 2014 IL App (2d) 121333 (Ill. Ct. App. 2014).

Opinion

Illinois Official Reports

Appellate Court

In re Marriage of Heinrich, 2014 IL App (2d) 121333

Appellate Court In re MARRIAGE OF MARY LEE HEINRICH, Petitioner and Caption Counterrespondent-Appellee, and PAUL HEINRICH, Respondent and Counterpetitioner-Appellant.

District & No. Second District Docket No. 2-12-1333

Filed March 19, 2014

Held Parties’ premarital agreement’s attorney-fee-shifting ban as to (Note: This syllabus child-related issues violates Illinois public policy and is unenforceable constitutes no part of the as to those issues, but the remainder of the agreement, pursuant to its opinion of the court but severability clause, remains enforceable. has been prepared by the Reporter of Decisions for the convenience of the reader.)

Decision Under Appeal from the Circuit Court of Kane County, No. 10-D-622; the Review Hon. John A. Noverini, Judge, presiding.

Judgment Affirmed in part and reversed in part; cause remanded. Counsel on Michael J. Scalzo and Todd D. Scalzo, both of Scalzo Law Offices, of Appeal Wheaton, for appellant.

Keith E. Roberts, Jr., and Joseph P. O’Brien, both of Roberts P.C., of Wheaton, for appellee.

Panel JUSTICE JORGENSEN delivered the judgment of the court, with opinion. Presiding Justice Burke concurred in the judgment and opinion. Justice Hutchinson dissented, with opinion.

OPINION

¶1 Petitioner, Mary Lee Heinrich, filed a petition for dissolution of her marriage to respondent, Paul Heinrich. Subsequently, respondent filed a motion for declaratory judgment, seeking a general determination of the parties’ rights under their premarital agreement. The trial court declared the parties’ premarital agreement valid and enforceable. It subsequently denied respondent’s motion to reconsider, which was brought 17 months later, and found that there was no just reason to delay enforcement or appeal or both pursuant to Illinois Supreme Court Rule 304(a) (eff. Feb. 26, 2010). Respondent appeals, arguing that the trial court erred in: (1) declaring that the premarital agreement’s attorney-fee-shifting ban was valid as to child-related issues; (2) denying respondent’s motion to reconsider for untimeliness and lack of new facts; and (3) declaring the premarital agreement valid and enforceable. We affirm in part, reverse in part, and remand the cause for further proceedings.

¶2 I. BACKGROUND ¶3 The parties were married on May 26, 2001. Petitioner was 36 years old and employed at her father’s company. Respondent was 44 years old and self-employed as an attorney. He also had an ownership interest in an airplane rental and charter business. Prior to their marriage, on May 25, 2001, they signed a premarital agreement. The agreement states that each party’s estate has approximately the same value and that petitioner’s estate “is expected to increase through gifts to her or inheritances received from members of her family.” Financial disclosure exhibits attached to the agreement list the parties’ assets, liabilities, and net worth. Petitioner’s exhibit lists net assets of over $1.9 million (including her interests in various family-owned businesses, listing McKelvey Homes of Missouri, LLC (valued at $405,900), but not including McKelvey Rental, LLC, which is at issue in this appeal) and no liabilities. In 1999, her adjusted gross income was $383,445, and, in 2000, it was $279,358. An item described as “Anticipated Inheritance” lists the value as “Amount undetermined.”

-2- ¶4 Respondent’s exhibit reflects a net worth of $620,000. His income in 1998 was $380,000; in 1999, it was $180,000; and his estimated 2000 income is listed as $130,000. ¶5 As to attorney fees, section 6.9 of the premarital agreement states: “If either party contests the validity of this Agreement, and the Agreement is held valid, the contesting party shall be liable for and pay the other party’s legal fees and expenses, however, either party can seek judicial interpretation of the meaning of this Agreement if it appears ambiguous as long as they overtly and explicitly accept the validity of the Agreement, in which case each pays his or her own legal fees and expenses.” ¶6 The agreement also provides, in section 4.2(d) (which is at issue here), that, if the parties’ marriage is dissolved or in the event of a legal separation: “Neither party shall make any claim upon the other for costs or attorneys’ fees whether pendente lite or final, incurred in seeking or obtaining any such order or decree, notwithstanding any right to costs or attorneys’ fees a party otherwise may have pursuant to any statute of any jurisdiction ***.” ¶7 The premarital agreement further states that, in the event of divorce, each party would keep sole ownership of his or her own separate property and the parties would equally divide the shared property, regardless of their respective contributions to the shared property during the marriage. Shared property is defined as: (1) all property acquired by the parties during the marriage and jointly titled or titled as tenants by the entireties; (2) tangible personal property that has no formal ownership designation and is acquired during the marriage for joint use and enjoyment; (3) wages and earned income received by the parties during the marriage, including nonpassive income from any partnership or business; (4) all investments, savings, or other property, whether tangible or intangible, acquired by the parties with wages or other earned income; and (5) retirement accounts, to the extent they are funded with income earned by either party during the marriage. Separate property is defined as property that: (1) belongs to either party at the commencement of the marriage as reflected in the exhibits; (2) is acquired by either party during the marriage by gift, devise, bequest, descent, inheritance, or like acquisition; (3) is acquired by either party during the marriage and placed or maintained in his or her separate name or account, but excluding any property derived from either party’s earned income during the marriage; or (4) is acquired by either or both parties during the marriage and is not shared property. However, the agreement provided that, since respondent would pay the mortgage for his Wisconsin residence from his earned income (i.e., shared property), petitioner could claim an offset by transferring equal amounts of her earned income into her own separate property. Also, if petitioner stopped working in order to raise children, she would instead receive an equity interest in respondent’s Wisconsin residence equal to one-half of his mortgage payments. (The agreement, however, did not contain a reciprocal provision allowing respondent to claim an offset for any expenses petitioner might pay with her earned income for her ownership of a Missouri residence and her one-third interest in a Missouri farm.) ¶8 The agreement also states that the parties would be barred from seeking maintenance against each other, unless petitioner stopped working in order to raise children, in which case she could seek rehabilitative maintenance for up to two years. The agreement further states that each party was represented and advised by separate counsel and that each party acknowledged that he or she was fully advised of the other party’s financial means and resources and examined the other’s exhibit with the benefit of separate counsel. It also contains a severability

-3- clause and an arbitration clause, and it provides that Missouri law controls its construction and effect. ¶9 Again, the parties were married one day after they executed the agreement. During the marriage, they had two children: Grace (born in December 2002) and Elliott (born in September 2004). ¶ 10 On April 28, 2010, petitioner petitioned for dissolution of the parties’ marriage. She sought joint custody of the children and child support.

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2014 IL App (2d) 121333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-heinrich-illappct-2014.