In re Marriage of Klose

2023 IL App (1st) 192253, 221 N.E.3d 1095, 468 Ill. Dec. 873
CourtAppellate Court of Illinois
DecidedMarch 31, 2023
Docket1-19-2253
StatusPublished
Cited by9 cases

This text of 2023 IL App (1st) 192253 (In re Marriage of Klose) 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 Klose, 2023 IL App (1st) 192253, 221 N.E.3d 1095, 468 Ill. Dec. 873 (Ill. Ct. App. 2023).

Opinion

2023 IL App (1st) 192253 No. 1-19-2253 cons 1-21-0964 Opinion Filed on March 31, 2023 Sixth Division

______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ In re MARRIAGE OF LAURA KLOSE, ) Appeal from the Circuit Court of ) Cook County, Illinois. Petitioner-Appellee, ) ) No. 14-D-4796 and ) FREDRICK KLOSE ) The Honorable ) Michael Forti Respondent-Appellant. ) Judge Presiding. )

JUSTICE C.A. WALKER delivered the judgment of the court, with opinion. Presiding Justice Mikva and Justice Oden Johnson concurred in the judgment, and opinion.

OPINION

¶1 Laura Klose filed a petition for dissolution of marriage from Fredrick Klose. After six days

of trial testimony, the circuit court entered an order dissolving the marriage and awarded each

party 50% of the marital estate. Fredrick appealed. During the pendency of the appeal, Laura filed

a motion to clarify the judgment, or in the alternative, petition for adjudication of indirect civil

contempt. The circuit court granted the motion to clarify the judgment and ordered that “Laura

shall receive an additional (over Fredrick) $222,045.76 from the marital estate, or $111,022.88

from Fredrick’s share of the assets to account for the pre-distributions taken by Fredrick during No. 1- 19-2253 cons 1-21-0964

the pendency of this divorce case.” The court denied Fredrick’s motion to reconsider, and Fredrick

filed an additional notice of appeal. The appeals were consolidated.

¶2 Fredrick now argues that the circuit court (1) abused its discretion by finding that the three

investment accounts and former marital residence were marital property, (2) erred by dividing the

accounts and property equally, and (3) erred by modifying the judgment for the dissolution of

marriage more than 30 days after the entry of the judgment. We hold the circuit court’s finding

that the investment accounts and marital residence are marital property was not against the

manifest weight of the evidence. The court did not abuse its discretion by awarding each party

50% of the marital estate. We further hold that the circuit court did not err when it ordered that

Laura shall receive 50% or $111,022.88 from an investment account where the court clarifies the

judgment for dissolution of marriage that provided each party shall receive 50% of the marital

estate. For the following reasons, we affirm.

¶3 I. BACKGROUND

¶4 Laura and Fredrick married in 1987 and had one child, Christina. Fredrick began working

in 1953. Fredrick’s Social Security statement shows a total amount of wages of $333,695 prior to

marrying Laura. Laura worked prior to marrying Fredrick. However, both parties agreed she would

cease working outside of the home so that she could raise Christina. Laura began working again

in 1995 until 2014. Laura’s W2’s demonstrate that she earned $356,100.00 from 1995 to 2012. On

May 22, 2014, Laura filed a petition for dissolution of marriage from Fredrick.

¶5 At trial, Laura presented an exhibit that demonstrated three separate investment accounts

owned by the parties. A Genworth Annuity, established June 8, 2006, contained a balance of

$641,816.91 as of June 2017. A John Hancock Annuity, formed on November 2, 2005, contained

-2- No. 1- 19-2253 cons 1-21-0964

an approximate balance of $817,251.50 as of September 2017. Lastly, a Scudder Destinations IRA,

established on April 3, 2001, had a balance of $92,621.50.

¶6 Prior to the marriage, Fredrick purchased a house in Park Ridge, Illinois. That Park Ridge

property would later serve as the marital residence for Fredrick and Laura. In June of 1999, the

parties retained the legal services of John E. Owens, who specialized in estate planning. Owens

created a land trust for the home and two reciprocal trusts in the parties’ names. Owens testified

that he explained how the documents worked to the parties:

“Q. So if I understand your testimony, what we have gone over so far, it

was not your understanding that your direction was to equalize the estates now or

then for Mr. and Mrs. Klose?

A. My understanding was that the land trust was to protect her currently at

that time because her estate was much lower in asset value and it is also protected—

reflected back on the husband who would, as we established, would have

established a tax benefit for him.

As far as going ahead, the estate, the trusts that were reciprocal trusts, were

set up to benefit both parties at that time and to benefit Mrs. Klose so that she would

be protected should anything happen to Mr. Klose. So there is a benefit there that

tends to equalize because it places his assets that are in trust. And I clarify that

because in trust means that the assets must be placed into the trust otherwise they

are subject to the probate.

***

Q. You could set up the trust and not make them reciprocal?

-3- No. 1- 19-2253 cons 1-21-0964

A. Yes.
Q. But you chose to because of the tax benefits?
A. Well, not only the tax benefit, for the benefit of the spouses because

that’s the way they had planned it. If the husband’s estate were larger, it would

more than benefit and the husband would receive from the wife. So in that case, if

he passed away, his assets would ultimately have benefited the wife to a greater

extent than they would have to the wife leaving what she had in her name, which is

smaller.”

¶7 Years later, Fredrick contacted Owens and attempted to remove Laura as the beneficiary

of the land trust. Owens refused to make any changes to the trust without Laura’s consent to modify

the trust. At trial, Fredrick claimed that when he signed the documents “he didn’t understand all

of that stuff.” The circuit court found that Fredrick’s subsequent meetings with Owens to remove

Laura as a beneficiary was evidence that he understood that he gifted the home to Laura.

¶8 Fredrick also entered an exhibit reflecting the money he acquired before the marriage. On

cross-examination regarding the exhibit, the following exchange occurred:

“Q. That Exhibit No. 33, as we just identified, says on the front of it, blue

sheet here, money Fredrick Klose acquired before marriage; yes?

A. That’s what it says.
Q. And yet some of the documents that are in that Exhibit 33, are they not,

are documents reflecting assets of other individuals other than yourself such as

Anna Lutz, Dorothy Kerr, Frederick F. Klose and Alfred Klose? Some of those

documents are in their names; correct?

-4- No. 1- 19-2253 cons 1-21-0964

A. I inherited all that stuff.
Q. These documents don’t reflect any inheritance, they just reflect assets in

their names; correct?

A. Correct.”

¶9 The circuit court entered a judgment for dissolution of marriage on July 18, 2019. The

court ruled that the Park Ridge property and the three investment accounts were marital property

and ordered that the marital estate be divided equally. The circuit court denied Frederick’s motion

to reconsider the division of marital property, and he appealed.

¶ 10 After the judgment was entered, and while the case was on appeal, Laura filed an Amended

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Bluebook (online)
2023 IL App (1st) 192253, 221 N.E.3d 1095, 468 Ill. Dec. 873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-klose-illappct-2023.