In re Marriage of Romero

2021 IL App (4th) 200326-U
CourtAppellate Court of Illinois
DecidedSeptember 14, 2021
Docket4-20-0326
StatusUnpublished

This text of 2021 IL App (4th) 200326-U (In re Marriage of Romero) 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 Romero, 2021 IL App (4th) 200326-U (Ill. Ct. App. 2021).

Opinion

NOTICE 2021 IL App (4th) 200326-U FILED This Order was filed under September 14, 2021 Supreme Court Rule 23 and is not precedent except in the NO. 4-20-0326 Carla Bender limited circumstances allowed 4th District Appellate under Rule 23(e)(1). Court, IL IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

In re MARRIAGE OF ) Appeal from the LISA ROMERO, ) Circuit Court of Petitioner-Appellee, ) Champaign County and ) No. 17D567 JOHN B. LEVOLD, ) Respondent-Appellant. ) ) Honorable ) Randall B. Rosenbaum, ) Judge Presiding.

PRESIDING JUSTICE KNECHT delivered the judgment of the court. Justices Turner and Holder White concurred in the judgment.

ORDER

¶1 Held: The appellate court affirmed in part, reversed in part, and remanded for further proceedings, concluding respondent demonstrated the trial court’s classification of both the rental income from petitioner’s nonmarital property and his Roth individual retirement account were erroneous but his other contentions of error were meritless.

¶2 In December 2017, petitioner, Lisa Romero, filed a petition to dissolve her marriage

to respondent, John B. Levold. The parties had been married since December 1999. No children

were born or adopted during the marriage. The matter proceeded to trial concerning the disposition

of property on April 12, April 25, and July 23, 2019. Following the trial and the receipt of written

closing arguments, the trial court issued a written opinion and order. Respondent thereafter filed a

motion to reconsider, which raised various challenges to the court’s findings in its opinion and

order. After receiving a response from petitioner, the court entered another written opinion and order, rejecting all of respondent’s challenges. Respondent now appeals.

¶3 On appeal, respondent argues the trial court erroneously (1) classified rental income

from petitioner’s nonmarital property as nonmarital property or, alternatively, declined to accord

him a credit for his contributions to that nonmarital property, (2) classified his Roth individual

retirement account (IRA) as marital property, (3) classified the entirety of his State Universities

Retirement System (SURS) account as marital property, (4) valued the marital residence and

vehicles, (5) valued the parties’ retirement accounts, and (6) refused to offset petitioner’s share of

the marital property by the rental income lost from the two marital properties. For the reasons that

follow, we affirm in part, reverse in part, and remand for further proceedings.

¶4 I. BACKGROUND

¶5 The following is gleaned from the record presented as it relates to the issues

presented in this appeal.

¶6 A. Rental Income From Nonmarital Property

¶7 Prior to the parties’ marriage, petitioner purchased a residential property located at

409 Irvine Road in Champaign, Illinois (409 Irvine). The parties then resided at 409 Irvine after

their marriage. They later purchased and moved into a residential property located at 1919 Trout

Valley in Champaign (1919 Trout). To purchase 1919 Trout, the parties obtained a loan which was

secured by a mortgage against 409 Irvine. In addition, the parties purchased two investment

residential properties in Champaign located at 2815 Natalie Drive (2815 Natalie) and 2619 Natalie

Drive (2619 Natalie).

¶8 After moving into 1919 Trout, the parties, who worked full-time at the University

of Illinois, began renting out 409 Irvine and then did so for approximately eight years. They also

rented out 2815 Natalie and 2619 Natalie. Both parties showed the properties to prospective tenants

-2- and signed leases. Petitioner handled all the financial matters related to the properties. She

established three separate checking accounts for the properties. She deposited the rent payments

for the properties into the associated checking accounts and paid related expenses, such as property

taxes and condominium fees, from those funds. Respondent, in turn, handled most of the

maintenance related to the rental properties. With respect to 409 Irvine, the division of labor was

consistent with the other rental properties. The leases for 409 Irvine were signed by both parties

and directed the tenants to pay rent to petitioner. Respondent testified he made substantial

improvements to 409 Irvine over the years by painting, replacing carpeting, staining a deck door,

repairing parquet flooring, and redoing a ceiling in a garage. Petitioner testified she paid more than

$40,000 on the loan which was secured by a mortgage against 409 Irvine with rent payments she

obtained from 409 Irvine.

¶9 Petitioner sought an amount in excess of $40,000 for the payment of marital debt,

the loan which was used to purchase 1919 Trout, with her nonmarital property, the rental income

from 409 Irvine. Respondent objected, arguing, even though 409 Irvine was petitioner’s nonmarital

property, any rental income from 409 Irvine was marital property. Accordingly, respondent sought

one-half of the rental income from 409 Irvine or, to the extent the trial court found the rental

income was nonmarital property, reimbursement for his personal efforts which improved the

nonmarital property. In response, petitioner maintained the rental income from 409 Irvine was

nonmarital property, asserting it was “not attributable to the personal effort of a spouse.” She

further argued respondent did not present evidence indicating his personal efforts related to 409

Irvine were significant and resulted in substantial appreciation.

¶ 10 The trial court first considered whether the rental income from 409 Irvine was

marital or nonmarital property. The court acknowledged, because the rental income was acquired

-3- during the marriage, it was petitioner’s burden to show the rental income was nonmarital property.

Turning to the relevant statutory language, the court noted income from a nonmarital asset is

nonmarital property only if it is not attributable to the personal efforts of a spouse. The court found

the statutory language was vague:

“What does ‘attributable’ mean? Is it that the spouse helped create

the income? Is it that there is an ongoing effort to produce the

income? Most importantly, does there have to be a certain amount

of personal effort for the entire income to be marital?”

The court concluded, “Because of the vagueness of the statute, the Court is not inclined to find

that [respondent’s] personal efforts rose to a specific level to convert the entire rental income over

the [eight] years into marital income.” The court acknowledged its finding was a “close call.” The

court next considered whether the parties were entitled to their respective requests for

reimbursement related to 409 Irvine. As to petitioner, the court found petitioner was entitled to a

$20,000 credit as she had been paying a marital debt with the nonmarital rental income. As to

respondent, the court found respondent was not entitled to reimbursement as he had not established

his efforts were significant and resulted in substantial appreciation.

¶ 11 Respondent challenged the trial court’s finding that the rental income from 409

Irvine was nonmarital property in his motion to reconsider. Respondent argued the evidence

showed the rental income was “attributable to the personal efforts of both spouses.” The trial court

rejected respondent’s challenge. In doing so, the court noted, “The analysis turns on whether the

rental income was attributable to the personal efforts of [r]espondent.”

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Bluebook (online)
2021 IL App (4th) 200326-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-romero-illappct-2021.