In re Marriage of Wig

2020 IL App (2d) 190929
Appellate Court of Illinois·Decided December 29, 2020·No. 2-19-0929·Published·Cited by 12 cases

Opinion

No. 2-19-0929

Opinion filed December 29, 2020

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

In re MARRIAGE OF ) Appeal from the Circuit Court DAVID WIG, ) of Du Page County.

)

Petitioner-Appellee, )

)

and ) No. 17-D-1444 )

JUDITH WIG, n/k/a Judith Progo, ) Honorable ) Timothy J. McJoynt,

Respondent-Appellant. ) Judge, Presiding.

JUSTICE SCHOSTOK delivered the judgment of the court, with opinion.

Presiding Justice Bridges and Justice McLaren concurred in the judgment and opinion.

OPINION

¶1 The marriage of petitioner, David Wig, and respondent, Judith Wig, n/k/a Judith Progo, was dissolved in August 2018. Incorporated into the dissolution judgment was the parties’ marital settlement agreement. The agreement provided a calculation to determine the amount of maintenance that respondent would pay petitioner. The agreement also provided that, if a change in the law affected the tax consequences of the maintenance ordered in the agreement, the parties could negotiate a change in the agreement. If those efforts failed, the parties would submit the matter to the trial court for resolution. A few days after the parties’ marriage was dissolved, respondent lost her job. In September 2018, under the terms of the dissolution judgment, petitioner submitted a qualified domestic relations order (QDRO) to his former employer. Garnishment of

petitioner’s pension began in October 2018. Respondent obtained new employment in November 2018, and in December 2018, petitioner moved to set maintenance. Effective January 1, 2019, section 504(b-1)(1)(A) of the Illinois Marriage and Dissolution of Marriage Act (Act) (750 ILCS 5/504(b-1)(1)(A) (West 2018)) (the 2019 version) was amended as to its formula for the initial setting of maintenance. 1 The former version of section 504(b-1)(1)(A) was added by Public Act 100-520, § 15 (eff. Jan. 1, 2018) and is found in the 2017 supplement to West’s Illinois Compiled Statutes (the former version) (see 750 ILCS 5/504(b-1)(1)(A) (West Supp. 2017)).

¶2 In February 2019, the QDRO concerning petitioner’s pension was entered in the trial court. Thereafter, the parties disagreed over which version of section 504(b-1) the trial court should apply in setting the specific dollar amount of maintenance. The court chose the 2019 version but applied the provision on modification of maintenance, rather than the provision governing the initial setting of maintenance. Compare 750 ILCS 5/504(b-1)(1)(A-1) (West 2018) with id. § 504(b-1)(1)(A).

¶3 Respondent timely appeals from that order. 2 For the reasons that follow, we affirm.

1 The section amended by Public Act 100-923, § 10 (eff. Jan. 1, 2019) is found in the

2018 version of West’s Illinois Compiled Statutes.

2 Respondent initially appealed while other matters remained pending in the trial court.

Those matters have since been resolved, allowing us now to exercise jurisdiction over this appeal. See In re Marriage of Knoerr, 377 Ill. App. 3d 1042, 1050 (2007) (if the trial court’s jurisdiction has lapsed, such that it is too late to file a timely notice of appeal, the appellant may invoke the savings provision of Illinois Supreme Court Rule 303(a)(2) (eff. July 1, 2017), and the appellate court will give effect to the appellant’s premature notice of appeal once the last pending claim is

¶4 I. BACKGROUND

¶5 After almost 29 years of marriage, the parties’ marriage was dissolved. The agreement incorporated into the August 22, 2018, dissolution judgment stated the parties’ annual incomes, divided the parties’ marital assets and debts, and provided petitioner with maintenance. Concerning the parties’ incomes, the agreement indicated that respondent earned an annual salary of $54,000 and that petitioner, who was retired, received $19,260 in annual social security benefits and $18,123.96 in annual pension benefits. The parties’ marital property and debts, which were not large, were divided essentially equally. The section of the agreement addressing maintenance provided:

“(a) Beginning immediately upon [respondent] receiving pension benefits from [petitioner’s] pension (pursuant to QDRO), [respondent] shall pay maintenance to [petitioner] pursuant to statutory guidelines, subject to the 40% cap, based upon the following formula: Thirty percent (30%) of [respondent’s] gross income, inclusive of benefits received from [petitioner’s] pension minus twenty percent (20%) of [petitioner’s]

gross income, inclusive of Social Security benefits and pension benefits received by [petitioner] (exclusive of pension benefits paid to [respondent]). *** Upon entry of the QDRO dividing [petitioner’s] pension, the attorneys for the parties shall immediately determine the parties’ incomes and the dollar amount of maintenance and enter an order setting the dollar amount of maintenance.

(b) Payments for maintenance shall be modifiable upon a showing of a substantial change in circumstances.

resolved).

***

*** It is agreed and understood by the parties that all of the payments made by [respondent]

to [petitioner] pursuant to this [s]ection *** of this [a]greement shall constitute maintenance payments which are imposed on or incurred by [respondent] under a written instrument within the meaning of Section 71 of the Internal Revenue Code, as amended, and as of now in effect, and of similar provisions of future laws, and that such payments will be includable in [petitioner’s] gross income and deductible by [respondent] for federal, state, and local (if any) tax purposes. Inasmuch as this [a]greement has been negotiated and executed on the assumption that the payments made by [respondent] to [petitioner]

pursuant to this [s]ection *** of this [a]greement will be deductible by [respondent] and taxable to [petitioner], if any or all of such payments are not so includable and deductible as a result of a final and binding judicial or administrative determination, or because of amendment or repeal of the applicable statutory provisions or their authoritative interpretation, then any such payment(s) otherwise due [petitioner] pursuant to this [s]ection *** of this [a]greement may be adjusted by an amount to be negotiated by the parties. In the event that the parties are unable to agree upon a readjustment of these provisions to take account of the changed tax impact, then this matter shall be submitted to the [trial court] for final and binding determination of the payments from [respondent] to [petitioner].”

¶6 The 30%-20% calculation in the agreement mirrored the formula in the former version of section 504(b-1)(1)(A) of the Act for the initial setting of maintenance. See 750 ILCS 5/504(b- 1)(1)(A) (West Supp. 2017).

¶7 Ten days after the parties’ marriage was dissolved, respondent was fired from her job. At the end of September 2018, petitioner delivered the required QDRO to his former employer. In the beginning of October 2018, petitioner’s former employer began garnishing petitioner’s pension. At the end of November 2018, respondent obtained new employment, with an annual income of $53,000. On December 11, 2018, after learning that respondent had obtained new employment, petitioner petitioned to set the dollar amount of maintenance.

¶8 Effective January 1, 2019, before the trial court’s hearing on the petition to set maintenance, section 504 was amended in two respects pertinent here. First, an amendment to section 504(b-1)(1)(A) (750 ILCS 5/504(b-1)(1)(A) (West 2018)) altered the formula for the initial setting of maintenance. This amendment was in response to a change in federal law that eliminated the deductibility of maintenance for federal tax purposes. See Pub. L. No. 115-97, 131 Stat. 2089 (2017) (repealing 26 U.S.C. § 71).

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