In re The Marriage of Josephson

2022 IL App (2d) 210031-U
Appellate Court of Illinois·Decided June 28, 2022·No. 2-21-0031·Unpublished

Opinion

No. 2-21-0031

Order filed June 28, 2022

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

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

In re THE MARRIAGE OF ) Appeal from the Circuit Court CRAIG A. JOSEPHSON, ) of Lake County.

)

Petitioner-Appellee and )

Cross-Appellant, )

v. ) No. 18-D-1438 )

CYNTHIA M. BARRILE-JOSEPHSON, ) Honorable Respondent-Appellant and ) Charles Smith, Cross-Appellee. ) Judge, Presiding.

JUSTICE SCHOSTOK delivered the judgment of the court.

Justices McLaren and Jorgensen concurred in the judgment.

ORDER

¶1 Held: Trial court erred in failing to equitably distribute certain marital property, but it did not err in any other respect, including its valuation of the parties’ personal property, the setting of maintenance, its refusal to require life insurance, and its award of attorney fees.

¶2 In December 2020, the circuit court of Lake County entered a judgment dissolving the marriage between the petitioner, Craig Josephson, and the respondent, Cynthia Barrile-Josephson. At the same time, it ordered Craig to contribute to Cynthia’s attorney fees. Both parties now appeal certain aspects of the court’s rulings.

¶3 I. BACKGROUND

¶4 Craig and Cynthia married in 1993. At the time, Cynthia had two children from a previous marriage. Another child was born to the parties during the marriage. All of the children are now adults.

¶5 In 2018, Craig filed a petition for dissolution. In October 2019, the parties entered an agreed order stating in part: “The parties stipulate that Cynthia shall receive guideline maintenance and that no income will be imputed to Cynthia for employment purposes in connection with her maintenance award.” Neither party ever filed a notice of intent to assert a claim of dissipation. The four-day trial took place in August 2020. The trial court delivered oral rulings in October and November 2020, and the final judgment of dissolution was entered in December.

¶6 As relevant here, the evidence at trial showed that, at the time of trial, Cynthia was 62 years old, had ongoing medical issues, and was last employed in 2015. Craig was 51 years old, in good health, and owned a company through which he provided project management services to a medical device company. Under the contract then in place, which ran through the end of 2020 and had been extended twice already, Craig was paid $7400 per week, or about $355,000 over 48 weeks of work, which the trial court found was a reasonable work-year.

¶7 Craig moved to California for work in August 2017. As noted, he filed his dissolution petition in August 2018. That same month, each party withdrew half of their joint account and transferred that sum (about $33,500) into accounts in their own names.

¶8 In December 2018, Cynthia moved for temporary support. In February 2019, the trial court ordered Craig to pay the mortgage and other expenses of the marital home. In April 2019, Craig was ordered to pay $1800 per month in temporary maintenance, along with certain medical bills and car-related expenses.

¶9 In February 2019, Craig began living in his girlfriend’s home. For 15 months he paid no rent and did not contribute to the utilities, but in April 2020 he paid her a $9000 “security deposit” and began paying rent of $3000 per month plus utilities. The trial court found that the security deposit was a marital asset, as it had been paid using marital funds.

¶ 10 The marital home was sold in October 2019. Cynthia took many of the furnishings to her new home in Arkansas or stored them, at a total cost of $29,855.50. Craig received his golf ball collection and certain tools that he had taken from the home in 2018. Other personal property was disposed of. There were no proceeds from that disposition. The parties did not submit any professional estimates of the value of the personal property that each received or that was disposed of. Craig asserted that the personal property in Cynthia’s possession was worth over $156,000, but he conceded that he had no training or experience in property valuation, and neither party submitted an objective basis for the property’s fair market value at the time of trial. The trial court found that neither Craig’s testimony regarding the value of the property nor Cynthia’s testimony that the property had no value was credible. Noting that it had not received any other evidence regarding that value and that case law permitted it to use its own experience to determine the value of property, the trial court set the property’s value at the amount that Cynthia had paid to transport and store it: $29,855.50.

¶ 11 The trial court awarded Cynthia indefinite maintenance in the guideline amount of $5,787.42 per month, retroactive to March 2020. In determining property distribution, it found that there was no nonmarital property. As to marital property, it found that both parties had contributed substantially to the marriage and that, due to the parties’ different economic potentials moving forward, Cynthia should receive 55% of the marital property and Craig should receive 45%. It found that the parties’ investment accounts, retirement accounts, home sale proceeds,

personal property, and airline miles should be divided in this 55/45 proportion as of the date of dissolution.

¶ 12 However, the trial court also stated that it viewed the parties’ August 2018 split of their joint account as the moment when “they really ceased cohabiting and contributing to the marriage.” It therefore denied Cynthia’s request to apportion the checking account balances and debts accrued by each party after that point. At the time of trial, Cynthia had $189.09 in her checking account and credit card debt of $14,451.66, which Cynthia testified arose from her living expenses that were not covered by her temporary maintenance. Craig’s checking account stood at $6,462.10 and his credit card debt was $3,603.10.

¶ 13 For the same reason, the trial court also declined to distribute as marital property the value of the new cars each party bought in 2019. Cynthia’s Toyota Prius cost $26,000; Cynthia used $11,000 of the money from her half of the joint account and financed the rest. In addition, Craig was ordered to contribute $600 per month for Cynthia’s car expenses beginning in June 2019. Craig’s Mercedes Benz cost $56,088.055, and the amount paid by Craig was reduced by his $4500 trade-in of a marital car. The trial court treated the trade-in value of the marital car as a marital asset and divided it in the same proportion as the rest of the marital estate. However, as to the newer cars, it simply assigned each party their own vehicle, stating that the cars’ value to the marital estate was zero.

¶ 14 During the trial, the parties had stipulated that Craig had invoiced his employer $29,400 for services rendered in the month or so before trial but had not yet received payment of those invoices. Cynthia argued that these invoices should be treated as an asset of the marriage and therefore divided 55/45. The trial court rejected this argument, viewing the invoices as simply the

mechanism for the payment of Craig’s income, the appropriate portion of which would be paid to Cynthia as maintenance, and that to count the invoices as an asset would be double-dipping.

¶ 15 Craig’s motion to reconsider certain aspects of the judgment was denied. Cynthia’s appeal, and Craig’s cross-appeal, followed.

¶ 16 II. ANALYSIS

¶ 17 A. Cynthia’s Appeal

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