Effective January 1, 2015, Illinois attorneys and judges will have stricter guidelines in calculating spousal maintenance pursuant to Public Act 98-0961. The guidelines will be used only for couples whose combined gross income is less than $250,000 annually.

The court is still required to first consider whether maintenance is appropriate, after consideration of all relevant factors pursuant to 750 ILCS 5/504(a)(1-12) which include factors such as: income of the parties, needs of the parties, earning capacity of the parties, the standard of living established during the marriage, age and physical and emotional state of the parties, and duration of the marriage.

CALCULATING AMOUNT
If the court finds that maintenance is appropriate,the court shall calculate maintenance by the following calculation, so long as the payee/obligee does not then receive an amount exceeding 40% of the parties combined gross income:

30% of payor/obligor’s annual gross income – 20% of payee/obligee’s annual gross income = ANNUAL MAINTENANCE AMOUNT

EXAMPLE 1:
Husband (Payor/Obligor) earns $85,000 gross annually. Wife (Payee/Obligee) earns $40,000 gross annually.

$85,000 x 30% = $25,500
$40,000 x 20% = 8,000
$25,500 – $8,000 = $17,500
$85,000 + $40,000 = $125,000 (parties combined gross income)
$125,000 x 40% = $50,000 (40% of the parties combined gross income)

Under the calculation, Husband would owe Wife $17,500 annually in spousal maintenance. Or would he? Do not forget the caveat of the statute, which is the party receiving maintenance cannot receive excess of 40% of the parties’ combined gross income after adding the receiving party’s (payee/obligee’s) gross income plus maintenance.

If Wife received $17,500 annually, she would receive an amount that is in excess of 40% of the parties combined gross income.

$85,000 + $40,000 = $125,000 (parties combined gross income)
$125,000 x 40% = $50,000 (40% of the parties combined gross income)
Husband: $85,000 – $17,500 = $67,500
Wife: $40,000 + $17,500 = $57,500

In this situation, the most important number is $50,000, which is 40% of the parties combined gross income. Wife cannot receive an amount in excess of this. Here, Wife earns $40,000 a year. If Wife received the initially calculated maintenance she would then gross $57,500, which is $7,500 more than 40% of the parties’ combined gross income. Therefore Wife’s maintenance is capped at $10,000 annually ($50,000 – $40,000 = $10,000).

EXAMPLE 2:
Wife earns $180,000 gross annually. Husband earns $60,000 gross annually.

$180,000 x 30% = $54,000
$60,000 x 20% = $12,000
$54,000 – $12,000 = $42,000
$180,000 + 60,000 = $240,000 (parties combined gross income)
$240,000 x 40% = $96,000 (40% of the parties combined gross income)

Again, here, just as in Example 1, the maintenance amount is capped. Husband’s maintenance amount based the “ 30% – 20% calculation” is $42,000 annually. However, it is capped at $36,000 based on the “not to exceed 40% caveat” ($96,000 – $60,000 = $36,000).

CALCULATING DURATION

Under the revised statute, calculating the duration of maintenance is a bit simpler than calculating amount. Duration is calculated as follows:

Length of Marriage (years) / Percentage %
0-5 / 20%
5-10 / 40%
10-15 / 60%
15-20 / 80%
20+ / 100% or Permanent (Discretion of Court)

EXAMPLE 1
The parties were married for 5 years and therefore the maintenance (if any) would run for 20% of the length of the marriage (5 years x 20% = 1). The maintenance award would continue for one year.

EXAMPLE 2
The parties were married for 18 years and therefore the maintenance (if any) would run for 80% of the length of the marriage (18 x 80% = 14.4). The maintenance award would continue for 14 years and 5 months.

 

Author: Ellen Grennier, Associate Attorney.