A high-net-worth divorce is not governed by special Illinois divorce laws. The Illinois Marriage and Dissolution of Marriage Act applies regardless of how much the marital estate is worth. The court still classifies property, assigns each spouse’s non-marital property to that spouse, divides marital property, determines maintenance, calculates child support, and enters a final judgment dissolving the marriage. In a normal divorce, the main questions often are simple enough to answer with tax returns, paystubs, a house appraisal, retirement account statements, and the statutory support formulas. Yet, in a high-net-worth divorce, those tools may only provide the beginning of the analysis. Income might come from wages, bonuses, retained earnings, carried interest, trusts, distributions, stock options, restricted stock, rental properties, private investments, or business entities. Assets may be valuable but illiquid. A spouse may appear wealthy on paper but have limited monthly cash flow. Another spouse may have access to lifestyle benefits that never appear as ordinary W-2 income. Illinois law divides marital property “in just proportions” and requires the court to assign each spouse’s non-marital property to that spouse. 750 ILCS 5/503(d). Thus, a lawyer representing a high-net-worth individual is unable to treat the case as a simple 50/50 division. The lawyer must determine what property exists, whether each asset is marital or non-marital, what each asset is worth, and whether the proposed division can truly be performed. The same is true for support. Illinois child support starts with an income-shares calculation; the court determines each parent’s monthly net income, adds the incomes together, selects the corresponding amount from the schedule of basic child support obligations, and calculates each parent’s percentage share. 750 ILCS 5/505(a)(1.5). When the parents’ combined income exceeds the schedule, the statute states that “[a] court may use its discretion to determine child support,” but “the basic child support obligation shall not be less than the highest level of combined net income set forth in the schedule.” 750 ILCS 5/505(a)(3.5). Maintenance changes in high-income cases, as well. Illinois guideline maintenance is applicable “[i]f the combined gross annual income of the parties is less than $500,000” and the payor has no prior child support or maintenance obligation, unless the court finds the guideline application inappropriate. 750 ILCS 5/504(b-1)(1). When it does not apply, “[a]ny non-guidelines award of maintenance shall be made after the court’s consideration of all relevant factors” in section 504(a). 750 ILCS 5/504(b-1)(2). In sum, a […]
