In re Marriage of Arjmand
998 N.E.2d 686
Ill. App. Ct.2013Background
- Parties married in 2001; no children of the marriage but husband (Masud) adopted respondent’s two children from a prior marriage. Divorce judgment entered July 22, 2009 incorporating a marital settlement agreement (MSA) and joint parenting agreement (JPA).
- At prove-up Masud (with counsel) testified the MSA listed all assets, gave Muneeza more than 50% of marital assets, provided $2,000/month child support (stated to be ~28% of his net), and waived maintenance; Muneeza proceeded pro se and affirmed she understood and signed voluntarily.
- Muneeza filed a section 2-1401 petition (Apr 2011) alleging MSA was procured by coercion and fraudulent concealment of assets; an 11-day evidentiary hearing followed.
- Evidence showed Masud had significant stock (Accenture founder shares) sold during the marriage (proceeds ~$8.56M), extensive real estate investments and business entities, and varying representations of net worth and income in financial statements and tax returns (personal statements showing net worth ~$16–19M; tax returns and other records showing high income years and inconsistencies).
- Trial court found Masud misrepresented or failed to disclose assets and income at the prove-up, the asset division was substantially unequal, child support did not meet statutory guidelines, and the MSA was unconscionable; it vacated the MSA but left the dissolution judgment intact and ordered updated discovery for equitable resolution.
Issues
| Issue | Plaintiff's Argument (Masud) | Defendant's Argument (Muneeza) | Held |
|---|---|---|---|
| Whether section 2-1401 relief was proper to vacate the MSA | Petition should be denied; Muneeza failed due diligence and had affirmed agreement at prove-up | MSA was unconscionable/procured by fraud/coercion and Masud concealed assets/income | Trial court did not err — MSA vacated under 2-1401 due to unconscionability and nondisclosure |
| Whether MSA was substantively/procedurally unconscionable | Classifications and division agreed by parties should bind court; no coercion | Agreement is one-sided, lacked disclosure, child support deviated from guidelines without explanation | Agreement found unconscionable (substantive and procedural factors) and vacated |
| Whether nonmarital funds were transmuted into marital property | Proceeds from founder shares traced to purchase of investments; therefore nonmarital retained | Accounts were joint, parties participated in enterprises, and tracing failed; presumption of marital property applies | Court reasonably found transmutation/presumption of marital property not rebutted by clear and convincing evidence |
| Whether child support in MSA complied with statutory guidelines | Child support valid; social security benefits for children offset support; proceeds need not be treated as income | $2,000/month far below guideline amount given Masud’s income; social security does not fully offset obligation | Court correctly found $2,000 did not meet statutory guidelines; determination to revisit child support remanded for recalculation |
Key Cases Cited
- In re Marriage of Johnson, 339 Ill. App. 3d 237 (Ill. App. Ct.) (2-1401 purpose and requirements)
- Paul v. Gerald Adelman & Associates, Ltd., 223 Ill. 2d 85 (Ill. 2006) (section 2-1401 relief lies within trial court discretion)
- People v. Vincent, 226 Ill. 2d 1 (Ill. 2007) (standards discussed in appellate review context)
- Blisset v. Blisset, 123 Ill. 2d 161 (Ill. 1988) (agreements as to property/maintenance not binding if unconscionable)
- In re Marriage of McGlothlin, 312 Ill. App. 3d 1145 (Ill. App. Ct.) (misrepresentation/concealment can warrant vacatur of settlement)
- In re Marriage of Richardson, 237 Ill. App. 3d 1067 (Ill. App. Ct.) (unconscionability focuses on economic positions immediately after agreement)
- In re Marriage of Heroy, 385 Ill. App. 3d 640 (Ill. App. Ct.) (rules on transmutation and joint accounts)
- In re Marriage of Henry, 156 Ill. 2d 541 (Ill. 1993) (when social security benefits may satisfy support obligations)