2020 IL App (3d) 190132
Ill. App. Ct.2020Background
- Andrea filed for dissolution July 22, 2015 (married 1999; separated 2011; one child born 2000) and requested temporary and permanent child support and maintenance, including retroactive relief to the petition date.
- The parties entered an agreed temporary order (Nov. 4, 2015): Jeffrey to pay Andrea’s mortgage, car insurance, and $250/month for the child’s personal expenses.
- The court held a multi-day hearing (Aug. 2017). Andrea filed a position paper expressly asking for retroactive maintenance/support to July 22, 2015.
- In its Phase 2 Decision (Aug. 31, 2018) the circuit court (1) denied Jeffrey’s claimed depreciation deduction from Schedule F, (2) awarded retroactive unallocated maintenance and child support (initially $34,150), and (3) incorporated that decision into the dissolution judgment (Sept. 25, 2018). A post-trial recalculation reduced the award to $28,626.36.
- Jeffrey appealed, challenging (a) the court’s authority to award retroactive amounts beyond the temporary agreement, and (b) the denial of a deduction for nonaccelerated depreciation under the amended child-support statute. The appellate court affirmed.
Issues
| Issue | Plaintiff's Argument (Andrea) | Defendant's Argument (Jeffrey) | Held |
|---|---|---|---|
| Whether the trial court could award retroactive unallocated maintenance and child support from the petition date despite the agreed temporary order | Court may award retroactive maintenance/support to petition date; temporary payments get credit | Agreed temporary order limited obligations; court lacked authority to alter that agreement retroactively | Court: Section 501 authorizes retroactive awards to petition date; temporary orders are not binding on final decree; credit must be given for temporary payments |
| Whether nonaccelerated depreciation is deductible from business income for child-support calculations under the 2017 amendment to section 505 | Nonaccelerated depreciation should not reduce income; court properly excluded depreciation | Nonaccelerated depreciation is an ordinary and necessary business expense and should be deductible (Jeffrey sought the deduction) | Court: 2017 amendment expressly excludes accelerated depreciation; it is silent as to nonaccelerated depreciation, which may be deductible only if found to be an ordinary and necessary business expense required to carry on the business. Jeffrey failed to show the court abused its discretion in denying the deduction |
Key Cases Cited
- Kenly v. Kenly, 47 Ill. App. 3d 694 (Ill. App. 1977) (purpose of temporary maintenance is to balance equities while case pending)
- In re Marriage of Schroeder, 215 Ill. App. 3d 156 (Ill. App. 1991) (temporary orders are not binding on final decree)
- In re Marriage of Nelson, 297 Ill. App. 3d 651 (Ill. App. 1998) (pre-2017 law required depreciation to fit within debt-repayment category to qualify as deductible expense)
- Nerini v. Nerini, 140 Ill. App. 3d 848 (Ill. App. 1986) (discussing modification under section 510)
- In re Marriage of Pettifer, 304 Ill. App. 3d 326 (Ill. App. 1999) (same, modification precedent under section 510)