In re Marriage of McGrath, 2012 IL 112792

Dissolution of Mary Ellen McGrath and Martin McGrath on Sept. 14, 2007; marital settlement and parenting agreements incorporated.
Respondent was unemployed and living off assets awarded in the divorce; he regularly withdrew about $8,500 monthly from a savings account.
Circuit court (Feb. 23, 2010) ordered $2,000 monthly child support, stating it did not impute income and based on living expenses and assets available.
The court effectively treated passive net income from assets as income, citing case law allowing asset withdrawals to support children.
Appellate Court, First District, affirmed the decision; respondent challenged inclusion of savings withdrawals as net income.
Illinois Supreme Court reversed, held that savings withdrawals are not income for net income calculation and remanded for new calculation.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether savings withdrawals count as net income for support	McGrath: withdrawals are income under net income definition	McGrath: withdrawals should be treated as income to support children	Withdrawals are not income; reverse and remand

In re Rogers, 213 Ill. 2d 129 (2004) (defines net income and requires proper statutory interpretation)
In re Lindman, 356 Ill. App. 3d 462 (2005) (IRA disbursements as potential income; appellate discussion cited by court)
In re Eberhardt, 387 Ill. App. 3d 226 (2008) (IRA considerations in income determinations under 505(a))
In re Gosney, 394 Ill. App. 3d 1073 (2009) (inclusion of a nonworking parent’s withdrawals in net income discussed)
In re O’Daniel, 382 Ill. App. 3d 845 (2008) (Fourth District view on IRA withdrawals as income)