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In re Marriage of Yabush
220 N.E.3d 21
Ill. App. Ct.
2021
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Background

  • Parties divorced by agreed judgment in 2011; child support set at $2,226/month (28% of petitioner’s net base pay) plus 28% of any bonuses/commissions, and annual income documentation required.
  • Petitioner (Yabush) was a salesperson at time of judgment; income reported about $138,000 in 2011 but historically fluctuated. Respondent (Melinda) earned about $85,000 in 2011.
  • Petitioner formed his own marketing company in late 2017; his income rose to about $513,000 in 2017 and roughly $2.2 million in 2018.
  • Petitioner petitioned in 2018 to decrease his child support obligation, arguing the large income increase (and change in employment) was a substantial change in circumstances and that continued application of 28% would produce an unjust windfall to respondent.
  • Trial court denied modification, finding the dissolution judgment’s language (28% of bonuses/commissions) showed the parties contemplated fluctuating performance pay and therefore petitioner’s income increase was not a substantial change in circumstances; appellant appealed and the appellate court reversed and remanded.

Issues

Issue Yabush (Plaintiff/Appellant) Melinda (Defendant/Appellee) Held
Whether petitioner’s jump to ~$2.2M constitutes a "substantial change in circumstances" supporting modification of child support The 16x income increase and change to new business/compensation is a substantial change warranting reconsideration of support The settlement’s 28% provision for bonuses/commissions shows the parties anticipated performance-based income fluctuations, so the increase was contemplated and not a substantial change Reversed: appellate court held the scale and source of the increase (formation of petitioner’s own company and seven-figure income) was not shown to have been contemplated by the agreement and could be a substantial change
Whether the marital settlement’s "bonus/commission" clause precludes finding a substantial change Clause covers performance-based pay but does not say it covers any and all additional income or new forms of compensation; thus it does not foreclose modification Clause should be read as a true-up that contemplates additional income, so no modification is needed Held for appellant: clause only expressly covered bonuses/commissions, not a wholesale change in employment or seven-figure earnings from a new company — the court erred in finding the parties contemplated this magnitude/type of increase
Whether the appeal was properly before the appellate court given post-judgment proceedings Yabush argued appeal became effective when remaining matters were resolved and proper notices were filed Melinda argued earlier filings were premature because other matters remained pending (no Rule 304(a) finding) Appellate court found jurisdiction: post-entry of a December 4, 2020 agreed custody order all matters were resolved and the appeal complied with Rules 301/303; appellate review proceeds

Key Cases Cited

  • In re Marriage of Singleteary, 293 Ill. App. 3d 25 (1997) (increase in obligor’s income may constitute a substantial change)
  • In re Marriage of Barnard, 283 Ill. App. 3d 366 (1996) (two-step process for modifying a support order: threshold factual finding of change, then recalculation)
  • In re Marriage of Armstrong, 346 Ill. App. 3d 818 (2004) (manifest-weight standard applies to factual determination that a substantial change occurred)
  • Blum v. Koster, 235 Ill. 2d 21 (2009) (interpretation of settlement agreements reviewed de novo)
  • In re Parentage of J.W., 2013 IL 114817 (2013) (definition of manifest weight of the evidence)
  • In re Marriage of Bates, 212 Ill. 2d 489 (2004) (deference to reasonable inferences supporting trial court when evidence permits multiple inferences)
  • In re Marriage of Gutman, 232 Ill. 2d 145 (2009) (finality and appealability principles when multiple claims remain)
  • Koon v. United States, 518 U.S. 81 (1996) (abuse of discretion standard where trial court commits legal error)
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Case Details

Case Name: In re Marriage of Yabush
Court Name: Appellate Court of Illinois
Date Published: Dec 22, 2021
Citation: 220 N.E.3d 21
Docket Number: 1-20-1136
Court Abbreviation: Ill. App. Ct.