The recent amendment to the Illinois maintenance statute brought with it many significant changes to the established maintenance law, the most substantial of which is new formulaic approach to the calculation of a maintenance award. The maintenance guidelines formula provides that a court must determine the gross incomes of both parties and then apply a mathematical equation to the parties’ gross incomes to arrive at the maintenance amount.

The amendment provides that, for purposes of calculating the maintenance amount, the term “gross income” means all income from all sources, within the scope of that phase in Section 505 of the Illinois Marriage and Dissolution of Marriage Act. Section 505, which provides for child support, has been the focus of extensive litigation and has developed a significant body of case law interpreting the phrase “income from all sources.” Because of the express reference to Section 505 found within Section 504, that body of case law is now instructive of the phrase “income from all sources” as defined within a maintenance context. I have provided a list of what is included and what is excluded as income under the established case law.

Included as Income

• Something that comes in as an increment or addition. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004).
• A gain or recurrent benefit that is usually measured in money. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004).
• The value of goods and services received by an individual in a given period of time. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004).
• The money or other form of payment that one receives, usually periodically, from employment, business, investments, royalties, gifts and the like. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004).
• A return on an investment of labor or capital, thereby increasing the wealth of the recipient. In re Marriage of Worrall, 334 Ill. App. 3d 550, 553-54 (2d Dist. 2002).
• Annual gifts received from parents. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004); In re Marriage of Anderson & Murphy, 405 Ill. App. 3d 1129 (3rd Dist. 2010).
• Annual loans with no repayment required. In re Marriage of Rodgers, 213 Ill. 2d 129 (2004); In re Marriage of Anderson & Murphy, 405 Ill. App. 3d 1129 (3rd Dist. 2010).
• Automobile allowances. In re Marriage of Anderson & Murphy, 405 Ill. App. 3d 1129 (3rd Dist. 2010).
• Bonuses and commissions. In re Marriage of Anderson & Murphy, 405 Ill. App. 3d 1129 (3rd Dist. 2010).
• IRAs awarded in a marital property settlement can be regarded as income when liquidated. In re Marriage of Eberhardt, 387 Ill. App. 3d 226 (1st Dist. 2008); In re Marriage of Lindmann, 356 Ill. App. 3d 462 (2d Dist. 2005).
• Interest and appreciation earnings from an IRA. In re Marriage of O’Daniel, 382 Ill. App. 3d 845 (4th Dist. 2008).
• Proceeds from pensions. In re Marriage of Klomps, 286 Ill. App. 3d 710 (5th Dist. 1997).
• Distribution of stock if sold pursuant to an employment bonus-based option. In re Marriage of Colangelo, 355 Ill. App. 3d 383 (2d Dist. 2005).
• Worker’s compensation awards. Department of Public Aid ex rel. Jennings v. White, 286 Ill. App. 3d 213 (3d Dist. 1997).
• Income reported from the conversion of funds from an IRA to a Roth IRA. In re Marriage of Pratt, 2014 IL App (1st) 130465.
• Military allowances. In re Marriage of McGowan, 265 Ill. App. 3d 976  (1st Dist. 1994); In re Marriage of Baylor, 324 Ill. App. 3d 213 (4th Dist. 2001).

Excluded as Income

• Income used to pay the debt created to secure the income. In re Marriage of O’Daniel, 382 Ill. App. 3d 845 (4th Dist. 2008).
• IRA withdrawals to the extent they represent money used to fund the account. In re Marriage of O’Daniel, 382 Ill. App. 3d 845 (4th Dist. 2008).
• Proceeds of a reverse stock split used to purchase other investment assets. In re Marriage of Anderson & Murphy, 405 Ill. App. 3d 1129 (3rd Dist. 2010).
• Proceeds form the sale of a residence reinvested into another residence. In re Marriage of Baumgartner, 384 Ill. App. 3d 39 (1st Dist. 2008).
• Residential mortgage loan made by a bona fide lender. In re Marriage of Baumgartner, 384 Ill. App. 3d 39 (1st Dist. 2008).
• Regular withdrawals from a savings account. In re Marriage of McGrath, 2012 IL 112792.
• Life insurance premiums that were paid by a corporation. In re Marriage of Heil, 233 Ill App. 3d 888 (5th Dist. 1992).

Undecided

• There is a split in decisions wether withdrawals from an IRA are included as income. In re Marriage of Eberhardt, 387 Ill. App. 3d 226 (1st Dist. 2008); In re Marriage of Lindmann, 356 Ill. App. 3d 462 (2d Dist. 2005); In re Marriage of O’Daniel, 382 Ill. App. 3d 845 (4th Dist. 2008).