Chicago Illinois Family Law Blog
Life Insurance and Civil Union Spouses in Illinois
Now that Illinois’ civil union law is in effect, we will continue discussing the new benefits that have been granted to civil union couples in our ongoing blog series. In this post, we discuss life insurance in relation to civil union spouses.
Can life insurance be purchased to cover a civil union spouse?
Yes, life insurance can be bought to cover a civil union spouse. In order to buy insurance on someone else’s life and be designated as the beneficiary, it must be determined that someone has an “insurable interest” in the insured person’s life, meaning they would suffer losses, financial and otherwise, if the insured person died. Typically, insurance companies assume that close relatives, such as a spouse or child, have an insurable interest in an insured person’s life. Illinois’ civil union law guarantees that civil union spouses are treated equally as married spouses in regards to life insurance coverage and benefits.
Tax Problem Found for Civil Union Couples in Illinois
According to Illinois Radio Network, a problem has already been discovered in relation to taxes and civil union couples in Illinois, just one month after civil unions were made legal. The problem relates to income tax. Under state law, couples in a civil union are required to be treated the same as married couples, but there’s a catch.
Under tax law in Illinois, if a taxpayer files their federal income taxes separately, they are also required to file state taxes separately. Since federal law does not recognize civil unions, couples in a civil union have to file separate state tax returns. Since the health insurance benefits that a partner in a civil union receives for another are considered to be income and are taxed as such under federal law, and since the state applies the same figures, they are taxed under Illinois law, when it seems as though they shouldn’t be.
Why You Should Consider Signing a Confidentiality Agreement in an Illinois Divorce
A confidentiality agreement, or confidentiality protective order, outlines specific confidential information that both parties share with one another for purposes of their divorce litigation, but want to keep from public view or access. Under such an agreement or order, the parties agree that the information covered by the agreement will not be disclosed. These agreements may restrict both parties from using the information, or they may restrict only one party’s use of the information.
In most cases, these agreements are typically entered into for business purposes, but in some situations, a couple may sign a confidentiality agreement in Illinois. For example, signing such an agreement may be desirable if one spouse was in the public eye or if the couple ran a business together.
Catholic Adoption Agencies Sue Illinois Regarding Gay Adoption
NPR reports that controversy has erupted in Illinois regarding whether faith-based groups should be required to alter their practices and assist gay couples seeking to adopt. The new civil union law in Illinois has put the state and many faith-based organizations at odds with one another.
In particular, Catholic Charities agencies, located in five dioceses in Illinois, had received state funding to offer adoption and foster care services, and would only place children with straight single individuals living alone or straight married couples. Once the new law went into effect, one agency stopped its adoption services, concerned it would be required to allow same-sex couples to adopt or have discrimination lawsuits filed against them. Three other agencies put prospective parent licensing on hold and sued the state. Previously, the agencies had referred couples who were unmarried to other agencies, without regard to their sexual orientation.
Additional Health Insurance Rights Granted to Illinois Civil Union Spouses
We continue our blog series discussing the new benefits given to civil union couples in Illinois now that the civil union law is in effect, focusing on health insurance coverage in relation to continuation rights, Medicare eligibility, and more.
Are Civil Union Spouses Given Continuation Rights?
In the event of a death, divorce, retirement, or job loss, Illinois law permits individuals that are covered by a civil union spouse’s employer-based health insurance policy to remain covered even after hours are reduced or a the job is lost and results in the coverage’s termination, as well as when an employee retires, divorces the spouse, or dies. Under Illinois law, continuation rights equally apply to married spouses and civil union spouses.
Maria Shriver Files for Divorce from Arnold Schwarzenegger Citing Irreconcilable Differences
The Los Angeles Times reports that Maria Shriver filed for divorce from Arnold Schwarzenegger on Friday, July 1, ending the couple’s 25 years of marriage. Shriver cited “irreconcilable differences,” and also requested joint custody of her and the former California governor’s two minor-aged children. The couple also has two other older children.
In May, the couple announced their separation, followed by the stunning news that Schwarzenegger had fathered a child with a former household staff member. In addition to her custody request, Shriver also specified that certain property should be considered separate, including miscellaneous jewelry obtained and earnings made after her separation from Schwarzenegger. Reportedly, the couple does not have a prenuptial agreement.
Health Insurance Benefits for Civil Union Spouses in Illinois
This is a continuation of our blog series covering the impact that the new civil union law in Illinois has on the new benefits offering to civil union spouses.
Are Civil Union Spouses Given Health Insurance Coverage?
One of the most important questions the new law answers is whether or not health insurance policies have to provide coverage for civil union spouses. Yes, all HMO contracts and health insurance policies issued in Illinois are required to offer civil union couples the identical coverage given to married couples. Additionally, if a policy allows coverage for a married policyholder’s dependent children, the policy must also allow coverage for a civil union policyholder’s children. Rates for spousal or family coverage must not be different, regardless of whether the family consists of civil union or married spouses.
Bernie Madoff Fraud Victim Attempts to Renegotiate Divorce Settlement in Unusual New York Divorce Case
The New York Times reports on an unusual case in New York that has divided the legal community. In 2006, a couple divorced after 33 years of marriage and agreed to equally split their wealth. Two years later, however, the man wanted to revise their divorce settlement, following the news of the Bernie Madoff fraud case. The woman refused, and the man sued. The case has reached the highest court in New York.
While divorce agreements are typically rarely overturned, the man’s request is receiving increased attention due to the circumstances created by the Madoff case. When the couple’s assets were split equally, a large portion of money was invested with Madoff under the man’s name. The woman received her settlement in cash. In December 2008, when news of the Madoff scheme broke, the man filed to drastically change the terms of the divorce settlement, arguing that his ex-wife should have to give him millions of dollars she had received in the settlement to replace the losses he suffered due to the fraud.
Learning More About Illinois Civil Unions and Insurance Benefits
At the end of May, the Illinois Department of Insurance released new guidelines for insurance companies and consumers to follow in response to the “Illinois Religious Freedom Protection and Civil Union Act,” which became law on June 1. Under the Act, people who choose to enter into a civil union in Illinois will be given many of the same legal rights given to married couples. During the course of the next few months, our blog will explain in greater detail the effect the new law has upon health insurance, Medicare, life insurance, property insurance, pensions, and more.
All insurance policies in Illinois that were issued on or after June 1, 2011 by an insurance company registered with the State of Illinois are to conform to the new law. Civil union spouses are also entitled to the same benefits as married spouses under Illinois workers’ compensation insurance.
Massachusetts Looks to Cap Alimony Payments with Proposed Legislation
In Massachusetts, legislation has recently been proposed that would significantly change the way alimony payments are decided in the State, reports The Boston Business Journal. Additionally, if passed, it would also allow divorced parties to revisit their established alimony agreements, in certain circumstances.
Known as the Alimony Reform Act of 2011, the bill has been praised by many for giving long-anticipated guidelines regarding alimony awards in the State. Massachusetts does not currently permit judges to set a cap on its duration, which has resulted in many scenarios of working ex-spouses making lifetime alimony payments to a non-working ex-spouse who are supported by an unmarried, live-in partner. Now, the proposed legislation gives precise definitions of new, additional categories of alimony, and also describes how long payments should continue. For example, in “general term alimony,” a former spouse who is economically dependent on the other former spouse is given regular payments; in “rehabilitative alimony,” payment is made to a former spouse who is expected to eventually become financially independent.
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