Double dipping in divorce isn’t just unfair, it can profoundly alter the outcome of spousal support and financial settlements. If you’re a high-net-worth individual, business owner, or anyone going through a divorce in Illinois, understanding how income is evaluated and divided is crucial.
At Anderson Boback & Marshall, we regularly handle complex cases where asset division and maintenance awards intersect. This article explains how Illinois courts treat double dipping, why it matters, and what you can do to protect your financial rights.
What is Double Dipping in Spousal Support?
Double dipping refers to the scenario where a single stream of income is counted twice: first, when dividing marital assets, and then again to calculate ongoing support obligations.
Example: A business-owning spouse may have their company valued during the divorce based on projected earnings. If the court uses those same earnings to calculate spousal support after dividing the business’s value as a marital asset, that could be considered double dipping.
When double dipping typically occurs:
- Dividing a retirement account’s value and then counting future payments from that same account for spousal support.
- Valuing a business based on future earnings for property division, then using those same earnings to determine maintenance payments.
- Distributing investment portfolios during asset division, then counting future dividends or returns for support calculations.
When it’s not double dipping:
- Using current salary income for support after dividing assets unrelated to that income stream.
- Considering genuinely new income sources that developed after property division was finalized.
- Accounting for passive income from assets that weren’t part of the property division.
Is Double Dipping Legal in Illinois Divorces?
Illinois law does not explicitly prohibit double dipping. However, courts are required to distribute marital assets equitably and determine maintenance fairly, per the Illinois Marriage and Dissolution of Marriage Act (IMDMA). While not codified, courts may address the fairness of such scenarios on a case-by-case basis.
In In re Marriage of Eberhardt, 387 Ill. App. 3d 226 (2008), the court acknowledged that using the same income twice can be inequitable, though no blanket rule against double dipping was issued. Judges in Cook, DuPage, Lake, and Will Counties may exercise discretion based on perceived fairness.
How Illinois Courts Evaluate Complex Income in Spousal Support Cases
Illinois courts consider both actual income and financial circumstances, including:
- Business revenue and owner’s draw
- Deferred compensation (stock options, RSUs)
- Investment and dividend income
- Bonuses or irregular earnings
Courts strive to distinguish between income earned and the value of the asset already divided. This is particularly crucial in cases involving family-owned businesses or high-value investments.
Why Full Financial Disclosure Matters
Transparency is key. Financial affidavits, discovery requests, and subpoenas help uncover:
- Hidden income sources
- Misrepresented business income
- Deferred bonuses or undisclosed pensions
Lack of disclosure can lead to inequitable judgments and future motions to modify.
Can You Receive Both Alimony and Social Security or Other Benefits?
Receiving multiple income streams is not automatically double dipping. Courts assess whether benefits such as Social Security or pension income were already considered in the asset division.
For example, a spouse may receive Social Security benefits while also being awarded alimony. This isn’t necessarily double dipping if the Social Security benefits weren’t included in the property division (which they typically aren’t, as they’re considered separate property).
However, if a pension was divided through a Qualified Domestic Relations Order (QDRO) during property division, then counting that same pension again for spousal maintenance calculations could potentially be double dipping.
Visit our Chicago Property Division Lawyers services page to learn more
Legal Options If You Suspect Double Dipping in Your Divorce Case
If you believe double dipping has affected your divorce settlement or spousal maintenance order, several legal avenues exist to address these concerns in Illinois.
Filing a Motion to Modify Spousal Support
When financial overlap is discovered after a divorce is finalized, you may have grounds to request a spousal support modification. Illinois law permits modifications when a “substantial change in circumstances” occurs, which could include the revelation that income is being double-counted.
The motion must clearly demonstrate:
- The specific income stream being counted twice
- How and when it was accounted for in property division
- Why the current arrangement creates an unfair financial burden
Requesting a Financial Review or Discovery
If you suspect but cannot prove double dipping, formal discovery processes allow you to obtain detailed financial information. This might include:
- Subpoenas for financial records
- Depositions under oath
- Formal interrogatories (written questions requiring written answers)
- Requests for production of documents
These legal tools can uncover evidence of overlapping valuations that might support a modification request.
Working With a Forensic Accountant
Complex financial situations often require specialized expertise. Forensic accountants can analyze financial records to identify instances of double dipping that might not be obvious to non-professionals.
In high-asset divorces or cases involving business valuations, these professionals can provide expert testimony about how assets were valued during property division and how that relates to current income being used for spousal support calculations.
In one post-decree case in Cook County, a support order was modified after a forensic accountant demonstrated that the same stock dividends had been both split in the property division and used to determine support payments, creating an unjust financial burden.
Can Double Dipping Be a Reason to Modify Spousal Support?
Yes, newly discovered financial overlap may constitute grounds for spousal support modification in Illinois. Under state law, support modifications require proving a “substantial change in circumstances” since the original order.
Evidence that the same income source is being double-counted could qualify as such a change, particularly if:
- The double dipping wasn’t apparent or disclosed during the original proceedings
- The financial impact is significant enough to create genuine inequity
- The issue wasn’t explicitly addressed in the settlement agreement or divorce decree
Illinois courts have shown willingness to review maintenance orders when credible evidence demonstrates that income or assets are being unfairly counted twice. However, the burden of proof rests with the party requesting modification. This makes thorough financial documentation essential.
Final Thoughts: Protecting Your Financial Rights in Illinois Divorce
Navigating the complexities of double dipping in spousal support requires specialized legal knowledge, particularly in high-income situations or divorces involving business ownership. Without proper representation, you risk either paying too much or receiving too little in financial support.
Illinois divorce courts aim for equitable outcomes, but equitable doesn’t always mean obvious or simple, especially when complex assets and income streams are involved. Having an experienced family law attorney in Chicagoland area who understands the nuances of financial distribution and spousal support calculations is crucial to safeguarding your financial future.
If you believe your divorce judgment involved double dipping, contact Anderson Boback & Marshall today for a confidential consultation.
FAQs About Double Dipping in Illinois Spousal Support
What constitutes “double dipping” in spousal support?
Counting the same income stream in both property division and support calculation.
How do Illinois courts address double dipping in spousal support cases?
Illinois courts don’t ban double dipping outright but assess fairness case by case under the IMDMA. Judges may adjust support if double dipping is proven.
Can double dipping affect the modification of spousal support in Illinois?
Yes. If double dipping is discovered after divorce, it may qualify as a substantial change in circumstances, grounds to request a support modification.
Can my ex get both my pension and alimony?
Generally, no. If your pension was divided during property settlement, it shouldn’t be counted again for support, doing so could be legally challenged.
What should I do if I suspect double dipping in my divorce case?
Consult with a family law attorney and request a financial review. They may recommend a forensic accountant or legal motion to uncover and challenge double dipping.
This information is for general educational purposes only and is not legal advice. Consult an attorney for guidance on your specific situation.
