Divorce Lawyers of Chicago

On November 25, 2013, the Appellate Court of Illinois held that all health insurance premiums for dependents may be deducted from gross income, without limitation, for the purpose of calculating child support. In this case, the trial court would not allow the father to deduct from his gross income the health insurance premium covering himself and one child from a previous relationship. The court reasoned that, because the premium did not differentiate between one or two children, and therefore did not increase by adding the child in this case, the father should not receive the health insurance premium deduction in calculating his child support obligation. The Appellate Court disagreed.

Child support calculation is governed by the Illinois Marriage and Dissolution of Marriage Act, section 505. The amount of child support is determined based on a percentage of the payor’s net income. Section 505 allows for certain deductions from gross income to arrive at net income, including, among other things, “dependent and individual health/hospitalization insurance premiums.” The Appellate Court concluded that section 505 does not have limiting language, and therefore a supporting parent is entitled to deduct all health/hospitalization insurance premiums.

This decision will have a significant impact now that health insurance is mandatory.

In re Aaliyah L.H. 2013 IL App (2d) 120414. Note that this Appellate Court decision has not been released for publication in permanent law reports. Until then, the court may revise or withdraw the decision.