Part of Illinois divorce law allows for child support trusts. “The court if necessary to protect and promote the best interests of the children may set aside a portion of the jointly or separately held estates of the parties in a separate fund or trust for the support, maintenance, education, physical and mental health, and general welfare of any minor, dependent, or incompetent child of the parties.”
The appellate court opinion in Marriage of Pasquesi addresses establishing and replenishing a child support trust, and the consequences of failing to pay child support or other expenses for children.
The Pasquesi divorce judgment and settlement agreement required the ex-husband, John, to deposit $90,000 in a 24-month trust. The ex-wife, Roberta, could withdraw John’s monthly child support obligation and his half of child-related expenses from the trust if he did not otherwise pay. After 24 months, Roberta asked the court to require John to replenish the trust, and grant other relief. The trial court ordered John to replenish the trust at a rate of $12,000 annually, and the appellate court affirmed. After the trust was established and eventually funded, John willfully refused to pay child support and his share of non-medical expenses during the time of the original 24-month trust. John also was unemployed for part of those 24 months, during which he withdrew nearly $200,000 from his retirement accounts, even though he lived with his parents.
The Law Office of Christopher Haaff has used child support trusts in divorces and post-judgment proceedings. Pasquesi demonstrates one situation when a child support trust is desirable, or even necessary.