What Is A True Up In An Illinois Divorce? - Russell D. Knight

From Law Office of Russell D. Knight — What Is A True Up In An Illinois Divorce explores how divorced couples can use “true up” clauses to address fluctuating incomes after divorce, as an alternative to repeatedly going back to court. In this episode, we break down how such clauses work (or don’t) under Illinois law, and weigh the risks and rewards of adopting them in a marital settlement.

In the first segment, we define what a true up clause means in an Illinois divorce and why it isn’t actually grounded in statute or case law — it’s more of a contractual workaround. We discuss how child support, maintenance (formerly alimony), and net income are calculated under Illinois’s statutory regime, and contrast that with what parties can negotiate via a true up clause. References include 750 ILCS 5/505 and 5/504.

Next, we’ll walk through how a true up clause is typically structured: exchanging tax documents, W‑2s, 1099s, K‑1s, assessing net income, and resolving disputes. We’ll explore how business owners, deductions, depreciation, bonuses, and variable compensation further complicate implementation. We also talk about when and how parties might later seek to modify or abandon a true up clause in favor of fixed amounts or traditional court modifications.

Finally, we’ll offer real‑world considerations: when a true up clause might make sense — or backfire — for divorcing spouses. We discuss the obligation to share financial information, disclosure risks, litigation triggers, and the emotional burden of being financially intertwined post‑divorce. Whether you’re drafting a settlement agreement or just curious about how Illinois divorce law handles post‑judgment support, this episode gives you a clear, practical guide to true ups.

Law Office of Russell D. Knight

1165 N Clark St #700, Chicago, IL 60610, United States

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