Does Investment Income Count in Illinois Spousal Maintenance Calculations?

 Posted on June 05, 2026 in Asset Division

If your household income includes dividends, rental payments, or capital gains, a divorce in 2026 will raise questions about how that investment income affects how much spousal maintenance you pay or receive. The way these incomes factor in can shift the final maintenance number by a significant amount. For anyone going through a complex divorce, a St. Charles, IL spousal maintenance lawyer can help understand how courts treat passive income before negotiations start.

What Is Considered "Income" for Spousal Maintenance in Illinois?

Illinois law defines income broadly for maintenance purposes. Under the Illinois Marriage and Dissolution of Marriage Act, 750 ILCS 5/504, courts must consider each spouse's income and property. Passive investment income counts.

This includes:

• Dividends from stocks and mutual funds
• Rental income from investment properties
• Interest income from bonds or savings instruments
• Capital gains distributions from investment accounts

These types of investment portfolios are common in divorcing households. According to the Pew Research Center, 58 percent of U.S. families had some form of stock market exposure in 2022, the highest level ever recorded by the Federal Reserve's Survey of Consumer Finances. For higher-income couples, that income stream is often large enough that a court cannot simply ignore it when setting maintenance.

How Illinois Courts Apply the Maintenance Formula When Investment Income Is Involved

Illinois uses a guideline formula when the couple’s combined gross annual income is under $500,000, and the paying spouse has no prior child support or maintenance obligation, unless the court finds the guideline should not apply.

The basic calculation takes one-third of the paying spouse's net income and subtracts one-fourth of the receiving spouse's net income. The result cannot push the receiving spouse's total income above 40 percent of the couple's combined net income.

Investment income changes both sides of that equation. Say the paying spouse earns $150,000 in salary and also receives $30,000 in dividends per year. Their total net income for maintenance purposes is higher than their salary alone. The maintenance obligation rises with it.

The same logic applies to the receiving spouse. Someone who asks for maintenance and holds a brokerage account generating $20,000 a year has that income counted toward their net income. That reduces what the court is likely to award.

How Do Dividends, Capital Gains, and Rental Income Affect Spousal Maintenance in Illinois?

Not all passive income is treated the same way in a maintenance calculation. Consistent, recurring income like quarterly dividends from a long-held portfolio is treated much like wages, so courts can rely on a predictable number.

Capital gains are harder. A one-time gain from selling stock does not automatically become ongoing income. What courts look at is whether a spouse regularly liquidates investments as a source of cash. When capital gains appear on tax returns year after year, a court is more likely to treat them as part of the income stream.

Rental income falls somewhere in between. Net rental income counts, meaning income after mortgage payments, taxes, and upkeep. Courts will expect documentation of those deductions rather than accepting gross rental figures.

How Does Undisclosed Investment Income Affect a Spousal Maintenance Award in Illinois?

Passive income is harder to verify than a salary. Unlike wages, it does not show up on a pay stub. The full picture often requires a review of tax returns, brokerage statements, and property records. Illinois courts address this during discovery, where both spouses must produce that documentation. If reported income does not match the size of the portfolio, a court can impute income.

This means the court assigns an income figure based on assets held, not what was reported. Imputed income can affect both the payment amount and how long maintenance lasts. In some cases, attorneys bring in a forensic accountant to go through investment records when tax returns alone are not enough. In high-asset divorces, tracing investment income can be just as important as the maintenance formula itself.

Talk to a Kane County, IL Spousal Maintenance Lawyer Today

Maintenance disputes involving investment income require attorneys who know how to read financial records and build an argument around them. At Weiler & Associates, P.C., our St. Charles, IL spousal maintenance lawyers have handled complex financial divorces for years. Attorney Tim Weiler is a Certified Financial Litigator, meaning he has specific training to litigate and settle cases where financial complexity is the central challenge. Call 630-331-9110 to speak with our team.