Illinois Divorce Lawyer Russell D. Knight Clarifies The Role Of "True Up" Clauses In Illinois Divorce Agreements

Chicago, Illinois - Russell D. Knight of the Law Office of Russell D. Knight (https://rdklegal.com/what-is-a-true-up-in-an-illinois-divorce) provides a clear explanation of how a "true up" clause functions within Illinois divorce agreements, addressing recurring income fluctuations and their impact on child support and maintenance. The guidance centers on the legal framework of Illinois support statutes while highlighting how parties may contractually adopt yearly reconciliation provisions. As an Illinois Divorce lawyer, Knight outlines practical drafting considerations for Marital Settlement Agreements that incorporate true up language to reduce repetitive court filings.

Illinois Divorce lawyer Russell D. Knight emphasizes that "true up" is a term of art, not a statutory mandate. The Illinois Marriage and Dissolution of Marriage Act does not reference the phrase, and reported case law provides no direct, binding authority establishing a standalone true up requirement. Instead, parties frequently adopt a true up by agreement to address anticipated annual changes in income. Child support is governed by 750 ILCS 5/505, which applies guideline percentages to combined net income, and maintenance calculations follow 750 ILCS 5/504(b-1)(A)(1). Because those obligations are set at the time of judgment, annual variances in earnings can create a mismatch between orders and economic reality. Illinois Divorce lawyer commentary notes that a negotiated true up can recalibrate support each year without repeated modification motions, which under 750 ILCS 5/510(a) affect only future installments after notice.

In practice, a true up clause typically requires both parties to exchange tax documentation such as W-2s, 1099s, K-1s, and filed returns on a fixed timetable. The parties or a designated accountant then compute "net income" using statutory definitions. The statute defines gross income as income from all sources and allows a standardized tax amount to derive net income for support purposes. Where self-employment or closely held businesses are involved, ordinary and necessary business expenses may be deducted, but accelerated depreciation and inappropriate or excessive expenses are excluded by 750 ILCS 5/505(a)(3.1). Illinois Divorce lawyer guidance recommends stating in the clause whether statutory definitions control the annual calculation, thereby limiting disputes over deductions, timing of filings, or treatment of employer-provided benefits.

Illinois Divorce lawyer Russell D. Knight further notes that appellate decisions illustrate the downstream effects of these provisions. Some opinions recognize that a negotiated true up shows the parties contemplated income growth, which can weigh against later claims of substantial change when seeking to modify support. Other rulings indicate that not every increase was necessarily within the parties' contemplation, leaving room for case-by-case analysis. The drafting lesson is straightforward: define the income inputs, specify deadlines for document exchange and tax filing, outline the computation method for net income, and state consequences for noncompliance. Clear terms may reduce conflict, protect children's interests through accurate support, and decrease litigation exposure.

About Law Office of Russell D. Knight:

The Law Office of Russell D. Knight is a Chicago-based family law firm focused on divorce, child support, maintenance, parenting time, and related domestic relations matters across Cook County and surrounding jurisdictions. The firm delivers practical, statute-grounded counsel for negotiation, settlement, and trial. Services cover initial case strategy, financial disclosure, support calculations, and post-judgment issues. For consultations or additional information, contact the firm or visit the website to schedule a case review.

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Email: russell@rdklegal.com

Website: https://rdklegal.com/

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