Husband incorporated JDS Homes, a construction business. In 2006, JDS Homes purchased a parcel of land in Burr Ridge known as the Crosscreek Subdivision. The land was divided into 10 separate lots. With the exception of Lot 7, all of the lots were developed and sold. In 2012, respondent incorporated JDS Home Builders. Lot 7 is the primary asset of JDS Homes and JDS Home Builders.
Thereafter, husband filed a Petition for Dissolution of Marriage.
In relation to Lot 7, an asset, he stated that hundreds of thousands of dollars were loaned to JDS by two trusts established by husband’s parents. He stated that these loans were used by JDS to make interest and required principal payments on the Hinsdale Bank loan, real estate tax payments on the Crosscreek Subdivision property, and fees and miscellaneous expenses related to the Hinsdale Bank loan.
Husband sought a declaration that the funds transferred from his parents’ trusts created valid and enforceable liens for $300,000 each against Lot 7. He argued that the loans were as marital liabilities subject to equitable allocation between the parties as part of the overall division of the marital estate. He argued that he had to pay the loans back to his parents.
The Trial Court did not see that he had any obligation to pay these loans back to his parents. He presented no evidence to show any obligation to repay his parents’ trusts.
Evidence showed that husband exercised his authority as trustee under the trust of each of his parents to withdraw funds. And that the funds went into an account in his name. Although the mortgages are potentially valid, they do not show any obligation for Respondent to repay a valid loan.
In re Marriage of Slesser, 2019 IL App (2d) 180505 (September 10, 2019) DuPage Co.