When a couple separates, a property settlement agreement decides how their net assets will be formally divided between them. If a winning lottery ticket was bought by one party during a relationship, it would be seen as joint property and dealt with in a property settlement. But what happens with a big lottery win after separation?
It may come as a surprise to learn that a lottery win post- separation could still form part of the settlement ‘pool’. Where the parties have conducted separate financial lives, the winnings will likely be considered a sole contribution of the purchaser. However, in other circumstances, the Court may decide to reward the future needs of the other party in support of a fair and equitable outcome.
Farmer & Bramley (2000)
In the case of Farmer & Bramley (2000), the husband won $5m on the lottery 18 months after the couple separated. There were no other significant assets, so no financial agreement had been finalised. The Court ordered that the wife be granted 15% of the winnings, taking into account her past support for her husband during a 12-year marriage and providing for their child’s ongoing care.
Relatively few people will be lucky enough to win a large sum on the lottery. However, the case law serves as a reminder that it can be advisable to formalise a family law property settlement as soon as possible.
Contact our Property Settlement Lawyers in Sydney, NSW
If you need advice on the division of your asset pool after separation, please contact the family law experts at Szabo & Associates Solicitors on T: 02 9158 6507 or complete the online contact form.
