Winnings and Division in Divorce
Posted on Oct 24, 2013 3:19pm PDT
What if you win the lottery while you are in the midst of a divorce from your spouse? Do you need to share the jackpot with him or her? Each state has their own laws on property division in the event of a divorce, but typically the answer to the above question is no. This is because in most cases, if a couple has already filed for divorce, then they are separated and all earnings during separation are typically kept separate. On the other hand, if you reside in a shared property state and win the lottery while you are still living with your spouse, you may be required to divide half of the earnings with him or her when you split.
This will all depend on the timing and the nature of the lottery winnings. This same concept also applies to other prizes that you may win. Whether you live in an equitable distribution state or a community property state, the courts seek to divide only marital property and not separate property. A state's definition of marital property can influence whether post-separation lottery winnings are to be shared or not. For example, in North Carolina, at the time of separation all shared financial assets cease, and each person is entitled to his or her own earnings. In other states, such as New Hampshire, the use of the date of entry of legal separation or divorce marks the end of the estate.
Even in states where the marital estate ends at separation, the court isn't always required to award part of a party's post-separation lottery winnings to the other side. Most states follow equitable distribution laws, and this will allow the court to award unequal division of the marital estate under some circumstances. If you can reasonably argue that it is not fair that your spouse receive half of your winnings from the lottery or some other contest, then the court may agree with you and allow you to keep those finances.
If you are the spouse who is seeking the lottery winnings, even though your ex was the one who won the money, then there are a few back-door ways to possibly receive a slice of the money. If your ex is receiving child support, and wins the lottery, then you may be able to use his receipt of the lottery winnings as a reason to lower support. Also, if you are receiving alimony or child support and your ex wins the lottery, you may use this as an argument to receive more money. If you have an alimony claim against your spouse, the lottery could while it out.
If you are concerned with having to share lottery or sweepstakes money or prizes with an ex, then the best move is to keep your mouth shut about the winnings until you state requires you to disclose the amount that you won. This means no posting on social media or broadcasting the fact that you recently hit the jackpot. In some cases, such as in uncontested divorce, you may never even need to tell your ex-spouse about your success.
Instead, you may be able to keep mum about the winnings and then spend the money how you want to in the future. Don't hesitate to contact a lawyer right away to work on your case and get you the information that you need regarding property division. You will want an attorney to help you determine whether or not to take legal action regarding the winnings and to help you learn more about the laws in your state.