HUSBAND LOSES CLAIM TO SHARE IN WIFE’S LOTTO
What happens if you win the lotto after you have separated from your spouse or partner? Is the money yours or do you have to share?
A recent case in the Full Court of the Family Court throws some light on the issue.
Ordinarily, the Court will determine married or de facto couple’s property settlement entitlements based on the assets, liabilities and financial resources that exist at the time of the trial.
This is often referred to as the ‘matrimonial asset pool’ which usually includes assets, liabilities and financial resources acquired or accumulated during the marriage.
There are however, occasions when the Court will consider whether assets accumulated or acquired after separation should be either:
- (a) excluded from the matrimonial asset pool completely; or
- (b) considered in an asset pool separate to the matrimonial asset pool (often referred to as the ‘two pool approach’).
In adopting this ‘two pool approach’ the Court will consider the contributions made by each of the parties to the acquisition, conservation or improvement of the property included in the separate asset pools.
In a recent case heard by the Full Court of the Family Court, the wife received $6 million in lottery winnings.
The winnings were received by the wife after separation. The husband contended that the wife purchased the winning lotto ticket using joint funds and on that basis, the husband had contributed to the winnings.
He believed that the winnings should be included in the one matrimonial asset pool.
The wife contended that her sister gave her money each week to assist her financially and the ticket was bought from these funds. She had been buying lottery tickets in her own right for many years dating back before the marriage.
In reaching their decision in favour of the wife, the Full Court did not consider the source of funds to be particularly relevant.
What was relevant, in the Court’s view, was the nature of the parties’ relationship at the time the lottery ticket was purchased.
The Court stated that “At the time the wife purchased the ticket, regardless of the source of the funds, the “joint endeavour” that had been the parties’ marriage had dissolved.
There was no longer a “common use” of property. Rather the parties were applying funds for their respective individual purposes.”
As a result the wife got to keep the lottery win and the matrimonial pool of assets did not change.
The approach taken by the Full Court in this case was consistent with that taken in earlier cases heard by the Court in relation to lottery winnings.
If you have separated it is a good idea to see your solicitor to determine the likely make up of the asset pool and commence steps to try to bring about a resolution of the property matters.
Paula Phelan is an Accredited Specialist in Family Law at local firm Rees R & Sydney Jones.
