Lottery Winnings and Who Gets the Money in Family Court Proceedings – Windfall During Relationship

Generally speaking, a windfall such as a lottery win acquired during a relationship will form part of the property pool that the Family Court will adjust between parties.

The question that often arises is whether that lottery win is to be considered a contribution by the person that purchased the lottery ticket, or, a contribution by both parties.

The family Courts will generally view such a lottery win during a relationship as a joint contribution by the parties1 notwithstanding that the lottery ticket may have been purchased by only one of the parties and from their sole income.

The Full Court of the Family Court when explaining why it took that position, commented as follows:

“Where both parties are in receipt of an income and where the marriage is predicated on the basis of each contributing their income towards a joint partnership constituted by their marriage, the purchase of the ticket would be regarded as a purchase from joint funds in the same way as the purchase of any other property within that context and should be treated accordingly. Where one party is working and the other party is not, the same conclusion would ordinarily apply because that is the mode of partnership selected by the parties”.

The above comment recognises the importance of non-financial contributions as well as financial contributions made by parties during a relationship and demonstrates that a party does not need to be earning an income to be considered to have jointly contributed to the lottery win.

The question of whether a lottery win will be considered a joint contribution of the parties or a sole contribution, will largely be determined by the circumstances of the relationship existing at the time when the ticket was purchased.

For a discussion on how the Court treats lottery wins received after separation, please see “Lottery Winnings After Separation – Who Gets the Money in Family Court Proceedings”.

1 Zyk & Zyk [1995] FamCA 135

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