Winning the Lottery and Then Getting Divorced

lottery articleThe odds of any person winning the lottery are very slim. However, if someone does win the lottery, and he/she is married at that time, under Massachusetts law, the lottery winnings are a marital asset. Under Massachusetts law, all property owned by one spouse individually, or both spouses jointly, is considered marital property. That means, if after winning the lottery, the spouses then divorce, the lottery winnings are part of the marital estate to be divided in the divorce; there is no presumption that the spouse who won the lottery gets to keep all of winnings.

If the spouse who won the lottery wants to protect these winnings from being divided in a divorce, then the spouses can negotiate and enter into a Postnuptial Agreement. A Postnuptial Agreement is like a Prenuptial Agreement, but it is drafted and signed after spouses marry. In such an agreement, the parties can to agree to include or exclude certain assets in the marital estate in the event of a divorce or separation. In Massachusetts, Postnuptial Agreements are considered legally binding and valid as long as the agreement is fair and reasonable, and there has been a full disclosure of each spouse’s assets and income.

Another situation that a spouse can face after winning the lottery, is winning the lottery after he/she is divorced. In this case, if a spouse is paying child support and/or alimony, then the other spouse can file a Complaint for Modification to increase or decrease support (as the case may be, depending on who won the lottery), on the grounds that the lottery winnings substantially increase the spouse’s income. The legal standard to change a support order is a material and substantial change of circumstances. Typically, if there is a financial change in a spouse’s income, then that qualifies as a change in circumstances warranting a modification of support. In these cases, because the spouses are already divorced, a Postnuptial Agreement is not possible, and the issue of modified support will have to be addressed through the court.

In either circumstance, whether a spouse wins the lottery while still married, or after he/she divorces, the spouse should seriously consider consulting with a knowledgeable Family Law attorney to see how he/she can protect these winnings in the event of a divorce or support modification.

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