Most of us have pondered what it would be like to win the lottery. But studies show that winning the lottery isn’t always what we envision. For some, lottery winnings can be the way out of a bad marriage. Further complicating this is how those winnings would have to be divided in a divorce situation.
Whether we like it or not, money factors into all corners of our lives, including our marriage. So, it’s no surprise that one of the primary causes of divorce today is the lack of financial resources.
What happens when a married couple wins the lottery, and a lack of money is no longer an issue?
That depends.
Recent studies show that winning the lottery affects men and women in different ways regarding marriage. A Swedish study looked at how “large, positive wealth shocks” impacted marriage by studying a group of Swedish lottery winners over a 10-year period after their win.
The study suggests that a lottery win increases a man’s desire to get and stay married. Furthermore, single male lottery winners were 30% more likely to marry within five years of their win and more likely to go on to have kids.
For women, windfall wealth (at least in the short-term) doubled their desire to divorce within two years after the win. The study noted that while a lottery win didn’t necessarily cause a divorce, it accelerated the decision for women who were already unhappy in their marriage.
You won the lottery. Great luck! But your spouse (or you) now want a divorce.
One of the issues you’ll face is how those lottery winnings factor into your divorce.
Divorce laws require divorcing spouses to divide their marital property fairly. This includes homes, bank accounts, investment accounts, debt, and income. Property considered “separate property” is the individual spouse’s to keep. But what is marital property, what is separate property, and where do lottery winnings factor into this?
Separate property is anything you own outside your marriage. This includes the following:
Even in these scenarios, however, separate property can become commingled with marital property and lose its separate designation. If it does, it will also need to be divided in your divorce settlement agreement.
Marital property, or any property, financial assets, or debt you or your spouse acquired during your marriage, must be divided if you divorce. Depending on when your lottery win occurred, it may or may not be considered marital property.
Suggested: Equitable Distribution States vs. Community Property States
If you and your spouse won any money during your marriage, these winnings are considered marital property. This is true regardless of which person purchased the winning ticket. You’ll need to divide the money with your spouse according to the divorce laws in the state where you file.
In either case, your lottery winnings are subject to division with your soon-to-be ex.
If you or your spouse won the lottery during your divorce proceedings, how it will be divided depends on the date you won and the state laws where you filed for divorce.
Some states consider your separation date as the official cutoff for marital property division. Others consider the date you filed for divorce or your final judgment as your cutoff date.
For example, in New York, the cutoff date for marital property division is when you file for your divorce. In California, it is the official date that you and your spouse became separated.
Depending on the state, the court can have considerable leeway in deciding how lottery winnings will be divided, depending on the circumstances of the divorce case. For instance, if you are filing for divorce based on fault-based grounds, the court may consider the behavior of the at-fault spouse when deciding who gets the lion’s share of a lottery win.
After your divorce is final, any lottery winnings are officially considered your separate property. They are not subject to property division. However, it’s important to know that lottery winnings may be considered when the court makes decisions about alimony or child support.
Chances are, if you won the lottery while you were married, it will be considered marital property and there is no way of “protecting” it from your spouse. Your spouse will have the right to their fair share of those winnings.
During the divorce process, you’re required to declare all your income, assets, and debts to each other. That includes lottery winnings. Not doing so could result in some serious consequences.
But what happens if you win the lottery after your divorce? Do you have to tell your ex?
If you win the lottery after your divorce, your winnings are your separate property. Your ex has no right to a share of that. However, if your financial situation changes significantly, your lottery winnings could be fair game regarding spousal support or child support.
If you were to win the lottery after your divorce, your spouse could ask the court to consider your new financial circumstances and adjust your alimony or child support payments. Conversely, if your ex won the lottery and you had been paying spousal or child support, you could seek a modification from the court to get your payments adjusted.
Divorce can be financially complicated. At Hello Divorce, we aim to make it as inexpensive and uncomplicated as possible. We offer everything from online divorce plans to flat-rate professional advice so you can make important decisions regarding your divorce and your future. To learn more, schedule a free phone call with one of our friendly account coordinators.
Do lottery winnings count as marital property?
Often yes, if the ticket was purchased during the marriage. In many states, winnings are considered marital assets and must be disclosed and divided in divorce.
What if I bought the ticket before marriage?
Winnings from a ticket bought before marriage may be considered separate property, but any portion used for shared expenses or invested jointly can become partly marital.
Can hiding lottery winnings affect my divorce?
Yes. Failing to disclose winnings can lead to penalties, attorney fees, a reopened case, or a judge awarding your ex a large share—sometimes even the entire amount.
How are lottery winnings divided in a divorce?
It depends on state law. Community property states typically split marital winnings 50/50, while equitable distribution states divide them fairly based on several factors.
Can a spouse claim winnings after the divorce is final?
If the winnings were concealed and discovered later, courts can reopen the case. If fully disclosed and addressed in the settlement, the claim is usually closed.
Should I hire a lawyer if lottery winnings are involved?
Yes. Winnings can dramatically affect property division, taxes, support, and long-term planning. Legal and financial guidance helps protect your rights.
Determine when the ticket was purchased
Identify whether the ticket was bought before or during the marriage. This affects whether the winnings are separate or marital property.
Gather and organize documentation
Collect proof of purchase, prize amounts, tax paperwork, and any deposits or transfers related to the winnings.
Disclose the winnings fully
Include the winnings in your financial disclosures. Omitting them can lead to severe legal and financial penalties.
Understand how your state divides assets
Learn whether you live in a community property or equitable distribution state to understand how winnings may be divided.
Consult legal and financial experts
Get advice on taxes, long-term planning, and the best approach for negotiating division or buyouts.
Consider settlement options
Decide whether to split the winnings, negotiate a buyout, or offset with other assets as part of your settlement.
Update your financial plan
After division, adjust your budgets, savings goals, insurance, and estate planning to reflect your new financial reality.
The Effects of Wealth on Marriage and Fertility. National Bureau of Economic Research.