Lottery Wins - Could it be you?

The National Lottery created a record breaking 229 millionaires in 2011 and recently one lucky couple planning their wedding won £45m but a recent judgement by the High Court appears to affect the way lottery wins are considered on divorce.

In October 2011 the High Court determined that lottery winnings of £500,000 received by the wife after she played the lottery with a syndicate and paid for her ticket with her own income were "non-matrimonial property” and not subject to the sharing principle as marital assets usually are.

The wife in this case, however, went on to purchase the marital home with her winnings, converting those monies into “marital property”. The husband received just £85,000 as settlement, to meet what the Court deemed his reasonable needs. The wife retained the balance of the monies.

The decision in this case highlights the increasing trend towards identifying what is marital property and what can be considered non-matrimonial property. The Court may also consider inherited assets or wealth acquired before any marriage as non-matrimonial.  The Court’s approach, in ring fencing any non-matrimonial property after needs have been met, is similar to the approach adopted by Courts in Europe but caution must be advised for parties in the UK. The case law concerning the treatment of non-matrimonial property on divorce is complex and to be the subject of a review by the Law Commission with a report due in early 2013.  If you are in any doubt as regards your position then seek legal advice.