Man Wins Lottery 24 Hours After Divorce
TL;DR of Winning Lottery During Separation
- Lottery Winnings After Divorce: Eileen wouldn’t be entitled to Mike’s lottery winnings, as the divorce was final before he won.
- Alimony Modification in Nevada: Alimony can be modified if there’s a significant change in income, but Mike’s lump sum may not count as monthly income.
- Eileen’s Potential Claim for Alimony Change: Eileen could argue that Mike’s improved financial position eliminates the need for alimony.
- Impact of Separation vs. Divorce on Lottery Winnings: Winnings could be community property if acquired before separation; otherwise, they may be separate property.
What would happen if your ex-husband won the lottery shortly after you got a divorce? What would happen if you weren’t entirely divorced but you were just separated? We review a recent story to examine the legal facts of the situation.
Mike Weirsky’s Wife Story
Eileen and Mike Weirsky were married for 15 years. Six months ago, Eileen and Mike were divorced. One month ago, Mike won $273 million playing the lottery. This really just happened in New Jersey. See Huffington Post Story; Ex-Husband wins Lottery.
The question we were asked was whether Eileen would be entitled to half of the jackpot.
All the property was divided evenly in the divorce, and Eileen was ordered to pay Mike $500 a month in alimony. During the marriage, Eileen was the primary income earner. Can she ask for half of the winnings? Can she ask for a modification of the alimony? This case was in New Jersey, but we were asked what would happen if this case were in Nevada.
What Happens if a Man Wins the Lottery After a Divorce in Nevada?
Nevada is a community property state. Community property refers to any assets acquired during a marriage and is typically divided evenly by the court. Mike purchased the lottery ticket after the divorce was final, so Eileen would not be entitled to the winnings. Unfortunately, the court cannot force Mike to share his good fortune with an ex-spouse. But Mike’s winnings would raise the issue of whether Eileen could modify the alimony she pays.
Most often, when we get a question about alimony modification, the paying spouse has suffered a decrease in income. Either due to a pay cut or a change in occupation. This is the opposite, where the receiving spouse has received an increase in income.
Under Nevada Law (NRS 125.150(8)), alimony payments can be modified upon a “showing of changed circumstances”. “Changed Circumstances” can have multiple meanings, depending on the situation. One spouse might feel that an increase in overtime is a changed circumstance, while another may feel that an increase in rent or a new car payment is a changed circumstance.
Good thing the law provides a helpful guide. In NRS 125.150(12), “a change of 20 percent or more in the gross monthly income of a spouse who is ordered to pay alimony shall be deemed to constitute changed circumstances.”
Now in Mike’s case of winning the lottery, he will likely take a lump sum, instead a monthly payout. A monthly payout would almost certainly be “gross monthly income” as defined in Nevada’s laws. The definition of gross monthly income is your net profits minus any contributions to taxes. Does this mean Mike wins the lottery, and because it’s not monthly income, Eileen will still need to continue paying alimony?
Probably not. Because the court can consider other factors when modifying an alimony award. NRS 125.150(9) provides guidance stating that courts “shall consider…the financial condition of each spouse…The nature and value of the respective property of each spouse… The income-earning capacity of each spouse…” This allows the court to look at the “need” of the receiving spouse.
With the assistance of a divorce attorney, Eileen could make an argument that Mike’s lottery winnings dramatically improve his economic position, and he no longer has the need for alimony.
Although this would be a win for Eileen, it probably wouldn’t feel like it. She no longer needs to pay alimony, but she missed becoming a millionaire by five months.
What Happens if You Win the Lottery While Separated in Nevada?
Now, let’s say it was a different circumstance, and Eileen and Mike had not been officially divorced. But instead, they were only separated. If a husband and wife are legally separated in Nevada and one spouse were to win the lottery, just as stated above, the way the winnings are treated depends on the timing of the separation and the division of marital property. In Nevada, a community property state, assets acquired during the marriage are generally considered community property, meaning both spouses have a legal claim to them. However, if you are already separated and the lottery ticket was purchased after the separation agreement was in effect, it may be considered separate property. If the ticket was purchased before separation or if no separation agreement addresses new assets, you could potentially have a claim to a portion of the winnings. These cases can be particularly complex, especially when involving large sums. That is why contacting us at the RIGHT Divorce Law Office, we can help you understand your rights and protect your interests.
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