You’ve both got to be in it to win it
Release date: 22/11/2011
The High Court has recently grappled with a fascinating divorce case. In S v AG, Mr Justice Mostyn had to decide on the fate of a lottery win. Would the Wife keep her £500,000 winnings or would the Husband share the spoils?
This case involved a couple who had married in Columbia in 1984. They moved to London with their two children in 1991 and lived modestly in council accommodation. In December 1999, the Wife and her friend entered into a written syndicate agreement for the National Lottery Big Draw. A cheque for £1 million was issued to the Wife’s friend and on 10 January 2000, £500,000 was paid into the account of the Wife. Crucially, the Wife kept her winnings a close secret from her Husband and continued to deny all knowledge right to the doors of the court.
In May 2000, the Wife purchased the former matrimonial home in her sole name for £275,000 out of her secret share of the lottery prize. On 1 January 2004, the Husband was removed from the property by the police during an episode of serious domestic violence. The parties separated thereafter.
The marriage was dissolved by the Columbian Court in September 2006. The Husband made an application for finance in June 2010 following an overseas divorce and the case came before Mr Justice Mostyn on 14 October 2011.
The Judge awarded the Husband a lump sum of £85,000.
Mr Justice Mostyn found that the initial lottery prize of £500,000 was “non-matrimonial property”. The Wife was unilaterally playing the lottery, without the Husband’s knowledge and she bought the lottery tickets from her own earned income. When the Wife purchased what was to become the new family home with her share of the lottery prize, Mr Justice Mostyn found that she converted that part of her non-matrimonial assets into matrimonial property- even though the Husband knew nothing about the provenance of the funds.
Because the money came exclusively from the Wife, and given the relatively short period of time the couple lived together after the matrimonial home was bought, equal sharing of that property would not be justified. The Judge ruled that giving the Husband a share of between 15% and 20% would be fair on the basis that the source of the matrimonial home was not a joint endeavour but rather non- matrimonial property of the Wife’s and the Husband had only resided in the property for a short period of time.
This case was specific to the facts. Would the decision have been different if the Husband had known his Wife was buying lottery tickets or if they had been funded from a joint account? The answer is undoubtedly yes.
What if the Wife had stolen the pound from the Husband’s pocket or what if the parties had children and the money came from their piggy bank? Depending on the facts, the result at court can be as hard to pick as a winning ticket for the lottery! The permutations are endless.
Most married couples expect that any lottery winnings would be shared but the recent ruling in S v AG would suggest you’ve both got to be in it to win it!
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