When it comes to dividing assets after a relationship ends, unexpected windfalls—like lottery winnings—can raise complex legal questions. One landmark Australian case, Farmer & Bramley (2000), explored whether a post-separation lottery win should be included in a property settlement.
This case highlights how the Family Court considers each party’s contributions during the relationship, the timing of the windfall, and ongoing responsibilities like child care. The outcome set an important precedent for how such “surprise” assets are treated when partners go their separate ways.
Before 1995, if a property’s value increased during a marriage due to external factors—such as rezoning or winning the lottery—rather than through the actions of either spouse, these were categorized as “windfalls.” These windfalls were typically treated differently from assets acquired through a spouse’s personal effort or on their behalf.
However, since 1995, windfalls like lottery winnings are generally considered to be the contribution of the person who acquired them—usually the individual who bought the ticket.
Still, the timing and circumstances of receiving a windfall can play a significant role in the outcome of a property settlement.
A notable example is the Farmer & Bramley case. The couple had cohabited for 12 years and shared one child. At the time of their separation, they had no meaningful assets.
In the early years of the relationship, the husband struggled with drug addiction. The wife supported him emotionally and financially, helped him with literacy, and sustained him while he pursued education. Her support enabled him to eventually secure full-time employment.
Following their separation, the child remained in the wife’s primary care, while the husband’s involvement became sporadic.
About a year and a half after they parted ways—and before any property division occurred—the husband won around $5 million in the lottery. Soon after, the wife applied for a property settlement.
In response, the husband tried to avoid financial responsibility: he restructured his assets to avoid paying child support, gambled away more than $100,000, and falsely claimed that the lottery winnings belonged to his mother.
The Court determined that the lottery prize, even though it was won after the separation, was subject to division. The ruling took into account the wife’s significant financial and emotional contributions during the relationship, the stark difference in their financial positions post-separation, and the wife’s continued responsibility for the child without any support from the husband. As a result, the wife was awarded about $750,000.
The Farmer & Bramley case underscores that windfalls, even those received after separation, can be subject to division if one party has made significant contributions during the relationship or continues to bear financial responsibilities, such as caring for a child.
Courts take a holistic view, considering not just who acquired the windfall, but the broader context of the relationship and its aftermath. For individuals navigating separation and property settlement, this case serves as a powerful reminder that timing alone does not determine entitlement—contributions and fairness play a central role.
