A $1.25 million lottery win in 2002 was equally attributable to a married couple, instead of solely from one spouse, the Court of Appeal ruled on Thursday (2 May). (Yahoo News Singapore file photo of a 4D ticket)

SINGAPORE — Lottery winnings constitute a “matrimonial asset” and form part of the pool of monies to be divided between a divorcing couple, the Court of Appeal ruled on Thursday (2 May).

The apex court was delivering its verdict for an appeal by a 55-year-old wife against ancillary orders in divorce proceedings with her 63-year-old husband, who had described himself as an inveterate gambler. The couple separated in 2004.

A High Court judge had earlier apportioned 42 per cent of the $9.3 million in matrimonial assets to go to the wife and 58 per cent to the husband. These assets included the $1.25 million lottery winnings.

Matrimonial assets in divorce proceedings are divided equitably, but not equally.

Wife contested distribution of assets

The wife contested the distribution of the lottery winnings, claiming that she was responsible for 95 per cent of indirect contributions to the marriage. She argued for the matrimonial assets to be divided such that she got 80 per cent.

Contrary to the High Court judge’s finding that the husband had won the lottery in 2002, the wife claimed that it was she who had won the Singapore Pools 4-D bet.

Accordingly, she argued that a greater proportion of direct contributions should have been attributed to her.

The lottery winnings had been deposited in the couple’s joint bank account and the money was used to repay the mortgage loan for their matrimonial home.

Separately, the husband had also won $201,028 in 2011, $48,210 in 2012 and $1.032 million in 2013 via lottery. These sums, which were deposited in his personal bank account, were not part of the matrimonial assets.

Intention behind purchase of lottery ticket matters: Apex Court

Judge of Appeal Andrew Phang, who delivered the Court of Appeal’s ruling on Thursday, said, “we are of the view that whilst who purchased the winning ticket is one of the factors that ought to be taken into account.... the more important point where lottery winnings are concerned is the intention with which the ticket was purchased.”

It would be extremely difficult for a spouse who bought a winning lottery ticket to argue that he or she was the sole contributor of the winnings to the pool of matrimonial assets, said the court, which also comprised Justices Belinda Ang and Woo Bih Li.

The apex court found that the husband did not buy the winning ticket in 2002 with the intention of keeping the winnings for himself, having deposited the cash into the couple’s joint account and using the money to pay down the mortgage. This was a strong indication that he had bought the ticket with the intention of benefitting the family, instead of merely himself alone.

Added the court, “In so far as the attribution of lottery winnings with regard to contributions to the pool of matrimonial assets is concerned, there is a presumption that both spouses contribute equally to that pool unless the spouse who purchased the winning lottery ticket can show that he or she purchased the ticket with a view to only benefitting himself or herself and not with a view that the family as a whole should benefit from such winnings should they materialise.”

The Court of Appeal reversed the High Court judge’s decision only in relation to the 2002 lottery win, ruling that it was to be attributed to each spouse equally.

Accordingly, with the overall direct contributions of the wife rising, and taking into account her indirect contributions, the apex court ruled that her overall ratio of her contributions was 49.1 per cent instead of 42 per cent.

The court also ordered $20,000 in costs in favour of the wife.

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