Posted on : June 20, 2016, By: Christopher Hildebrand
Community Property Lottery Winnings in Arizona
In Arizona, all money acquired by either spouse during the course of the marriage – other than gifts and inherited property — is presumed to be community property in which each spouse has an interest. This community property rule continues in effect during a marriage even after separation, until a dissolution decree is entered. In the case of Lynch v. Lynch, 164 Ariz. 127, 791 P.2d 653 (1990), the Arizona Court of Appeals discussed possible exceptions to this general rule.
Facts of the Case: Dividing Lottery Winnings
Michael and Bonita Lynch married in 1968 and separated in 1985. When Michael began living with another woman, one Donna Williams, Bonita filed for dissolution. Michael did not answer the petition, and a default hearing took place on February 10, 1987. The trial court determined that the notice of the hearing to Michael had been improper, and it ordered a new hearing.
Two days later, and before the new hearing, Michael and Donna Williams won the Arizona State Lottery, splitting the $2.2 million jackpot. Bonita filed an amended petition in the still-pending dissolution asking for half of Michael’s share. Michael answered, arguing that Bonita should not get a share. However, the trial court awarded Bonita half of Michael’s lottery share. Michael appealed.
Jennifer, thank you for being my attorney. I could not have been more pleased with the outcome of my family court hearing. Everything you have done for me throughout this case reflects in the final ruling of the judge. You helped me keep my head together and taught me a lot about myself as a person. I learned so much about my life from observing and listening to you. I will take all the advice you gave me to continue taking responsibility for my choices, continue to put the kids' needs first, and always stay truthful. Your diligence, dedication, and persistence in my case made what seemed impossible, possible. You are a wonderful person and an amazing attorney and I am stronger and more confident because of you.
I just want to again thank the Firm for working with me all that it has. I could not have done anything without everyone's assistance. You, Chris and Stacey have been and continue to provide me with compassion and hard work towards my case. Also a very special thanks to Kip for taking my case in the beginning. Also continued support from him and his dedication to providing me with his expertise in this matter.
After interviewing several law firms, I came across Jennifer Shick, and her firm, who I hired to represent me for my Family Court case. Jennifer has extensive knowledge of the law and is determined to bring the truth to every issue involved within the case. Throughout my case, Jennifer was prepared meticulously as well as went above and beyond all of my expectations. Even when the other party tried to differ from the truth, lie to the Judge, and turn situations around, Jennifer remained attentive and provided substantial evidence to show the judge the facts as well as the proof to support what was the best interests of my children. Additionally, Jennifer helped me endure many difficult experiences, situations and inspired me to remain positive throughout the entirety of my case. Her kindness, compassion, and professionalism helped me through very difficult times and made the process feel a thousand times lighter on my shoulders. She truly has my children and my best interest at heart and I trust her perspective as well as her honesty on each and every aspect of my case. She lessened the burden on my shoulders and even when I felt like the case was not going to go in my favor, Jennifer was open-minded and reassured me that the Judge would, in fact, see the truth, which he did and the case went in my favor. After nine months of court, everything finally came together. I cannot declare how much Jennifer has been an outstanding attorney. She addressed each and every issue with diligence, she cares about her clients and their families. Jennifer genuinely cares about her clients and her dedication to the details of the case was remarkable. Overall, I am extremely pleased with Jennifer’s services and I am truly thankful that I was so blessed to have her represent my children and me. I highly recommend Jennifer as one of the best attorneys in Arizona and if the situation ever arises, I will definitely have her represent my children and me again.
Dear Stacey and Kip, How can I ever thank you enough for helping me through the most difficult time in my life? I couldn't put into words my heartfelt gratefulness. You both were so compassionate and professional at every given moment throughout this process with me. I thank you from the bottom of my heart. You helped me to regain my freedom.
I was a client of Attorney Kevin Park for the dissolution of a divorce in 2016. And since I had never had the need to hire an attorney before for any purpose, I was somewhat apprehensive of the process. But the very calm and professional demeanor of Mr. Park eased my fears. He adeptly answered all my questions and I clearly knew the process and what to expect. And the skilled manner he communicated with opposing counsel was perfect. When it came down to negotiating with my spouse’s counsel, I knew I had selected the best attorney for my situation. What I noticed and appreciated was that he was using just the right amount of pressure with opposing counsel as was necessary. If you find yourself in this situation, you will want a seasoned professional like Mr. Park on your side. I'm very grateful that he was my attorney and not the opposition!
Chris is a smart and aggressive attorney for his clients. Chris always tries to reach a fair settlement of his cases. I’ve represented clients when Chris was the opposing counsel and while he is professional and amicable to work with, he does not back off on what he needs to do for his client
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I feel that Tracey Van Wickler is certainly one of the best family lawyers around. She is logical, intelligent, and truly cares. Tracey always does what is in the clients best interest, does it well, timely and with integrity. She is good at keeping her clients informed as to what is going on and clear in her communication both written and verbally. I have recommended Tracey to other people and will continue to recommend her. I recommended Tracey to someone who was having issues with their ex-wife and his response was, “I know how good she is because I went up against her and she ate me for lunch”. This same person was so impressed with her, he even recommended her to someone else, WOW, that is impressive! I am exceptionally happy with her attention to detail, her ability to explain things in ways that are easy to understand, as well as her ability to keep everyone focused on the most important things. I would recommend Tracey to anyone who may be in need of her services.
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I cannot express enough how thankful I am that I found Hildrebrand Law. Chris Hildebrand is an excellent attorney who has my best interests in mind and always encourages me to do the right thing regardless of what the opposing party is doing. Chris knows family law very well and relies on that knowledge to format options and solutions for each situation that may arise. He knows what the Court expects and what will and will not be tolerated. He has attempted to settle this case quickly and as inexpensively as possible from the start. His paralegal, Laura, is remarkable. She is organized, quick to respond, and compassionate. Chris is well prepared with a binder full of detailed and organized information and that is likely due to her thorough skills and expertise. While getting a divorce that was unexpected is a painful and difficult process, Chris and Laura treat my family and I like friends rather than another just "client." I am hopeful that I do not need to recommend divorce lawyers to anyone in the future but if I do, Hildebrand Law will be a recommendation I would give hands down.
Michael tried to persuade the Court of Appeals that the marriage ended on the date of the first default hearing. First, he claimed that a marital community lasts only as long as the parties’ “will to union” and that he and Bonita’s will to union ended by the time Bonita testified at the default hearing that the marriage was irretrievably broken.
In Arizona all property earned by either spouse during the life of a marriage, up until the final dissolution order is entered, is community property. Neither the couple’s separation nor the filing for dissolution severs the marriage or stops the accrual of community property until the decree of dissolution is entered. The phrase “will to union” comes from an Arizona case decision called In re Marriage of Fong, 121 Ariz. 298, 589 P.2d 1330 (App. 1978).
Community Property Lottery Winnings.
The Fong case presented a unique set of facts, involving a wife the husband thought, in good faith, to be dead, a wife whose falsehoods supported the husband’s misunderstanding, and a second marriage resulting in seven children. The Court of Appeals – seeking a justification for not awarding the deceptive wife half of the property accumulated over decades by the husband and his new wife — noted a Spanish community property law that any property acquired after the “union of wills” ceases may not be considered community property.
However, the Lynch Court of Appeals discussed Fong in depth and found that the reference was relevant to justifying an unequal but equitable division of community property, not to the time a couple stopped accumulating community property. It also noted that the equitable factors involved in Fong were not present in the Lynch case and that the normal rules of community property division – that it should be divided equally between the spouses – should apply.
No Showing of Waiver of Lottery Winnings
Michael next argues that Bonita waived any interest in his earnings when she told the court on February 10 that the marriage was irretrievably broken. The Court of Appeals rejected this, noting that waiver is the “intentional relinquishment of a known right. Bonita only intended to waive any interest in Michael’s property after dissolution, not anything that he might acquire if the marriage lasted beyond its anticipated end.
No Showing of Estoppel for Lottery Winnings
Michael’s final argument is that Bonita cannot be allowed to claim any interest in his lottery winnings since he would have been divorced on February 10 if Bonita had given him appropriate notice. The Court also rejected this position. It noted that, though Bonita’s attorney did give Michael defective notice, nothing suggests that it was for tactical advantage. Nor did anything indicate that Michael bought the lottery ticket in reliance on his marriage ending on February 10. Rather, Michael had been playing the lottery every week for 20 years. Reliance is an essential part of the doctrine of estoppel and is wholly lacking in this case. The Court of Appeals affirmed the trial court’s award of half of Michael’s lottery winnings to Bonita.
