If you win the lottery for a substantial amount—like $100 million—it’s safe to say that your life is never going to be the same again. If you are divorced and have children, those winnings could also have a drastic impact on their lives.
This story played out at least once already, when a man won a total of $338 million. He was 44 years old. He didn’t get that whole amount, naturally, but ended up with around $152 million after he had paid the taxes. Though that’s less than half of what he won, it’s still an incredible amount.
The twist to the story is that the man was a deadbeat dad. He was on the hook for around $29,000 that he had not paid in child support, starting in 2009.
Before his winnings were given to him, the government had the right to take what he owed and hand it over to his family. He couldn’t stop it, as the money was deducted in advance. Additionally, since he hadn’t been paying for so long, interest was charged at a rate of 9 percent.
It is important to note that the amount he had to pay for those past due payments—which he owed from before he won the lottery—couldn’t be altered even though he was now a millionaire. However, it was possible for the court to look at his new value and adjust the payments that he’d have to hand over in the future, after squaring things up with the back payments.
Though good fortune like this is rare in Colorado, it’s important to know how it can change a child support situation.
Source: The Law Offices of Rodger C. Daley and Associates, “How good fortune could impact child support calculations,” accessed Nov. 26, 2015