Wednesday, March 5, 2014

Effect of Powerball/Lotto Win on Child Support Obligations?

A recent Powerball winner may be about to find out that winning isn’t everything, after all.

According to news sources, Pedro Quezada, a resident of New Jersey, owes a judgment for unpaid child support in an approximate amount of $39,000.00.  Before the $338 million in lottery funds are released to him, it seems that the State of New Jersey will deduct the amounts owed for his child support obligations.  See

And, in another twist of fate, Mr. Quezada’s winnings may trigger a financial review that could result in an increase to his current monthly child support obligations.  It wouldn’t be the first time – in 1995, a Chicago resident found his child support obligation increased and had the funds withheld from his lottery winnings. See

In 1999, Amador Granados’ former spouse successfully sued for an increase in child support after he won the $11 million SuperLotto in California; she subsequently obtained a court order to seize his annual lottery payments when Mr. Granados defaulted on his child support obligations.  See

Lesson learned – income from gambling (including state-supported lotteries) is still income and will be included in the calculation of one’s resources when determining the amount of child support.  In Texas, it’s the law: See Texas Administrative Code Rule § 401.319 -$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=9&ch=401&rl=319. 

By:      Cynthia W. Veidt