How to Split Lottery Winnings with Family or Co-Workers

Sharing the jackpot: a comprehensive guide to fairly dividing lottery winnings among family or co-workers.

Getting in on the lottery can be great fun, especially if you find yourself the lucky winner of a substantial amount of money. While you’ve been daydreaming about what you would do with that money, have you considered how to split lottery winnings with family or co-workers?

You do want to share, right? Okay, okay, so the answer is maybe, but maybe not. Some critical considerations exist when splitting lottery winnings with family, friends or co-workers.

But, first things first.

Can you split lottery winnings with family?

Yes! You can share money with your family after a big lottery win. But there are some essential points to consider:

• Decide whether you want to share: This is a personal decision only you can make, and there’s nothing wrong with keeping your winnings. But if you want to spread the wealth, that’s good too.
• Get advice: Get the advice of a professional, such as an estate lawyer or a financial planner, before you start handing out the cash. They can help you understand tax implications, legal issues and other factors related to your gifts.
• Know your taxes: Those same professionals (along with a certified public accountant) can help you understand what taxes you will pay so you can set aside enough money for tax time and don’t have to deal with a surprise tax bill.
• Decide how to share: Will everyone get an equal share? Will those with more financial need get a bigger chunk of the pie? Or will you use some other factor to decide who gets how much? However you break it down, clearly communicate your reasoning.
• Write it down: When you make your decision about who gets what, put it in writing. (Yes, you may need to get a lawyer involved.) This will help avoid potential problems later.
• Think about trusts or annuities: If you don’t want family members to squander the money immediately, consider placing it in a trust or annuity for each member. This will release the cash at a predictable rate and ensure the money lasts.
• Be a great communicator: Be open and honest with the people you gift money to about how much and why. Be able to explain your reasoning to avoid misunderstandings and resentments in the future.

How much is my lottery payout?

Did your work lottery pool just win the grand prize? Woo-hooo! Did you set up rules beforehand regarding who claims the money and how it’s distributed? No? Well, let's find out how to split lottery winnings with co-workers.

You want to prevent a dispute in case your group wins. So, have a designated leader responsible for collecting the money (electronic funds are better than cash because there’s a record!) and copying and distributing images of the tickets. (You can also play as a group in a Jackpocket Pool, and this is all done on the app for you!).

This leader should also be the holder of the contract you should have drawn up in advance, indicating what happens when you win. The contract will also spell out which games they will order tickets for and who will be the representative at the lottery commission to claim the prize. You will also need to decide as a group whether to take the lump sum or annuity option if you win. Everyone involved in the contract should sign it.

All this information is for naught if you don’t order your tickets. Jackpocket makes ordering your tickets a breeze, even if you’re joining the fun in a lottery pool with co-workers or friends. Just create an account, and set up your Pool to get started. Whether it’s a Public or Private Pool, you’ll be off to the races! Everyone who is invited to the pool has the option to contribute, and you order your tickets when you’re ready!