IVA windfalls: inheritance, bonuses and unexpected money
Money that arrives during an IVA is not automatically yours to keep. The terms you signed decide — and they were written for exactly this moment.
What counts as a windfall
One-off, unexpected value: inheritances, lottery and gambling wins, compensation payments, redundancy beyond what your terms treat as income, assets you acquire. The defining features are that it was not in the original budget and it is capital rather than earnings. Your own arrangement’s wording governs — read it, because modifications at approval often tightened it.
Overtime, bonuses and pay rises
Earnings are the annual review’s territory rather than the windfall clause’s: sustained increases feed the review, and your terms typically require a share of significant extra income above set thresholds during the year. The honest operating rule for all of it is the same: disclose first, argue categories second.
Why disclosure wins
Concealing a windfall is a breach that can fail the arrangement after years of payments — and a supervisor who finds out later can pursue what was hidden. Disclosed early, a windfall can even work for you: a sum large enough may settle the arrangement early and finish the whole thing.