non-financial contributions are contributions made which have resulted in the increase of size in the net asset pool.
what counts as a non-financial contribution
During property settlement, the court will take account of both the non-financial contributions along with financial contributions responsible for the increase of the price of a property. This article deals with the non-financial contributions on a property.
What are Non-Financial Contributions
Non-financial contributions generally include the activities done to increase the price of a property which does not include direct funding. Such contributions are simply done on one’s own accord and this finally results in the increase of the price of the property. One is not paid for such contributions so these are termed as Non-Financial Contributions.
Suppose, James and Maria are a couple living together. James spends most of his time at work and Maria stays at home and looks after her children. She also does gardening around the home and have significantly made the landscape much better than it looked before. In case of a split-up the price of the property would surely involve a part of the landscape. And this contribution which is non-financial would add to the account of Maria.
Most of the indirect contributions that result in the increase of the net-asset of the property can be termed as a non-financial contribution. In most of the relationship, the person who works outside has little time to spend on his/her home and thereby contribute to the family. While the other person staying at home can help to contribute to the family.
If his/her contribution is such that may result in the net increase of the property price, then it would certainly count as a Non-Financial Contribution. Many married couples, husbands often work outside and it limits the chances of the wife to go outside while someone else to take care of their children. So, she spends her time at home and does household chores. She can also landscape her garden that would certainly help to beautify the house. This factor would be responsible in the net-price of the property. Also, the male counterpart is responsible for renovating the house sometimes. He can help to make a new room or increase the room size of his own effort.
Also, he might renovate the front of his house. This sort of contribution is done mostly to make the property beautiful and attractive. One is not paid for such contributions. But when there might be split-up of the family, then the court will take account of the financial contributions as well as the non-financial contributions. Then in such case there would be accounted for those non-financial contributions which results in the net increase of the price of a property. And thus the contributions for which the responsible person had worked hard would get his/her prize.
As of now, you would have understood the non-financial contributions on a property. Non-financial contributions are done by a person on his own accord and he/she often does not keep account of the money it took. Many of those contributions are done to beautify the property and may not cost nothing at all. But this would obviously help in the increase of the net-asset of a property and thus such non-financial contributions are to be given importance.
The court would take account as to how much the net-asset had gone up for such contributions. They would see as how much it has contributed in the net-asset pool of the property. Also, there is another way to count such contributions. They could hire someone or a group to know how much would it cost to make such contributions. Thus, by such ways one could easily know the value of the Non-Financial Contributions of a property.
Necessity of the law
One cannot simply understand the utmost importance of the law. This law has much benefits actually. In many families, the male or female counterpart has to sacrifice their work to take care of their children. And in most of the cases, it’s the work of the wife. So, she mostly stays at home and tries to renovate their property by doing various kinds of works. She can contribute a lot, which would help to make the property have a higher value. And to reward her work, this law has a high necessity.
The importance of this law is high in many families which could undergo split-ups. This law would certainly help to benefit the person who would help to contribute to the increase of the price of the property. This contributions certainly helps both the parties and influence future developments. Thus, it is hoped that you have understood the law of Non-Financial Contributions to a property
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.