For states that do not recognize the communal property division method of marital asset distribution, the equitable distribution model is used. This essentially involves the court equally assigning assets or money to each spouse upon divorce. You can also think of it as a 50-50 split.
However, it is important to also understand that the court does not just assign a 50-50 split, it evaluates each spouse’s marital assets and non-monetary contributions, starting the tally from zero.
Upon identifying various factors from the divorcing couples’ marriage, the court then formulates a plan that serves as a guiding principle in how marital assets must be divided and how liabilities will have to be shared among the divorcees. It is also prudent to keep in mind that a 50-50 split is never a guarantee.
But when non-monetary contributions are factored into the equation (which are basically the positive actions of the non-working spouse that have helped the earning spouse) manage the household and take care of the overall family, there can be some disparities involved when it ultimately comes to equitable marital asset distribution.
Understanding Non-Monetary and Positive Monetary Contributions
Positive monetary contribution primarily refers to the total income you bring in to manage household expenses and take care of other needs. The most common example of such compensation is your employment. The income you earn and spend on ensuring your family’s lifestyle is known as a positive contribution.
On the other end of the spectrum, a positive non-monetary compensation basically refers to all the positive activities done by your spouse who doesn’t earn an income but contributes to the growth and sustainability of the family.
For example, a stay-at-home mom or dad, who while not having an income will contribute to the family’s success by cooking multiple meals throughout the day, taking the children for recreational activities, picking them up from school, taking them to the hospital, and much more.
Though things like this are most certainly a massive part of positive non-monetary contribution, other factors can be coupled into this category, such as attending parent-teacher meetings, scheduling activities for the children, arranging dinner parties, taking care of household pets, etc. All these also count towards positive non-monetary contributions.
A Brief Look into Adverse Non-Monetary and Monetary Contributions
Adverse monetary contribution essentially means doing things that incur unnecessary expenses. Some good examples could be spending money on your mistress wining and dining them, buying jewelry for them, etc. Wasting money on gambling is also another form of negative monetary contributions, which may also result in divorce.
Negative non-monetary contribution is the exact opposite of positive non-monetary contribution. For example, not taking care of the household, not paying attention to your children’s growth, doing drugs, drinking, domestic abuse, child neglect, etc., anything that could jeopardize the success and prosperity of your marriage.
A Glimpse into Identifying Your Non-Monetary Contributions
During a divorce, you could float the argument that your non-monetary positive contributions played an instrumental role in your spouse attaining success at their job or business. You can use this argument, especially when it comes to property division.
A spouse could say that they were the ones who looked after the kids, fed the household pets, cooked multiple meals, ensured their children were doing good at school, etc., while the other spouse could focus on their career without worrying about anything and is entitled to an equitable share in the marital home or any other property.
An argument could also be made by the spouse that they felt compelled to quit their academic dreams or career advancements just so their spouse could climb the ladder of success. They gave up their professional ambition just to ensure everything in their marriage ran smoothly.
Different Types of Non-Financial Marital Contributions That Can Impact Your Divorce
Becoming the Homemaker
When it comes to raising a healthy and happy family, nothing is more important than homemaking. This is a type of non-financial contribution that a spouse makes to ensure that their working spouse doesn’t have to worry about anything. This is where the homemaker cooks and cleans throughout the day, takes care of the children (if any), etc. Plenty of states recognize the invaluable contributions made by a stay-at-home mom or dad, factoring their contributions into the equitable distribution of marital assets.
Parental Obligations
It takes a lot of emotional endurance and strength to raise children and ensure that they grow into healthy and responsible people. Children demand a lot of energy from the at-home parent, as well as their time, which means the spouse will not have time to focus on their education or careers and probably would have to give up on their aspirations, which is a big sacrifice. This decision will be factored in by the family court when it’s time to split the marital assets.
Sacrificing Your Job and Professional Goals
In certain cases, it is possible that a once aspiring accountant, lawyer, businessman/woman, etc., may now have to give up on their hopes and dreams to take care of the children and ensure the household is smoothly managed. These compromises on career opportunities and possible earning potential can also be considered by the court when it comes to dividing assets or spousal/child support obligations.
Potential Problems in Putting a Value to Non-Monetary Contributions
Because there are no physical or tangible values that can be derived from a spouse’s non-monetary contributions, such as the value of a house or car, there are other things that the court will need to consider, such as how long the marriage lasted, the compromises made by the spouse who made the non-financial contributions, and evaluating the indirect economic value provided by that spouse to the entire family.
However, because there are no set formulas and ways to attach a justified value to these contributions, it is quite possible that the decision taken by the court could very well be subjective, leading to an inequitable distribution of marital assets.