The term refers to non-monetary contributions made by one spouse toward the acquisition, improvement, or maintenance of property during a marriage. This often involves physical labor, personal skills, or time dedicated to a business or asset. For example, if one spouse personally renovates a house that was purchased during the marriage, thereby increasing its value, this effort could be considered a form of such contribution.
Recognizing these contributions is crucial for fair property division in divorce proceedings. It acknowledges that marital assets aren’t always acquired solely through financial investment; significant personal effort can also enhance or create value. Historically, its assessment may have been overlooked, but modern divorce law is increasingly sensitive to the economic impact of non-financial contributions to marital wealth. The legal acknowledgement of this labor promotes equitable outcomes when dividing marital property.
