CALIFORNIA FAMILY LAW
...Business Interests
......C/P Interest in S/P Business
.........Determining C/P Interest
............Selection of Method
6 Cards On This Topic:
  • Apportion s/p and c/p interests in s/p business using whichever formula will achieve substantial justice.
  • Once trial ct. determines that an asset needs to be apportioned, it is court's responsibility to determine the proper method of apportionment and may use any method that fairly apportions between the c/p and s/p interests.
  • Usually Pereira formula used if c/p effort is primary contributor to value increase; Van Camp if s/p investment is primary contributor; court may select formula which will achieve substantial justice.
  • Court must allocate profits of s/p business between s/p and c/p.
  • Court has duty to apportion earnings of s/p business operated during marriage; If increase primarily due to market pressures, Van Camp formula appropriate.
  • Court may select whatever formula to determine c/p interest in s/p business that will do substantial justice.