CALIFORNIA FAMILY LAW
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Business Interests
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C/P Interest in S/P Business
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Determining C/P Interest
............Van Camp Method
11 Cards On This Topic:
C/P interest in services of owner in capital intensive business equal to reasonable compensation; balance is s/p.
Factors trial ct. looked to in determining that H’s income from s/p business was adequate.
Van Camp approach used where increase in value of s/p not due to efforts of owner.
Large increase in s/p business confirmed as s/p.
Trial court finding that H was adequately compensated for his services during marriage to his s/p tool corporation and thus no c/p interest affirmed; no need to separately evaluate corp. goodwill.
Where increased value of mature business due to natural growth and not efforts of owner, it is not profits of business but actual value of owner’s services that is c/p.
C/P interest in employment agency determined by value of W's services.
No fixed rules for determining income of owner of s/p business.
Increase in value of s/p assets apportioned solely to s/p despite substantial efforts to maintain.
Van Camp formula appropriate when increase due primarily to market pressures.
Test for reasonable value of services is what independent employers pay others to perform similar services.