Understanding Van Camp and Pereira: Apportionment of Separate versus Community Property
Editor, Naghmeh Bashar, requested an article on Van Camp and Pereira apportionment, having sat through one of my prior seminars given to Specialist Candidates before the exam.
The following is a very easy to understand explanation of the Van Camp and Pereira apportionment cases, and an overview of other important apportionment issues from a practical viewpoint.
When a Separate Property business appreciates during the Marriage from the efforts of either party, one must apportion the appreciation between the Separate Property and the Community Property efforts. Typically this means utilizing the "Van Camp" formula or the "Pereira" formula, each named for two very old but relevant cases.