Pereira v. Pereira

Summary

The court allocated the increase in value of a husband's separate property business by giving the separate estate a fair return on its capital and treating the remaining growth as community property, because the growth came mainly from the husband's personal efforts during marriage.

What it means for the financial analysis

Pereira is the starting point for apportioning a separate property business. The forensic work centers on the fair rate of return on the beginning capital, which requires a reliable value at the date of marriage and a defensible rate.

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