Pereira

ThePereiraformulaisusedwherethemajorfactorcontributingtotheincreaseinvalueisthespouses
personaleffort.UnderPereira,thevalueoftheSPportionoftheassetisequaltothevalueoftheSPasset
atthetimeofmarriageorthetimeofacquisitionduringmarriage,plusareasonablerateofreturn,usually
10%perannum.Theresidualvaluebelongstothecommunity.
VanCamp
TheVanCampformulaistypicallyusedwheretheSPbusinessisvaluableandincreasesinvaluedueto
theexistenceofthebusinessandmarketforces,andnotthepersonaleffortorindustryofthespouse.Under
VanCamp,thecommunityreceivesareasonablesalaryinreturnforthespousescontributionoftimeand
effort,reducedbytheamountofcommunityexpensespaidbythereturnsfromthebusiness.Theresidualis
theowningspousesSP.
UnderVancamp,thecommunitywouldbecreditedwithareasonablesalaryforthe6yearsthatH
spentmanagingtherestaurant,lessanycommunityexpensespaidbythereturnsfromthe
restaurant.ThebalancewillbeWsSP.

ImprovementofSeparateRealPropertywithCP
Here,thebankloan(CP)wasusedtoimproveanSPasset(Hslot).
WhereCPisusedtoimproveaSPasset,thecommunityisentitledtoaninterest.Theformulausedfor
calculatingsuchaninterestisfromInreMarriageofMoore.Thecommunityisentitledtoreimbursement
forthevalueofthecontributionsfordownpayment,improvements,andpaymentofprincipal,plusapro
ratashareoftheappreciation.
LiabilityofCPandSPforTortJudgment
CPisliableforalldebtsincurredbyeitherspousebeforeorduringmarriage.Whereajudgmentresults
fromatortcommittedbyonespouse,theorderofsatisfactionofthejudgmentdependsonwhetherthe
tortfeasorspousewasactingforthebenefitofthecommunityatthetimetheactgivingrisetothejudgment
wascommitted.Ifthetortfeasorspousewasactingforthebenefitofthecommunity,thejudgmentmaybe
satisfiedfirstbyCPandthenbythetortfeasorspousesSP.ThenontortfeasorspousesSPisnotliable.If
thetortfeasorspousewasnotactingforthebenefitofthecommunity,thejudgmentmaybesatisfiedfirst
fromthetortfeasorspousesSPandthenfromCP.ThenontortfeasorspousesSPisnotliable.