Characterization

Question 1

Business

Pereira

Answer 1

Personal skill and labor

• Spouse will reduce the value of initial investment + a reasonable rate of return on property brought into marriage.
• Pay interest into SP; the rest is CP

(Years married x (initial investment x % interest))= Amount of interest

Amount of interest + initial Investment = SP

100,000 “initial” + (8000 “Pay rate 8% x 100,000) x10 “years”) = 180,000

Question 2

Business

Van Camp

Answer 2

Used when increase in the business is primarily due to the nature of the capital.

• Tends to favor spouse property
• Capital investment was major factor and natural ground.

(Compensation comparable x Years Married) = Value of Community Labor

• # (Living Expenses x Years Married) = Family Expenses paid from CPCommunity Property Component

100,000 x 10 = 1,000,000
- 80,000 x 10 = 800,000
—–
200,000 CP (balance is SP)

Question 3

Pereira

Interst

Answer 3

Typical Interest is 5% if not stated.