Pereira approach

The Pereira approach is a method of valuing the separate property from the community property in mixed ownership divorce claims. Basically, the Pereira approach involves figuring out how much of the increase in the value of the business was due to normal capital appreciation of the initial separate property investment, subtracting that amount out, and classifying that amount as community property. The "Van Camp" approach attempts to figure out the reasonable value of the spouse's service to the business, subtracting that amount out, and classifying the rest as separate property.