Final answer:
The Van Camp and Pereira methods are applied in family law for distributing community property contributions to a separate property business during a divorce, with Van Camp used when growth is due to external factors, and Pereira when growth is due to a spouse's efforts.
Step-by-step explanation:
The Van Camp and Pereira methods are used in family law to make determinations about the division of community property contributions to separate businesses during a divorce. They are applicable when one spouse has used community efforts or funds to contribute to the growth or enhancement of a separate property business.
The Van Camp method is typically employed when the business's success is primarily due to market forces or external factors, rather than the direct efforts of the managing spouse. It looks at the business as if it were community property and determines a reasonable salary for the spouse's efforts; any community profits beyond that are considered separate.
The Pereira method is used when the increase in business value is mainly due to the spouse's labor, talent, or skills. It calculates an appreciation based on the initial value of the business and a fair rate of return; the remaining increase is attributed to community property.
Ultimately, the choice between Van Camp and Pereira methods should be made based on which approach more accurately reflects the reasons for the business's growth during the marriage. They aid in ensuring a fair allocation of assets upon the dissolution of marriage.