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Allocation of Increase in Value of a Separate Property Business Overview

If the community is to be compensated relative to an increase in value of a separate property business, is it a right to reimbursement or a right of ownership?

The community may be reimbursed for a portion of the increase in value of one party’s separate property business using the Pereira approach, the Van Camp approach or another equitable approach. Any benefit to the community will be a reimbursement, not a right of ownership.

Equitable Apportionment (Reimbursement) Of A Portion Of The Increase In Value Of A Separate Property Business During The Marriage

Graph showing the Increase in Value Of A Separate Property Business During The Marriage

Does the community have a right to reimbursement from a separate property business if the business increases in value during marriage? Maybe.

Illustration of the right to reimbursement from a separate property business if the business increases in value during marriage