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A spouse's labor while living separate and apart is separate property. Because separation neither converts community capital to separate property, nor changes the rules that profits from capital have the same characterization as the capital, a reverse Van Camp-Pereira formula is used in divorce situations involving a community owned business. The reverse Pereira formula: The community would receive a fair interest rate on its capital and the balance would be separate property. The reverse Van Camp formula: The reverse Van Camp formula gives the separate estate a fair salary and allows the community to retain any remaining balance of the gain. As far as reverse apportionment formulas and their application, the court looks to the chief contributing factor and applies the formula that favors that particular estate. Under reverse apportionment, if separate labor is the chief contributing factor Pereira should be used if the gain is large and Van Camp should be used if the gain is small. Under reverse apportionment, if capital was the chief contributing factor, Van Camp should be used if the gain is large, and Pereira should be used if the gain is small.

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