What is a Van Camp Apportionment for a Business in a San Diego Divorce

What is a Van Camp Apportionment for a Business in a San Diego Divorce

Pierre Domercq Professional Practice & Business Ownership

What is a Van Camp apportionment for a business in a San Diego divorce?  The essential question on the table involves the presumption of the ownership of a business or professional practice by one of the parties in a divorce.  The central questions surrounding a business in a divorce are:

  1. What portion (if any) of the business is considered to be community property?
  2. If all or part of the business asset are considered to be community property what is the valuation of the community’s interest in the business?

The Van Camp apportionment for a business in a San Diego divorce is one of the methods available to the Court to help to establish the value of the community’s interest in a business or professional practice during a San Diego divorce.  In order to complete community property division the valuation of the community’s interest in the business from the date of the marriage until the date of separation must be established.  When the increase in the value of a company is primarily due to outside market forces or the nature of the company itself the Court may apply the Van Camp Apportionment to help to establish the valuation.

The essential idea behind this process of valuation is to determine the amount of the “community labor” which was contributed to the business each year, and then the value of that work in the form of what would be a “fair salary” for the work performed.  Once the Court determines what a fair salary would be this amount is usually multiplied by the number of years of the marriage.  The next step would be to deduct any benefits or amounts paid to support community expenses from the total amount of the fair salary calculation.  In order to keep the company as a separate asset the owner of the business interest usually must compensate the “community” for half of the community’s interest in the company.

The Van Camp apportionment for a business in a San Diego divorce is just one of the methods used to establish the valuation of a business asset.  Are you concerned about the impact of a divorce on a business or professional practice?  We invite you to review the strong recommendations of former clients and the legal industry, protect your own interests and contact us or call 760-434-3330 to schedule an appointment for a safe, confidential and private consultation with one of our experienced and proven Certified Family Law Specialists.