Pereira accounting is one of the two manners in California community property law that explains how to deal with community funds and/or labor used to enhance the value of separate property.
[1] To calculate, courts will add the original principal amount of the business which is separate property to a reasonable rate of return expected from the nature of that business.
This method is preferred when the management of the spouse was the primary cause of the growth or productivity of the business.
In the case where the character of the business is the main reason for its growth and production, Van Camp accounting should be used.
Van Camp accounting is typically chosen when the Business itself or economic factors produced the profits (typically larger and generally more capital intensive businesses).