My understanding is that a business is NOT SP if 1) like you said, the spouses form a business together during marriage, and 2) even if only 1 spouse forms a business, as long as it is during marriage, it is probably presumed CP (community property presumption). You use the reverse formulas when the business is CP and continues to operate after the parties are separated but before divorce because you need to back out the SP portion, the portion during separation, from the overall value of the business.WonkyPanda wrote:Dumb question time (are we allowed to ask dumb questions?):
I understand Pereira and Van Camp. However, when is a business NOT SP? Is it when the Spouses form the business together as partners? Then, you would use the reverse formulas? is that right?
Edit 1: I am saying this for CA community property. I have no idea if you are talking about another state.
