Here, Husband contended that according
to the Civil Code, the profits from
separate property would be also separate property. Wife insist that the result from Husband’s efforts, skills and labors were
community property because she raised their 4 children and had been housekeeping
during his work. Thanks to her work, Husband earned money. Thus, community
should receive a fair return of the profits. The Court held that Husband’s efforts, skills and labors over minimum about his separate
property were community property. The Court decided to apply the Pereira
approach to distribute the profits because the efforts of Husband were very
important. If the Pereira approach were applied, there would be no profit from Husband’s
efforts. Wife asserted that the interest 7% which the Court decided was not
proper and asked to apply Van Camp approach. If the Court apply Van Camp
approach, Wife would receive the half of about $360,000. However, the Court
found that Husband paid all of living expense during their marriage, which
shows that the expenditure by Husband would be over the profits about $360,000.

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