My question involves divorce in the State of: California
I think I know the answer to this, but wanted to ask for a second opinion.
Husband started a software development business during the marriage using funds from an inheritance that had never been comingled with community property funds. Business is an LLC and the ownership is in the name of the husband only. No prenuptual agreement.
So as I understand it, at its onset, the business was separate property since the funds to start it came from the H's separate property. The business has grown. All money to fund the business' growth came from the separate property of the husband (that was never comingled with community property) or from revenue generated by the business.
But the labor of the husband to grow the business is community property and since the business is developing and selling computer software, which as I understand it would be subject to Pereira accounting (i.e., the labor of the husband was the primary cause of the success of the business). So to figure out how much of the business is community property, Pereira accounting would be used.
Any one agree or disagree?