SP&H was hired to value two companies owned by the husband prior to and during the entire marriage. After valuing the businesses at the beginning and end of the marriage, SP&H determined the separate property and community property portions of each company.

As the marriage lasted over 15 years, SP&H's valuations required the analysis of a substantial amount of financial, industry, competitive, and economic information.

This case required what is called a Pereira Analysis. The California Supreme Court determined in 1909* that a reasonable return on one party's separate property remains separate property. Any increase in value above and beyond the reasonable return is considered community property.

The following graph illustrates SP&H's "Pereira Analysis" for one of the two businesses in this case:

* Pereira v. Pereira, 156 Cal. 1 [103 P. 488]