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Neibaur v. Neibaur

142 Idaho 196, 125 P.2d 1072 (2005)

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Neibaur v. Neibaur

Idaho Supreme Court
142 Idaho 196, 125 P.2d 1072 (2005)

  • Written by Liz Nakamura, JD

Facts

Steve Neibaur (plaintiff) and Penny Neibaur (defendant) married in 1982. Approximately one year before the marriage, Steve had started Steve Neibaur Farms, Inc. (SNF), a farming operation. Steve was the sole shareholder and directed all operations. Penny had her own employment and did not work for SNF. During the marriage, SNF increased in value from roughly $146,000 to $1 million. Steve filed for divorce in 2001. At a trial before the magistrate, Penny argued that SNF was Steve’s alter ego and that the court should pierce the corporate veil to award her a share of SNF as community property. The magistrate held that SNF was Steve’s separate property but awarded the community $750,000 to reimburse the community for the labor Steve devoted to increasing SNF’s value. Steve appealed. The district court affirmed the magistrate’s order, but the appellate court reversed and vacated the magistrate’s award. Penny appealed to the Idaho Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Schroeder, C.J.)

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