Thursday, September 27, 2012

Summary 2012 WY 127

Summary of Decision September 27, 2012

Justice Voigt delivered the opinion for the Court. Affirmed.

Case Name: DONNA RAY TEEPLES v. NEAL J. TEEPLES

Docket Number: S-12-0007


Appeal from the District Court of Sweetwater County, Honorable Nena R. James, Judge.

Representing Appellant: Richard Mathey of Mathey Law Office, Green River, Wyoming.

Representing Appellee: Weston W. Reeves and Anna M. Reeves Olson of Park Street Law Office, Casper, Wyoming.

Date of Decision: September 27, 2012

Facts:  Donna Ray Teeples, the appellant, was to receive a cash payment from her
ex-husband, Neal J. Teeples, the appellee, as a result of the division of their marital assets pursuant to a divorce.  The appellant claimed that the payment, made with the funds of an S corporation owned jointly prior to the divorce, impermissibly increased her tax liability and was made with funds that were rightfully owed to her as a prior shareholder in the company. 

Issues:  Did the payment received by the appellant satisfy the terms of the Property Settlement Agreement pursuant to the parties’ divorce?

Holdings:  The appellant received a payment from the appellee pursuant to their Property Settlement Agreement following their divorce.  The appellee paid the appellant with funds from an S corporation he received in the divorce.  The appellant contended that because she had previously been a shareholder in this S corporation, the payment constituted a dividend and impermissibly increased her income tax liability.  The Court disagreed.  The appellant was taxed properly on income earned by the S corporation due to her previous stake in the company.  The distribution did not increase her tax liability.  Affirmed.

Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court

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