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Divorce, Bankruptcy, and End of the Initial Horse Activity
In 1986, Mr. Rinehart and Donna Jean Rinehart divorced. As
a result of the divorce, Donna Jean Rinehart received 27 of the
horses they owned. These 27 horses included the best broodmares.
Also during the mid-1980s, Mr. Rinehart filed for
bankruptcy. In 1986, Bedford National Bank seized and sold by
judicial foreclosure 21 of Mr. Rinehart’s horses, and MBank
Sherman, N.A., foreclosed upon and later sold 18 of Mr.
Rinehart’s horses. In 1986, after the divorce and foreclosures,
Mr. Rinehart ended the initial horse activity.
Startup of New Horse Breeding Activity
In 1990, Mr. Rinehart decided to start another cutting horse
activity (the horse breeding activity). Mr. Rinehart leased an
arena in Royce City, Texas, to train the few horses he still
owned after the divorce and foreclosures. In 1991, he purchased
a ranch in Campbell, Texas (Campbell ranch), for $350,000. Mr.
Rinehart moved to the Campbell ranch because it was a “full
service facility” for a horse breeding and training operation--it
had an indoor arena, stallion barn, breeding facilities, and a
training area. Additionally, the Campbell ranch had cross
pastures, cross fences, and “special use facilities”. Another
reason Mr. Rinehart moved to the Campbell ranch was that it was a
high visibility property--the Campbell ranch was located
alongside a divided highway that was the main artery between
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Last modified: May 25, 2011