How do you do co-ownerships?

[colemanjen]

Hi

I am new to this forum, but signed up as I have a question I'd like to hear your input on. Just wondering how you all do co ownerships. I own a broodmare that another party is seriously interested in. I am not willing to sell her outright but this friend is also very intersted in part ownership of her. I am a little leary as it sounds like it could make for some sticky situations and it is a long term committment to each other. Just wondering about any of your experiences or how you do it? 50/50 or something like 60/40? How do you manage expenses? How do you manage foals? Every other one? 50/50 on each foal? What do you do when one wants to sell the mare and or a certain foal and how do you decide on a value?

 

[mdegner]

Howdy neighbor (at least thats who I think you are....LOL). This is an interesting topic and I know there are people out there who do this successfully.

I have more questions than anything. I am wondering why this individual wants to do this? Is this a way for them to get their feet wet in the shetland/mini world? Is it a matter of cost and not being able to spend enough to get what they want? Is this a friend or colleague? I think understanding their motivation is key to you deciding whether or not to proceed. Maybe it's someone who would make a great owner of this mare's future baby?? What makes you even consider this? Is there a benefit to you, or are you doing this because you are a really nice person. . . Just my thoughts, not much help probably...

Regardless, put it in writing, put it in writing, put it in writing......which I am sure you will do.

 

[Wings]

If it's a friend I would say no, too often these deals can sour and IMHO it's not worth the loss of a friend.

That said my mother and I own two horses in contracted co-ownership, a mare we bought and a colt I bred. Both are a 50/50 split and I'm contracted as the managing owner, this means I essentially control things but I am obliged to keep her in the loop on all things from worming schedules to shows and breeding.

The mare's foals will also be in 50/50 ownership unless one of us signs over our half or buys it out from the other. There is also a clause that if I choose to use an outside stallion and front the fee myself then I get full ownership of the resulting foal but the breedign needs to be okayed first.

The colt is a lot more straightforward even though he has a full show career ahead of him!

You have to have a solid contract though, even though the other owner is my mother the contract covers everything and is legal. You also have to contract in the way out if the partnership sours.