Legal experts look into the crucial steps that must be taken when a horse has more than one owner involved
MAKE a plan at the outset for the “worst-case scenario” with hope you never have to use it – that was the key message from a recent legal webinar on navigating co-ownership.
Hannah Bradley of The Equine Law Firm and Jodie Seddon of Aria Grace Equine Law took attendees through some of the major pitfalls to avoid – and how using head over heart at the outset can result in a smoother journey.
Headlines included why a 50:50 split is the worst scenario, and exit provisions must be considered at the start.
“We all come into [ownership] in the right way,” said Ms Seddon, who also added that the shape co-ownership takes is always “terribly personal”.
“I’ve dealt with co-ownerships where people want to just be given a list of shows, and with some where people want weekly updates, when the vet is called, what the horse is doing each week and genuine day-to-day involvement.
“There is no right or wrong – and this is why it’s so important that it’s correctly documented.”
Ms Seddon said she encourages clients to plan for the worst case at the outset. Areas to consider include what happens if horse or rider is injured, if one party wants to leave, if there are disagreements about direction or plans for the horse, or a member of the co-ownership faces bankruptcy or dies. Accurate, up-to-date record-keeping is also recommended.
“There’s no point pretending it’s all sunshine and butterflies and blue skies – we all know horses are horses,” she said.
“Hopefully, you put the agreement in the drawer, you never have to look at it again and you have a wonderful, successful co-ownership. But sometimes, it doesn’t work.”
She added: “I find that by giving people a decent contractual structure to deal with any potential issues, it often helps alleviate them, because it means that people keep talking – which is key.”
