How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 53964
Experience:  32 years of experience practicing law and a businessman.
17027240
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I am entering into a partnership w/ my horse trainer on a show

This answer was rated:

I am entering into a partnership w/ my horse trainer on a show horse valued at $20K. I now own 100% of the horse, free & clear. I plan to offer him 50% of the horse if he pays all the expenses for the length of the partnership.. The only glitch comes if we get a FMV offer for the horse. What is the best way to determine how much he would get when? For example, if we were to get a good offer only 2 months after we entered into the partmership, it would not be equitable that he get 50% of that money. What is the best way to proceed?

Good evening. You would want to address this in the partnership agreement. I would suggest something like this: you agree on the fair market value of the horse; then you change his percentage interest in the partnership as he makes capital contributions to cover the expenses. Then, at any time you sell the horse, he gets the value of his contributions based on the percentage of the total contributions...i.e., his contributions divided by (his contributions plus the agreed value of the horse).

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.

 

If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

 

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

Richard and other Business Law Specialists are ready to help you

Related Business Law Questions