It is more and more common that a point of contention in HNW divorce is the question of who will retain the horse. Horses can be of substantial value and incur significant upkeep and maintenance costs.
A horse will be treated as an asset (in effect, a chattel) on divorce. As a general rule, if the horse was owned before the marriage, it will be considered a non-matrimonial asset and therefore, ringfenced. However, if the horse was purchased during the marriage, then it will be considered a matrimonial asset and require a decision to be made as to who, if anyone, retains it.
In such circumstances, if the parties are unable to agree, then a judge mayconsider several factors such as:
Upon determination, a judge can order that one party retain the horse, that one party transfer the horse to the other by way of a property adjustment order, or the sale of the horse. Alternatively, in less acrimonious divorces, if both parties wish to share the horse, then the parties may agree to a ‘time-sharing’ arrangement – much like custody of a child – deciding who will have the horse on which days.
The costs and upkeep of a horse can be extremely expensive, so one party may argue that the horse should be sold when exorbitant maintenance requests are made. In such situation, judges will consider the overall matrimonial pot and undertake a balancing exercise to see whether the upkeep of the horse is reasonable in the context ofthe lifestyle of the parties and available financial resources.
To avoid dispute and uncertainty through litigation, parties can enter into agreements that deal with the ownership and maintenance of pets and assets from the outset.
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