Dog Co-Ownership Agreements: What Pet Owners Need to Know

What are dog co-ownership agreements?

Co-Ownership Agreements are contracts drawn up between dog co-owners to ensure that all legalities are covered for the Welfare of a dog that is owned by more than one party. This will usually relate to the breeding of a dog for show or for other commercial activities.
A Co-Ownership Agreement will avoid any future disagreements between the parties with regard to the dog’s welfare, training, and breeding.
A Co-Ownership Agreement will also cover which owner is the "Registered Owner" of the dog. The Registered Owner is the person in whose name the dog is registered with the Kennel Club and the person who will be deemed the "owner" of the dog for KC purposes . This is relevant not only for breeding and showing but, crucially, for the registration and administration of microchipping. The Registered Owner will be responsible for keeping the dog’s microchip records up to date and complying with the various legal requirements regarding dog ownership, such as vaccination.
As the microchip must be linked to the Registered Owner, if the Co-Ownership Agreement does not identify the Registered Owner, then the microchip details can be confused and the wrong person will be linked with the dog.
For these reasons it is important to have a Co-Ownership Agreement in place to avoid future disputes and administration issues in the ownership of the dog.

Components of a dog co-ownership agreement

In drafting a dog co-ownership contract, certain essential provisions are fundamental to ensuring that both parties to the contract understand and agree to the scope of their respective rights and obligations with respect to the dog or dogs involved. A clear delineation of ownership rights is critical. Who owns the dog (or dogs)? Is it a percentage ownership? Is there a possibility of competing ownership claims? Which party is authorized to register the dog in kennel club records? Who may act on behalf of the dog? Who is authorized to execute the contract on behalf of each party? Where will the dog live? Will the dog be bred, and if so, under what terms? Will the dog be shown? What type of recognition are both parties interested in? Will someone else be handling the dog for either party? What limitations, if any, are there on advertising the dog? Does the dog qualify as a "champion"? Is the dog importable? If so, has an import notification been given to the applicable kennel club? Will the dog be microchipped? Are health clearances required? Does the dog need to be an AKC Pending title holder for the essential AKC record keeping? How much of a co-owner fee is to be paid, if any? When is it to be paid and under what terms? Are breeding and/or litter conditions specified? Are there sale price requirements? Are they percentage based? Are there "breeder’s choice" and "pick of" requirements? What are the terms of advertising? Are there competition limitations? Are there breeding limitations? Are there show limitations? Are there training limitations? Are there grooming requirements? Are there medical care requirements? It is critical in a co-ownership contract to consider such key items and cover them in detail to avoid potential misunderstandings down the road.

Advantages of a dog co-ownership agreement

A properly drafted dog co-ownership contract can address the rights and responsibilities of each party in a manner that promotes harmonious co-ownership, avoiding disputes down the road. While parties can and do reach an agreement on co-ownership without a written contract, doing so increases the likelihood of misunderstandings and future conflicts. Commonly covered topics in a co-ownership contract include: Because co-ownership agreements are common, well-constructed contracts addressing issues such as breeding, stud fees, health testing requirements, and custody of the dog after it has reached a certain age can and should be negotiated ahead of time to prevent future disagreements between co-owners. An experienced dog attorney can assist co-owners with drafting a timeshare agreement to address the custody arrangement, as well as a dog co-ownership contract covering other issues.

Troubleshooting common dog co-ownership issues

Co-ownership of dogs between both breeders and buyers may seem common to many, but the implications of those contracts is not. With the number of pets in the U.S. now over 70 Million, it is safe to say that a good number of those are co-owned. Whether it is an agreement between the breeders and new owners, breeders between themselves, or even pet guardians who share the dog in a custody battle situation, consideration must be given to the terms of these agreements.
In dog and other animal breeding, there are many reasons why two or more individuals may wish to enter such an agreement. They include the ability to breed the dog more than one time a year (as allowed by most clubs), the idea that it will strengthen the breed (hence the name "co-breeder"), or to make a pretty penny for the owners (i.e. stud fees). Yes, it can be a very lucrative business venture when done correctly. But when done in haste, it can be a minefield for legal entanglement and destruction. For instance, a good number of clients have come to me with situations where one owner has sold the dog to a third party, or worse, one or more of the owners has refused to return the dog to the others after it has been bred, thus preventing the others from future financial benefits from that dog. Although many clients have the impression that this can only happen in a family law context, nothing could be further from the truth. And they may be further surprised to know that these types of cases are even more complicated than family law custody cases. Family law courts (the ones that handle custody disputes between parents) are used to dealing with custody disputes and are set up to handle them.
Animal co-ownership disputes are not so simple. There are a number of different issues that come into play, and even if the parties are able to resolve their issues, if they don’t have a contract in place it can take a substantial amount of finances to enter into litigation to resolve the matter. Hence, the importance of having a dog co-ownership contract in place (and preferably reviewed by a lawyer)!
Let’s take a look at an example of a typical dog co-ownership dispute and how a good contract could have prevented it.
Let’s assume that two people from two different states have entered into a co-ownership agreement. In the agreement, one of the parties lives in the state of Florida, and the other in the state of New York. They have agreed that any and all breeding would be done in the state of Florida, for the benefit of both parties, and the stated purpose is to produce and sell puppies for the maximum amount of money that each of them can agree on.
After the first breeding, the owner is notified by the veterinarian that the dog is bred. Afterward, it seems that the dog and owners become very attached, and only the person in New York takes possession for the responsible rearing of the pups, while the person in Florida never actually even visits the dog after the breeding. This creates problems when it comes time to sell the puppies and split the proceeds. The New York owner wants to sell the puppy in New York, where he knows the buyer. The Florida owner however wants to sell it in Florida, where she has found the puppy to be worth much more money. They are now at odds with one another.
To make matters worse, the dog in New York is attacked by another dog, and it needs significant medical care. The New York owner refuses to pay any of the medical bills, and likewise refuses to return the pup to Florida for similar treatment.
These issues have been handled in court, but in this instance, they ended up costing a substantial amount of money for the resolution of the matter, and the parties have lost the opportunity to breed the dog again.
If the parties had done the following, none of the above would have occurred:
Even though we believe that every potential dog co-owner can benefit from having a contract drawn up prior to the actual purchase of the dog, especially in New York and Florida, some people decide not to. We simply caution that if contract terms are not followed, the matter may end up in court, and that the cost of litigation may be out of range for some co-owners and/or breeders.

Tips for creating a stable co-ownership agreement

When it comes to co-ownership, several matters require attention in the drafting or review of a dog co-ownership contract. In addition to the general content required in any contract (such as the names of the co-owners and a description of the dog), a few additional provisions should be considered:
Extension of Duties
Not all co-ownership contracts place obligations on the co-owners where one owner of the breeding stock fails to meet his or her obligations. To guarantee compliance with obligations, a co-ownership contract can provide that the co-ownership may be extended until specific events occur which could include:
Priority of Sale
One co-owner may be less inclined to sell the dog at the corner store for a nominal price given the potential appreciation of a dog . For this reason, an agreement to give an owner a certain amount of time to purchase the interest of the other owner or owners may be helpful to avoid later disputes concerning a sale to a stranger.
Release from Obligation
In the unfortunate circumstance that a co-ownership does not succeed, a release from obligations can protect one owner from obligations where the other owner fails to fulfill his or her obligations under the agreement. An example is where one owner fails to provide adequate care and the other owner wants no part of the matter.
Breach by Breeding Stock Owner
If there are any conditions which must be met before the co-owner of the breeding stock has the right to breed the dog, the contract should clearly state those conditions.

Seeking legal guidance on dog co-ownership agreements

When embarking on a dog breeding venture, having a clear and legally binding co-ownership contract in place is of utmost importance to avoid conflicts down the line. A mutually agreed-upon contract should be drafted to ensure all parties’ rights and obligations are protected, which is why consulting a legal expert during the drafting or signing phase is crucial. Consulting a specialist who has experience in animal law can help you navigate through the complexities of a co-ownership arrangement.
Legal professionals can assist you in understanding your state’s laws and regulations relating to dog co-ownership as well as provide guidance for legal protection. They can define issues such as the scope of ownership, breeding rights, and liabilities in detail, all of which are important factors in a co-ownership contract.
A contract that is not legally enforceable, whether due to lack of clarity, ambiguity, or incongruences, could also lead to potential conflict down the line. The contracts should be amended as necessary to ensure all parties have the same understanding of the rights and obligations being exchanged. Consulting with a legal expert can help you identify the enforceability risks associated with the contract and allow you to improve upon any existing ambiguities prior to final signing.
An experienced legal professional can help assess the validity of the contract and advise you on which clauses should be in place to protect your rights under the contract. An animal law specialist can also assist you in filing a legal claim should the matter escalate into a dispute.
Even once the contract is signed, parties may have discrepancies in their understanding of what the contract states based on subjective interpretation or unintentionally ambiguous language. Having a specialist on hand can help you and your co-owner if any issues regarding interpretation or interpretation arise.

Examples of successful dog co-ownership contracts

Successful dog co-ownership arrangements are characterized, first and foremost, by the cooperation of the parties involved. Secondly, the Greater Good Animal Rescue advises that dog owners "Think like a business." It is great advice. The new parent must clearly understand the entire cost of the animal, and how to share those costs with any co-owners. The parties should be as specific with their expectations as possible, even though the dog is a family member, it is not a human family member. Family dogs do not have formal visitation schedules or set amounts of time to spend with a family member. It is a completely informal arrangement. This can go wrong, but if the parties agree upon a rough schedule, and comply with their obligations under the contract, it is often a great situation for everyone.
Co-ownership is the most common sharing arrangement and is exactly what it sounds like – two people own the same dog. This may sound awkward, but in these cases, the parties customized their contract to fit their needs and has had no negative consequences; rather , it has been an amazing positive for both of the families.
One couple purchased a dog together before marriage. The contract provided that they would equal care of the dog, in the event of a separation. Either party could have a primary care, but the other would have equal (un-negotiable) time spent with the dog as agreed upon by the owners. They divided the expenses in half, providing the dog with all vaccinations, a fenced yard, dog daycare, all food, and treats. When the couple separated, the arrangement was immediately memorialized in writing, and both parties followed the terms of the contract. They devised a rough schedule of two weeks on and two weeks off, providing 50% of the expenses, but dividing the cost of fittings such as flea and tick medications, giving each owner 50% of the cost on top of the normal costs. Neither owner has any problem complying with the contract terms. It has allowed both owners to have a good relationship with the dog and with each other. Neither owner is bitter toward the other and they take pride in the dog. That dog, a standard poodle, is spoiled and happy and much loved. Nice job!