Typically, co-ownership arrangements are created for one of three purposes: showing, breeding, or allowing the breeder to keep an element of control over what happens to their pup. While there are benefits to co-ownership agreements, many organizations and clubs do not encourage their members to engage in these agreements due to the legal issues and ownership disputes that typically arise. 

We’ve shared some important considerations and questions you should ask when considering a co-ownership arrangement. You can also watch our Good Breeder Webinar on Co-Ownership Agreements (available exclusively to Good Breeders) for more information and insights from The Good Dog Legal Team! 

We note that this article is provided for general information purposes only, and shall not be construed as legal advice or creating an attorney-client relationship of any kind.

Benefits of co-ownership agreements

• A party can typically retain more control over breeding rights 
• A party can ask that certain obligations are fulfilled by new owners before the dog’s ownership is fully transferred, such as completing all required health testing, spay/neuter, titling, etc. 
• The possibility of a mentor-mentee relationship 
• Benefits for showing a dog, including sharing financial costs, the possibility of using a professional handler of their choice, etc.

Disadvantages of co-ownership agreements

• One party might become responsible for the actions of their co-owner. For example, if one co-owner is sanctioned by the AKC, the dog is typically banned for a certain period of time 
• Disputes regarding ownership or contract responsibilities 
• Difficulties in signing off on contracts related to the dog’s breeding career, including stud contracts, litter registrations, individual (offspring) registrations 
• Difficulties in terminating a co-ownership relationship

Questions to address in your co-ownership agreement:

• Which party will pay for expenses? 
• Where will the dog live? 
• Is the custodial owner required to keep the other co-owner(s) regularly informed of the dog’s care, well-being, etc.? 
• What happens if the custodial owner decides they do not want to keep the dog? 
• Which party will be in charge of veterinary decisions and obtaining veterinary care? 
• Can one party sell their interest in the co-owned dog? If so, is approval from the non-selling party required? 
• What constitutes a breach or violation of the co-ownership arrangement? 
• What are the consequences for such a breach (e.g., reasonable monetary damages, payment of lawyer fees, or an action such as substituting another dog or promising a future puppy)? 
• Is mediation required in the event of a contract breach? 
• How can the contract be terminated and what happens when the contract is terminated (e.g., you could include language that requires the terminating co-owner to do all things necessary to transfer the AKC title to the other owner)?

Questions to address in your co-ownership agreement for a pet dog:

• Will the co-owner have the right to show or breed the dog? 
• Will those rights terminate at some point (i.e., after a certain number of litters is born, after a championship is earned, etc.)?

Questions to address in your co-ownership agreement for a show dog:

• Who will handle the dog (one of the co-owners, a professional handler, etc.)? 
• Which party will select the handler? 
• Which party pays the handling fees, entry fees, transportation costs, advertising fees, etc.? 
• Is there a cap on how much will be spent on such expenses (per year, in the dog’s lifetime, etc.)? 
• Can a co-owner decide they no longer want to participate in cost-sharing if the costs reach a certain threshold? 
• Which party decides which shows to enter? 
• Where will the dog live while being shown?

Questions to address in your co-ownership agreement for a breeding dog:

• What health testing and medical clearances are necessary? 
• Who will pay for health testing and medical clearances? 
• If applicable, how will a stud dog or breeding dog be chosen? 
• Will both parties have approval rights? 
• Who will pay the stud fee? 
• What happens if no live puppies are produced? 
• Will the litters be co-owned? 
• Who will pay the expenses of the litters? 
• How will the litter proceeds be divided among the parties? 
• Who will whelp the litter? 
• Who will approve the puppy buyers for the litters and who will decide on the price of the puppies? 
• Who decides if puppies are healthy enough to go to new homes and the age puppies will leave? 
• Will each co-owner get a puppy from the litter?

A few things to remember!

• Your co-ownership agreement should always be in writing!
• Have an honest conversation with your prospective co-owner about each of your expectations before you enter into an agreement.
• Relationships can change (and unfortunately sour), so when preparing a co-ownership agreement, you should plan for the best but also prepare for the worst!
• Have an experienced attorney review your agreement. You can always refer to Good Dog’s Recommended Lawyer List!  
• Most organizations (including dog clubs) will not intervene in co-ownership disputes unless and until a court has made a ruling.
• Your enforcement abilities may be limited if one party violates the contract. In many cases, your remedies may be limited to monetary damages (if any).