Legal Question in Business Law in Colorado

Horse Ownership Issues

My girfriend and her sister started a horse business in August of 2006 to purchase, train and resell quarterhorses for profit. The horses were bought on the 19th of August, 2006 and the business filed its Articles of Incorporation on the 22nd of August 2006.

Four horses were bought on the 19th with a loan from a bank in the sisters name. Her name is on the registration papers and on the bill of sale. They have no written agreement whatsoever. My girlfriend paid half of the ''horse loan'' payments directly to the bank and has paid half of their expenses for the time periond up to this point. My girlfriend has been the primary trainer of the horses and the sister has done the books.

The sister has left the business and is now claiming that she is 100% owner of the horses as well as the business. We have the horses in our possession and she has tried to take them once before and she was told by the police officer that she would need a court order to remove the horses.

(Yup this is a long one)

My question is, is my girlfriend truly 50% owner of the horses in the eyes of the law and if so, what do we have to do to get legal standing as 40% owner of the horses?


Asked on 6/09/09, 6:15 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: Horse Ownership Issues

Sorry about the problems. I would say that your girlfriend has an argument to claim that she has a 50% ownership in this joint venture or whatever they agreed to prior to starting this venture.

It is unfortunate that they did not have a written shareholders agreement. They, however, may have a binding oral agreement regarding her interest. It does not matter that only one party is on the loan.

I would strongly advise that your girlfriend contact an attorney and get this matter resolved. She should not do or sign anything without advice.

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Answered on 6/09/09, 10:14 pm


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