coownership

Co-ownership is a legal arrangement in which two or more people hold ownership interests in a single asset or group of assets. The arrangement specifies how use, management, and disposal are shared. Co-ownership is common for real estate, businesses, and certain financial assets, and can arise through purchase, inheritance, or gift.

The main forms are joint tenancy with right of survivorship, tenancy in common, tenancy by the entirety, and, in some jurisdictions, community property. In joint tenancy, owners have equal shares and a right of survivorship. In tenancy in common, shares may be unequal and there is no automatic survivorship. Tenancy by the entirety applies to some married couples and offers mutual survivorship. Community property regimes exist in some places and typically treat most assets acquired during a marriage as equally owned.

Co-owners usually must agree on significant decisions and share costs and liabilities in proportion to their interests. If agreement cannot be reached, remedies include buyouts, mediation, or partition, which can lead to sale of the asset or division of it. Many co-owners use a co-ownership or buy-sell agreement to manage exits and rules for use.

Tax and financial implications vary by jurisdiction. Typically, each owner reports income, deductions, and gains on their share. Co-ownership can lower individual costs but raises risks of disputes and difficulties in selling. It is important to establish clear legal terms and understand local rules before forming co-ownership.

This concept applies widely, including residential property, commercial property, and business ventures.