Posted on July 10, 2009 by Jill R. Elsey

What Documents Do You Need To Sell A Horse?

Horses are not required to be registered in any particular place or with any particular registry. In fact many horses are not registered at all. The way to clearly evidence the transfer of ownership of a horse is to document the transaction with a purchase and sale agreement, followed by a bill of sale. 

It is important to start any transaction with a purchase and sale agreement as opposed to a bill of sale.  This agreement should contain all the terms upon which the buyer and seller have agreed, such as when money will change hands, when and where the horse will be delivered, and the seller’s warranties about the horse. It is wise to also include a procedure for resolving disputes. If you are the buyer, you should document the fact that the sale is conditioned upon a complete veterinary examination, if that is the case.  If you are the seller, you should state that the sale is “as is” and that you are not making any warranties other than your 100% title in the horse, if that is the case. 

 

A bill of sale is the document that memorializes the transfer of legal title of the horse from the seller to the purchaser.  Many sellers hold breed registry transfer papers until the buyer has paid off the horse or met other conditions. These sellers should beware that under the Uniform Commercial Code (which governs horse sales transactions, including those where there is no written agreement), it is assumed that title passes to the buyer when the seller gives the buyer possession of the horse. Thus, a seller should never sign a bill of sale or give possession of the horse to the prospective buyer until the buyer has met all the terms and conditions of the sales agreement. 

  

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Posted on June 2, 2009 by Jill R. Elsey

Horses of Divorce

Sometimes horses can be as difficult to deal with in a divorce as children. A marriage relationship creates three estates: 1) the community estate consisting of property owned and debts owed by the spouses together; 2) the separate property estate of the husband consisting of his property owned and debt owed by him individually; and 3) the separate property estate of the wife consisting of her property owned and debt owed by her individually. In Texas, when a couple is getting a divorce, the characterization of property whether community or separate is important because the court must decide where all the property goes. The Texas Family Code creates a presumption that all property possessed by either spouse during or at the end of marriage is community property. Stanley v. Stanley, 294 S.W.2d 132, 136 (Tex.App.—Amarillo 1956, writ ref’d n.r.e.). 

The definition of community property is limited to property that is “acquired during marriage” that is not separate property. The community-property presumption in Texas is broader and includes all property in either spouse’s “possession” during marriage or at the time of dissolution as community property. See Tex. Fam. Code §3.003(a). 

 

To establish that a horse acquired during the marriage is not community property, you must present evidence to rebut the community property presumption. One common method of rebutting the presumption is to trace the title. Facts that affect title may be that one spouse bought the horse before the marriage, or was given the horse as a gift. Another way to rebut the presumption is to show that the spouses have a contractual agreement that property obtained during the marriage remains separate property. The presumption of community property may also be rebutted by establishing that one of the spouses purchased the horse exclusively with his or her separate property funds.

 

The person wishing to establish that the horse is separate and not community property must present clear and convincing evidence of the property’s character. See Tex. Fam. Code §3.003(a); see McKinley v. McKinley, 496 S.W.2d 540, 543 (Tex. 1973). 

 

If the court decides the horse is community property, the court may order a distribution of the property, for example, that the spouse that is awarded the property to care for the animals will maintain title and possession of the horse. In an amicable divorce, the spouses may agree to a solution. They can sell the horse and split the proceeds. One spouse can get the horse, while the other gets some other property. Family law courts typically strive to work things out fairly. 

 

When purchasing a horse, it is prudent to have documentation and also proof of where the money to purchase the horse is coming from. Follow the money.

 

Whose name is on the papers?  It is a common misconception that the registration papers of a horse determine the owner of the horse. Association and breed registry papers are not similar to the title on your car. A vehicle title evidences who owns the vehicle. Registration papers merely show who registered the horse for breeding or competing purposes. Although the facts of each case are unique, the name on the registration papers is not hard proof of ownership. To learn more about documents that evidence ownership read the upcoming post.

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