Unfortunately, not all marriages end in happily ever after.  In fact, half of all marriages end in divorce.  Going through a divorce can be an emotional and traumatic experience for anyone.  This is especially true when children are involved or there are disputes about money. But when you’re a horse person, divorce can present a different set of challenges.  What happens to your champion show horse when the marriage falls apart?

Can I keep my horse?

You should first know that a horse is considered property in the eyes of the law.  Like all property, how the horse is treated in a divorce will depend on whether it is legally considered “marital property” or “separate property.”  The laws in each state vary; however, generally, if a horse is acquired during the marriage, it will be considered marital property.  This is true even if the horse is only in the name of one spouse.  On the other hand, if the horse was owned individually before the marriage or was gifted to an individual spouse, then it is generally considered separate property.  Separate property is not treated as a marital asset and is not part of the divorce proceedings.  Essentially, you get to keep the horse and have all the say on what happens with it.

While it may seem relatively straightforward, determining whether the horse is marital vs. separate property can be complicated.  In some instances, if the value of the horse appreciated during the marriage through active efforts of a spouse, then the increased value could be considered marital property.  For example, you came to the marriage with an unproven yearling. Your ex then spent hours in the saddle breaking and training the prospect, without charge, resulting in the horse becoming a valuable futurity winner.  The increased value of that futurity horse could be considered marital property and made part of the divorce.

Will I have to sell my horse?

After you determine whether the horse (or part of the horse) is marital property, you will next need to value the horse.  The easiest way to accomplish this is for all parties to agree.  However, it goes without saying that many divorces are not so friendly.  In the event that you and your ex cannot agree on the value, you will need to get an outside appraiser involved.  Both parties can agree on one appraiser or each can hire his or her own. The appraiser will determine the fair market value of the animal for purposes of the divorce and will consider variables such as the initial purchase price, level of training, winnings, breeding value and so on. An appraiser; however, does not consider any emotional value you may place on the horse.

Once the horse is valued, the horse will then need to be split between the parties. There are several ways the horse can be split in a divorce.  In some cases, one party wants the horse and the other wants nothing to do with it.  In this scenario, the horse may be kept entirely by the party desiring the horse, while the other party elects to keep a different marital asset of a similar value.  Alternatively, the party who truly wants the horse may choose to buy the other party out.  Of course, the parties always have the option to mutually agree to sell the horse and split the money.

In other instances when both parties want to keep the horse, they may decide to enter into joint ownership of the horse post-divorce.  Sometimes joint ownership is also used when the parties are professional trainers and use the horses for business.  Joint ownership has its advantages; however, if the parties choose this option, then there should be a detailed written agreement in place addressing issues such as payment of board and training, vet bills, insurance costs, showing rights, rights to cash prizes and earnings from competition, selling rights and transfer of ownership in the future and any other issue that may be important to the use and ownership of the horse.  Additionally, if the horse is a mare or stud with breeding potential, a joint ownership agreement should specifically address breeding rights, including rights to frozen semen or embryos along with rights to any offspring. 

Ultimately, if the parties cannot come to agreement on division of the horse, the court will likely order that the horse be sold and the profit split between the parties.  Currently, there is no such thing as horse custody rights.

What if the horse belongs to my child?

If the horse is primarily ridden and shown by a child who is responsible for its care or has a strong bond with the horse, then the courts may take this into consideration when dividing marital property.  Under these circumstances, the custodial parent would be more likely to take possession of the horse. However, this may also implicate issues of child support for the payment of the child’s extracurricular activities, including the costs associated with horse care and showing.  Of course, all horse show parents know that showing horses is an expensive hobby.

Should I get a “pet-nup” agreement?

You have heard of the term “prenuptial agreement,” but you have probably never thought of a “pet-nup” agreement.  This is simply a tongue-in-cheek way to describe an agreement between a couple addressing the custody, care, and financial responsibly for a horse in the event of a divorce. Prior to marriage, you and your future spouse can define your wishes concerning the horse in a traditional prenuptial agreement.  This agreement is a contract that addresses the ownership and division of assets should the marriage fail.  Typically, prenups address how to divide large assets, such as a  bank account or a house, how to handle debt, what happens to inheritances, and how the parties may be financially responsible to each other in divorce.  However, if your horse is of significant economic value (i.e., a multiple World Champion producing stallion) or is of high sentimental value (i.e., the Buckskin walk-trot horse you’ve had since you were a kid), then it would be wise to include that horse in your prenup. Alternatively, if you are already married, then you can enter into a postnuptial agreement at the time of the purchase of a particular horse.  The only difference between a prenuptial and postnuptial agreement is that the postnuptial agreement is drafted and entered into after the marriage. 

Divorces are generally messy and emotionally charged.  If you find yourself in the midst of a divorce, be sure to consult with an experienced and knowledgeable attorney to help navigate the unique issues of dividing your horse. 

Katherine Jarve is a partner at the Marlton, New Jersey law firm of Jarve Kaplan Granato Starr, LLC. She is licensed in New Jersey and Pennsylvania and maintains a practice in personal injury and civil litigation, including equine related issues. Katherine spent her childhood competing on the national AQHA show circuit. This article is for informational purposes only and is not intended to be legal advice. If you have a specific legal question or problem, consult with an experienced equine law attorney. Questions, comments or suggestions can be e-mailed to kjarve@nj-triallawyers.com.