Splitting a bought item

[Deleted member 26715]

2 people buy an item for £400 they agree to share the cost 50/50, the item needs some work doing on it so 1 of the people gets the work done & pays the £35. The use of the item between the 2 people isn't working so 1 of them wants to offer the other person money to buy out their share to get sole use.

So what are the numbers, 1 pays 2, £200 & 2 pays 1 £235, 1 pays 2 £182.50 & 2 pays 1 £217.50 any other alternatives? Depreciation & use are not a factors

 

[sleuthey]

Total cost is 400+35=435

If the person who funded the repair wants the bike they have to pay 200 to the other person so they have paid 435 in total.

If the other person wants to buy it then they simply have to pay 235 to the person who funded the repair so they will have paid 435 in total

Right I think iv finished editing out all my errors now.

 

[furball]

Is this a hypothetical question?

 

[Beebo]

The depreciation issue depends on how long ago it was bought and how much use each party has had from it.

Is the item still worth £400?

The party selling can’t expect full refund of their outlay if they have had years of use from it.

 

[sleuthey]

The depreciation issue depends on how long ago it was bought and how much use each party has had from it.

Is the item still worth £400?

The party selling can’t expect full refund of their outlay if they have had years of use from it.

The OP has advised depreciation is not a factor so yes it’s still worth £400

 

[MartinQ]

2 people buy an item for £400 they agree to share the cost 50/50, the item needs some work doing on it so 1 of the people gets the work done & pays the £35. The use of the item between the 2 people isn't working so 1 of them wants to offer the other person money to buy out their share to get sole use.

So what are the numbers, 1 pays 2, £200 & 2 pays 1 £235, 1 pays 2 £182.50 & 2 pays 1 £217.50 any other alternatives? Depreciation & use are not a factors

I'd get a hacksaw out and see how much the other person values their half (if you can't agree beforehand).

 

[Deleted member 26715]

Is this a hypothetical question?

Will it make your answer different?

 

[Cycleops]

Judgement of Solomon would settle it as @MartinQ says.

 

[MartinQ]

Judgement of Solomon would settle it as @MartinQ says.

Things are only as valuable as their perceived value. Reason is often left far behind.

 

[twentysix by twentyfive]

Didn't the pair of them sign a pre-nup before all this kicked off?

 

[Slick]

1 pays 2 £182.50 & 2 pays 1 £217.50

That would be my understanding with both paying the exact same despite who did what to who.

 

[Notafettler]

£200 and £235 what else can it be? The person who didn't pay for the repair is getting the benefit of the "repair". If they buy it (hence £435) While the person who paid for the repair is not benefiting from the repair as they paid for it. They should of course receive at the very least £400 + (£35 + inflation or the best available interest rate)

.

 

[srw]

They talk to each other and agree amicably what the fair split is, taking care not to sour any future relationship they might want to have.

 

[Deleted member 26715]

They talk to each other and agree amicably what the fair split is, taking care not to sour any future relationship they might want to have.

Potentially it is beyond that point already

 

[rikki]

They talk to each other and agree amicably what the fair split is, taking care not to sour any future relationship they might want to have.

This is obviously the "sensible approach", but as you say - it's a bit more complicated than that.

The present and future relationship of the parties may be the paramount concern (of one or both). If it's not, then all sorts of factors come into play other than "fairness".

Is the other party happy with the present half share arrangement? If yes, then the offer to buy them out will have to be too good to refuse (i.e. more, maybe a lot more, than they paid). I presume that they can't be made to sell.

Can a suitable replacement be acquired for the same amount? If the alternative for a happy party is to acquire their own item, then this may be the price (£435) they demand to exit the arrangement. The alternative for the unhappy party is to go and buy their own item for £435. How much premium can the happy party negotiate for their half share plus the unfettered enjoyment of the other half?

Is the item special or unique? Then all bets are off. Until the happy party wants to sell, the price is whatever they demand.

This is why partnership/shareholder/family business agreements are so important (and so much "fun" when things go wrong).

If they can agree that a sale should happen and the sticking point is the price, then there may be solution. Many agreements include a "shotgun clause". The party (A) wishing to buy out the other party (B) nominates the price. B must either sell at that price or buy A's share at that price. This is like "You cut, I'll choose".