Or fight ...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".
The reason I asked was becauseWill it make your answer different?
It may do. If it was a real situation it would be easier to give an option if the information was clear. There could be other influencing factors.Will it make your answer different?
Is this a better version for you?The reason I asked was because
It may do. If it was a real situation it would be easier to give an option if the information was clear. There could be other influencing factors.
The way it was written using the numbers 1 &2 to describe the number of people involved and then using the same digits to identify each individual was confusing.
Boris would disagree, as the sharing is not working out for him. Dominic has Boris over a barrel on the amount payable, including for work done. Unless all users agreed it needed doing.Is this a better version for you?
Boris & Dominic decide to buy an item together for £400 they agree to share the cost 50/50, they would then have joint use, on purchase of the 2nd hand item, there was additional some work that needed doing on it to make it more comfortable for both theirs & the joint 3rd party involved, (the 3rd party has no financial involvement or at least not in this part of the scenario). Boris gets the work done & pays the £35 for the upgrade/repair. After a period of time Boris decides that as Dominic is not prepared to look after the item correctly & that sharing the item isn't working for him, so Boris wants to offer Dominic money to buy out his share to get sole use, but also appreciates that Dominic may want to buy Boris out of the agreement.
So what are the numbers?
Boris pays Dominic £200 or Dominic pays Boris £235
Boris pays Dominic £182.50 or Dominic pays Boris £217.50
Are there any other alternatives?
Depreciation &[BB] use since purchase [/B]are not factors to be included.