Legal Definitions - indivision

Indivision refers to a legal state, primarily found in civil law systems, where multiple individuals or entities own a single piece of property together without dividing it into distinct, separate physical portions. In this arrangement, each co-owner holds an undivided interest in the entire property, meaning they have rights and responsibilities over the whole asset rather than exclusive rights to a specific part of it. The property is owned in common, and no single owner can claim exclusive possession or use of any particular section without the agreement of the others.

• Example 1: Family Inheritance of Real Estate

  Imagine three siblings, Sarah, Ben, and Chloe, who inherit their parents' vacation home after their passing. They decide to keep the property rather than sell it immediately. In this scenario, the vacation home is held in indivision. Sarah doesn't own the living room, Ben doesn't own the master bedroom, and Chloe doesn't own the backyard. Instead, each sibling has an undivided one-third interest in the entire house and the land it sits on. They collectively own the whole property, sharing the rights to use it and the responsibilities for its upkeep, without any physical division of ownership.

• Example 2: Co-owned Business Equipment

  Consider two entrepreneurs, Maria and David, who start a small manufacturing business together. They jointly purchase a specialized, high-cost industrial machine that is crucial for their production process. This machine is held in indivision between them. Maria cannot claim exclusive ownership of the machine's robotic arm, nor can David claim the control panel as solely his. They both have an undivided interest in the entire machine, sharing its use, maintenance, and any profits generated from its operation. Their ownership is not physically separated into components but applies to the whole asset.

• Example 3: Shared Ownership of a Collectible Asset

  A group of five art enthusiasts decides to pool their resources to purchase a rare and valuable painting at an auction. Each person contributes an equal amount, and they agree to co-own the artwork. The painting is then held in indivision among the five friends. No single friend owns a specific corner, color, or brushstroke of the painting. Instead, each individual possesses an undivided one-fifth interest in the entire artwork. They collectively own the whole piece, sharing in its value, display arrangements, and any decisions regarding its future.