Comprehensive Guide to Co-Ownership Agreements in Red Bank
Co-ownership agreements help property owners in Red Bank allocate rights and responsibilities when two or more people share ownership of real estate. These agreements set expectations for contributions toward mortgage payments, taxes, insurance, maintenance, and decision making. Well-drafted documents reduce friction by clarifying what happens if an owner wants to sell, becomes incapacitated, or passes away. Residents of Red Bank and surrounding Hamilton County turn to local counsel to prepare or review these agreements so they reflect Tennessee law and the parties specific goals while promoting long term stability in shared ownership.
A practical co-ownership agreement addresses daily management matters and long term contingencies so co-owners avoid misunderstandings that can lead to costly disputes. Typical provisions cover decision making authority, access to the property, expense allocation, dispute resolution methods, and buyout formulas. Parties often include directions for dividing proceeds on sale and procedures for resolving deadlock. By anticipating foreseeable problems and putting clear processes in writing, the agreement becomes a tool for preserving relationships and protecting investment value within the Red Bank real estate context.
Why a Co-Ownership Agreement Matters for Red Bank Property Owners
A written co-ownership agreement provides clarity, reduces uncertainty, and creates predictable outcomes if ownership circumstances change. Without written terms, state default rules may govern and those rules might not reflect the parties intentions. An agreement tailored to the specific property and owners can allocate financial obligations fairly, address succession concerns, and establish methods for resolving disagreements. For Red Bank residents, a clear agreement helps maintain property value and ensures that all owners understand their obligations and options, which can prevent conflicts and costly litigation later on.
About Jay Johnson Law Firm and Our Approach to Co-Ownership Matters
Jay Johnson Law Firm serves clients across Tennessee, including Red Bank and Hamilton County, with practical legal solutions for real estate and estate planning matters. The firm focuses on drafting and negotiating co-ownership agreements that reflect individual goals and local legal practice. Clients receive clear explanations of options, careful drafting to minimize ambiguity, and coordinated planning that ties property arrangements to broader estate plans when appropriate. Communication is prioritized so clients understand how proposed language will function in everyday situations and in emergency scenarios affecting property interests.
Understanding Co-Ownership Agreements and What They Cover
Co-ownership agreements are contracts among property owners that govern how they will use, maintain, and transfer ownership interests in a piece of real estate. These agreements often specify how expenses are shared, how decisions are made, and the process for one owner to buy out another. They can also include terms addressing leasing, property improvements, and insurance responsibilities. Understanding these elements helps co-owners draft provisions that match their financial arrangements and desired level of involvement in property management in the Red Bank area.
When negotiating a co-ownership agreement, parties should consider both likely and less likely events, such as changes in income, relocation, disability, or death. The agreement can designate who manages day to day matters, require notice for significant actions, and describe remedies if one owner breaches financial or maintenance obligations. Thoughtful drafting reduces ambiguity and preserves long term relationships by setting reasonable expectations. Local counsel can ensure language aligns with Tennessee property law and that the agreement will function as intended under probable scenarios.
Defining Co-Ownership Agreements and Key Concepts
A co-ownership agreement is a contractual arrangement among two or more owners of the same property that sets out rights and responsibilities. It differs from a deed or title document because it controls internal relationships rather than establishing legal ownership form. Typical clauses define ownership shares, financial obligations, decision thresholds, transfer restrictions, and dispute resolution steps. The agreement may reference other documents like deeds and wills to coordinate outcomes. In Red Bank, properly drafted agreements account for local tax realities, common practices, and how property use intersects with municipal regulations.
Core Elements and Typical Processes in Co-Ownership Agreements
Core elements of a co-ownership agreement include identification of owners and ownership percentages, allocation of expenses, procedures for capital improvements, and rules for sale or transfer. Many agreements include mechanisms for resolving disputes, such as mediation or arbitration, and buyout formulas based on appraisals or fixed valuations. Processes for handling delinquent contributions, default, and property management responsibilities are often essential. Careful drafting ensures these processes are enforceable in Tennessee courts and workable for parties managing the property day to day in Red Bank.
Key Terms and Glossary for Co-Ownership Agreements
Understanding common terms used in co-ownership agreements helps parties read and negotiate with confidence. This glossary covers frequently encountered words and phrases and explains how they operate in practice. Familiarity with these terms simplifies decision making and makes it easier to spot provisions that need clarification. Local counsel can explain how these concepts interact with Tennessee law and tailor definitions so they match parties expectations and reduce potential ambiguity when the agreement must be interpreted or enforced.
Ownership Interest
Ownership interest refers to the proportionate share each owner holds in the property, often expressed as a percentage or fraction. This share can determine how proceeds from a sale are divided and how voting rights or decision authority are allocated. Ownership interest may be equal among co-owners or reflect unequal financial contributions. Clear documentation of ownership interest prevents later disputes about contributions, tax reporting, and distribution of sale proceeds. The agreement should explain how changes to ownership interest can occur and what procedures govern those changes.
Buyout Mechanism
A buyout mechanism is the agreed method for one owner to acquire another owner’s interest, which can be triggered by a desire to leave the arrangement, a breach, or other specified events. Common approaches calculate fair market value by appraisal, apply a fixed formula, or use predetermined pricing steps. The agreement should specify appraisal procedures, timelines, funding expectations, and consequences for failure to complete a buyout. Clear buyout rules reduce conflict by providing a predictable route for transitioning ownership among parties.
Decision Making and Voting
Decision making provisions define which actions require unanimous consent, majority approval, or approval based on ownership percentage. This section can differentiate between routine matters, like maintenance, and major issues, such as sale or refinancing. Voting rules should define quorum, tie resolution, and timelines for raising objections. Well-structured voting provisions help co-owners manage the property efficiently and avoid deadlock by providing default procedures and escalation paths that reflect the parties tolerance for shared control.
Maintenance and Expense Allocation
Maintenance and expense allocation clauses spell out how operational costs, repairs, taxes, insurance, and capital improvements are assigned among owners. The agreement can require proportional contributions based on ownership interest or use a different allocation method agreed by the parties. It should also explain how to handle unexpected large expenses, reserve funds, and reimbursement for improvements. Clear expense rules reduce disputes over payments and ensure the property is maintained in a manner that protects value for all owners over time.
Comparing Co-Ownership Agreements to Other Legal Options
Co-ownership agreements are one of several approaches to shared property ownership. Alternatives include formal entities such as limited liability companies, tenancy in common arrangements without a contract, or joint ownership with prenuptial or estate plan integration. Each option has tradeoffs in terms of administrative complexity, tax treatment, and flexibility. An agreement is often the simplest method to govern relations while preserving existing title arrangements. Choosing the best approach depends on long term goals, the number of owners, and how the property will be used and transferred.
When A Simple Agreement May Be Adequate:
Short Term Shared Use or Clear Exit Plans
A brief written agreement can be appropriate when co-ownership is expected to be short term or when parties have a clear exit plan, such as a scheduled sale or planned buyout. In those cases, simple terms outlining expense sharing and notice requirements may suffice to avoid misunderstandings. Even a concise agreement should define basic rights and responsibilities and the method for handling routine costs. This minimal approach keeps upfront costs down while still setting reasonable expectations for owners who will not remain partners indefinitely.
Low Risk Investments or Family Arrangements
When the property carries minimal financial risk and owners trust one another, a limited agreement may work, especially in family contexts where informal practices already govern interactions. Even so, putting basic terms in writing provides clarity and preserves family relationships by avoiding assumptions. The document should cover who pays regular expenses, who controls day to day matters, and what happens if a co-owner dies or moves away. This modest level of formality is often enough to prevent common misunderstandings without adding heavy legal complexity.
When a Detailed Agreement or Integrated Planning Is Advisable:
Complex Ownership Structures or Significant Financial Stakes
A comprehensive agreement is advisable where ownership shares are unequal, investments are substantial, or multiple owners have different goals for the property. Detailed provisions can address funding obligations, improvements, profit distributions, tax reporting, and protections against a co-owner’s creditor claims. When owners intend long term retention, integration with estate planning and title arrangements helps ensure continuity of ownership and reduces future conflict. In such cases, thorough drafting anticipates a wide range of contingencies and clarifies responsibilities among parties.
Multiple Parties or Outside Investors
When several parties or outside investors are involved, comprehensive documentation helps preserve investor expectations and protects the property from mismanagement. Detailed provisions can set standards for reporting, capital calls, transfers, and limitations on transferability to outside parties. The agreement may also provide dispute resolution pathways and insurance for both property and liability risks. Clear governance rules reduce the likelihood of costly disputes and make it easier to enforce obligations across a larger group of owners.
Benefits of a Thorough Co-Ownership Agreement
A comprehensive approach delivers greater predictability by addressing both common and uncommon circumstances that can arise during shared ownership. Detailed provisions minimize ambiguity about financial contributions, improvement responsibilities, transfer rights, and decision making. Clarity reduces the chance of disputes and provides clear remedies if disagreements occur. For Red Bank property owners, this level of planning helps protect investments and maintain stable ownership arrangements even as family or financial situations evolve over time.
Comprehensive agreements also make collaboration easier by setting up governance and communication processes, such as notice requirements and dispute resolution steps. They can preserve the property value by defining maintenance standards and funding mechanisms for repairs. When paired with estate planning, these agreements ensure property transitions occur according to owners intentions. The combined effect is reduced uncertainty, preserved relationships among co-owners, and a stronger ability to weather financial or personal changes without resorting to court intervention.
Predictability and Reduced Conflict
A clear agreement provides predictability by describing what happens in routine operations and in unexpected events. This reduces disputes by creating agreed procedures for decision making, expense sharing, and transfer of interests. When owners have a shared understanding documented in writing, disagreements can be resolved according to the contract rather than relying on assumptions or state default rules. That predictability protects relationships and decreases the potential for expensive litigation that can erode property value and personal goodwill.
Protection of Investment Value and Smooth Transitions
Detailed agreements help preserve property value by ensuring timely maintenance and fair cost allocation, and by providing transparent rules for selling or transferring interests. Provisions for appraisals, buyouts, and sale procedures prevent disputes that can delay transactions and reduce returns. Clear succession planning aligned with estate documents creates smooth transitions when an owner dies or becomes incapacitated. These protections reduce uncertainty for all owners and increase confidence that the property will be managed and disposed of according to agreed expectations.
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Practical Tips for Managing Co-Ownership Agreements
Put Agreements in Writing Early
Documenting expectations early prevents assumptions from becoming problems later. Even a concise written agreement that states who pays what and how decisions are made can save significant time and relationship strain. Including simple procedures for routine expenses, notice, and minor repairs reduces friction. Early written documentation creates a clear baseline that parties can amend as circumstances change, helping to maintain constructive relationships among co-owners in Red Bank and avoid costly legal disputes down the road.
Include Clear Buyout Terms
Coordinate with Estate Planning Documents
Co-ownership agreements should work with wills, trusts, and other estate documents to ensure seamless transitions if an owner dies or becomes incapacitated. Coordination prevents conflicting outcomes and makes it easier to carry out the owners intentions. For instance, the agreement can require notice to co-owners and set terms for transferring interests to heirs. Aligning property agreements with broader plans reduces uncertainty for survivors and increases the likelihood that the property will remain useful and valued according to original goals.
Reasons to Consider a Co-Ownership Agreement in Red Bank
Property owners should consider a co-ownership agreement when they want to define financial and managerial responsibilities, minimize future disputes, and create predictable exit procedures. Agreements are valuable whether co-owners are family members, friends, or investors. They allow parties to customize arrangements for sharing costs, defining decision authority, and protecting investment value. This proactive step is particularly helpful in communities like Red Bank where local market conditions and municipal rules affect property use and financial obligations.
Co-ownership agreements also help owners coordinate tax reporting, insurance coverage, and maintenance standards, which can reduce surprises and administrative burdens. When ownership interests are to be transferred as part of an estate plan, an agreement provides a roadmap that avoids inconsistent outcomes. A clear contract can reduce the need for court intervention and preserve personal relationships by setting cooperative processes for dealing with common problems and emergencies that affect shared property.
Common Situations Where Co-Ownership Agreements Are Important
Situations that commonly require a co-ownership agreement include purchase with friends or family, inheriting property from a relative, purchasing rental property with partners, or buying a vacation home with shared usage. Each context presents different risks, such as divergent expectations about management, unequal financial contributions, or future resale plans. An agreement tailored to the situation helps set responsibilities, timing for decisions, and contingencies for life changes, enabling co-owners to manage the property collaboratively and predictably.
Family Inherited Property
When family members inherit property, differing desires about use, sale, or rental can cause tension. A co-ownership agreement clarifies whether the property will be sold, rented, or held, and how proceeds or expenses will be divided. The document can provide a mechanism for one family member to buy out others and outline expectations for maintenance and insurance. By agreeing ahead of time, families in Red Bank can avoid disputes and preserve family relationships while ensuring fair treatment and clear procedures.
Joint Purchase Among Non-Relatives
Joint purchases among friends or investors require written terms to define contributions, profit splits, and operational control. Issues such as tenant selection, renovation decisions, and expense allocation are best handled with agreed procedures. A co-ownership agreement also addresses what happens if an owner wants to exit or fails to contribute financially. Clear rules help protect each party’s investment and provide a framework for resolving disagreements without resorting to court.
Vacation or Second Homes
Shared vacation homes benefit from rules about scheduling, maintenance responsibilities, and cost sharing to prevent holiday disputes and unexpected expenses. A co-ownership agreement can set usage calendars, outline cleaning and upkeep duties, and specify how long term decisions like major renovations are approved. Having these arrangements in writing ensures all co-owners understand their obligations and can enjoy the property without recurring conflict about access, costs, or long term plans.
Local Legal Assistance for Co-Ownership Agreements in Red Bank
Jay Johnson Law Firm provides local assistance to clients in Red Bank who need practical co-ownership agreements that reflect Tennessee law and local practice. The firm helps owners identify priorities, draft enforceable provisions, and coordinate agreements with estate planning to protect long term interests. Whether parties need a simple short term arrangement or a detailed long term governance plan, counsel can prepare documents that promote clear expectations and reduce the chance of future disputes while keeping communication open among co-owners.
Why Choose Our Firm for Co-Ownership Agreement Work in Red Bank
Clients choose Jay Johnson Law Firm for practical legal drafting and straightforward advice on co-ownership agreements. The firm prioritizes clear communication, responsiveness, and drafting that anticipates common problem areas for shared property. Counsel works with clients to identify important provisions such as expense allocation, buyout terms, and governance rules so the agreement matches the parties intentions and remains functional over time. Local knowledge of Tennessee property law and typical practices in Hamilton County helps ensure the document will perform as expected.
The firm guides clients through negotiation and drafting, making sure each owner understands the implications of proposed language. This collaborative approach helps surface potential issues early and reach balanced solutions. Attorneys also review existing agreements and suggest amendments where necessary to align the document with current goals and circumstances. Timely communication and careful attention to drafting details help clients feel confident that their property arrangements are clear and enforceable if disputes arise.
When appropriate, the firm coordinates co-ownership agreements with related legal arrangements such as wills, trusts, and powers of attorney to create consistency across documents. This coordination reduces the risk of conflicting directions at critical moments and provides a clearer path for transition in the event of incapacity or death. Clients receive practical recommendations and step by step guidance to implement the agreement and address follow up matters such as recording or title updates when necessary.
Contact Jay Johnson Law Firm in Red Bank to Discuss Your Co-Ownership Needs
How We Handle Co-Ownership Agreement Matters
Our process begins with a detailed intake to learn each owner goals, financial arrangements, and concerns about the property. We then propose flexible drafting options and review sample clauses that match the parties priorities. After negotiating language, we finalize the agreement and advise on implementation steps such as title updates or related estate planning measures. The firm remains available to answer questions and assist with amendments as circumstances evolve, helping co-owners maintain a functional and enforceable arrangement over time.
Step 1: Initial Consultation and Information Gathering
During the initial consultation, we collect information about ownership structure, property usage, financial contributions, and the parties long term intentions. We discuss potential contingencies such as sale, buyout, death, or dispute, and identify provisions that should be included. This stage sets priorities and clarifies which matters require detailed treatment versus simpler language. A thorough information gathering step ensures the agreement addresses the unique circumstances of the owners and the property in Red Bank.
Discuss Goals and Responsibilities
We ask each owner about their expectations for management, expense sharing, and future plans so the agreement can reflect those objectives. Understanding who will handle day to day tasks and which decisions require joint approval helps tailor governance provisions. This dialogue reduces misunderstandings and establishes the basis for drafting clauses that allocate responsibilities clearly and fairly among the co-owners.
Identify Contingencies and Priorities
We work with clients to identify likely contingencies, including relocation, disability, or changes in financial circumstances, and prioritize which issues should be addressed in detail. This planning helps determine whether a short form agreement is adequate or whether deeper integration with estate planning and title arrangements is necessary. Clear prioritization makes drafting efficient and focused on the most important protections for the parties.
Step 2: Drafting and Negotiation
During drafting, we translate discussed priorities into clear contract language that allocates obligations and defines procedures for routine matters and unexpected events. We present a draft for review and facilitate negotiation among the owners to reach consensus on contentious items. Language choices emphasize clarity and enforceability under Tennessee law while remaining practical for day to day property management. Revisions continue until all parties are satisfied with the arrangements and understand how the agreement will operate.
Prepare Draft Agreement
We prepare a draft agreement that incorporates ownership percentages, expense allocation methods, decision making rules, buyout mechanisms, and dispute resolution procedures. The draft includes definitions and timelines to minimize ambiguity and sets out clear steps for sale, transfer, or buyout. Attention to detail in drafting reduces later disagreement over interpretation and supports smoother enforcement if disputes arise.
Negotiate and Finalize Terms
Once the draft is circulated, we help negotiate changes and mediate differing interests so the final agreement balances the parties needs. We explain the practical effect of proposed language and suggest alternative wording to avoid unintended consequences. After reaching agreement, we prepare the final document for signing and advise on any ancillary steps such as recording or coordinating with estate planning documents.
Step 3: Implementation and Follow Up
After signing, we advise on implementation steps like updating insurance, reviewing mortgage documents, notifying relevant parties, and recording any required notices. We can also assist in coordinating the agreement with estate planning documents to ensure consistent transition instructions. Periodic review is recommended so the agreement continues to reflect owners evolving goals and circumstances. Follow up support helps maintain the usefulness of the agreement and address amendments when life changes occur.
Coordinate Related Documents
We review related estate planning documents and title instruments to ensure the co-ownership agreement aligns with wills, trusts, and powers of attorney. This coordination avoids conflicting directives and smooths ownership transitions. When adjustments are needed, we recommend precise revisions so all documents work together to achieve the owners intentions and minimize future disputes.
Provide Ongoing Support and Amendments
As circumstances change, owners may need amendments to reflect new financial arrangements, changes in occupancy, or transfers of interest. We provide guidance on amending the agreement, preparing buyout documents, and handling disputes through negotiation or mediation before litigation. Ongoing support ensures the agreement remains practical and continues to protect the owners interests over time.
Frequently Asked Questions About Co-Ownership Agreements
What is a co-ownership agreement and why do I need one in Red Bank?
A co-ownership agreement is a contract among property owners that sets out how they will share rights, responsibilities, and proceeds related to a shared property. It covers topics such as ownership percentages, expense sharing, decision making thresholds, maintenance duties, and transfer rules. Having an agreement is especially helpful in Red Bank because it replaces assumptions with clear procedures, reducing the risk of disputes and providing predictable outcomes for routine management and unexpected events. When parties have clear expectations in writing, they can avoid costly disagreements that arise from differing interpretations of informal arrangements. The agreement can also provide buyout formulas and dispute resolution steps that make transitions smoother if one owner wants to exit. This clarity helps protect the property value and preserves relationships among co-owners.
How are expenses and repairs typically divided among co-owners?
Expense and repair divisions are commonly based on ownership percentages, but parties can agree to other arrangements that reflect usage or prior contributions. A co-ownership agreement should specify which expenses are considered routine operations, which are capital improvements, and how emergency repairs are funded. Defining these categories in advance reduces disputes about what qualifies for shared funding and what requires separate approval. It is important to include procedures for documenting expenses, timelines for payment, and remedies for nonpayment. These provisions might include interest on overdue amounts, the right to lien or seek reimbursement, and steps for resolving disagreements through negotiation or mediation. Clear processes prevent small issues from escalating into larger conflicts among co-owners.
What should a buyout clause include to be effective?
An effective buyout clause defines how the departing owner will be valued and sets a process for completing the purchase. Common elements include the valuation method, such as appraisal or fixed formula, timelines for conducting the valuation, notice requirements, and payment terms or financing expectations. The clause should also provide fallback procedures if parties cannot agree on value or funding, such as an appraisal panel or staged buyout. Including a buyout clause reduces uncertainty and provides an orderly exit path that minimizes disruption to the property and remaining owners. Clear timelines and funding mechanisms increase the likelihood that the buyout will be completed without prolonged disagreement, protecting investment value for everyone involved.
Can a co-ownership agreement control what happens if an owner dies?
A co-ownership agreement can include terms that govern what happens when an owner dies, such as rights of first refusal for co-owners, buyout triggers, or restrictions on transferring interests to heirs. While the agreement cannot override certain estate law rights, it can coordinate with wills and trusts to ensure that transfers align with the owners intentions. Clear provisions help avoid surprise transfers that could bring in unwanted co-owners or change the management dynamic. Coordinating the agreement with estate planning documents is recommended so the overall plan is consistent. This coordination helps ensure that heirs understand their rights and any obligations before inheriting an interest, making transitions smoother and helping preserve the property value for surviving co-owners.
Is mediation or arbitration better for resolving co-ownership disputes?
Mediation is often a practical first step because it is less adversarial and can preserve relationships by facilitating negotiated solutions. Arbitration provides a binding resolution that can be faster and more private than court, though it may involve higher upfront costs. The choice depends on the owners tolerance for formal processes and desire for finality. Many agreements require mediation first and allow arbitration if mediation fails, balancing the benefits of both approaches. Including a tiered dispute resolution clause helps parties attempt cooperative problem solving before resorting to a binding process. This approach encourages resolution at lower cost and preserves options for a final decision if needed, making it easier to resolve conflicts without prolonged litigation.
How do I change or amend a co-ownership agreement later?
Amendments to a co-ownership agreement should follow the procedures set out in the agreement itself, which often require written consent of all owners or a specified majority. The agreement should describe how amendments are proposed, how notice is given, and what voting thresholds are necessary to effect changes. Clear amendment procedures prevent disputes about whether a change is valid and ensure that everyone understands the process for updating terms. When significant circumstances change, such as a new owner joining or a major renovation, timely amendments help keep the agreement current. Consulting counsel to draft amendments ensures new language integrates cleanly with existing clauses and maintains enforceability under Tennessee law.
Should a co-ownership agreement be recorded with county records?
Recording a co-ownership agreement with county records is not always required, but in some cases public filing can provide notice to third parties and protect rights vis a vis creditors or subsequent purchasers. Whether to record depends on the content of the agreement and the parties objectives. Recording can make certain provisions more visible and prevent claims of ignorance by third parties, but it also makes the terms public. Before recording, owners should consider confidentiality concerns and coordinate with title documents and lenders. Counsel can advise whether recording is advisable given the agreement provisions and local recording practices in Hamilton County.
How does a co-ownership agreement interact with estate planning documents?
A co-ownership agreement should be coordinated with wills, trusts, and powers of attorney so that transfers of interest on death or incapacity operate as intended. Without coordination, an heir could inherit a share that triggers unwanted changes in ownership or management. By aligning the agreement with estate planning, owners can specify whether interests pass to heirs or are subject to buyout or right of first refusal by co-owners. Counsel can help ensure that estate documents reference the co-ownership agreement where appropriate and that beneficiary designations and title ownership forms work together to avoid unintended outcomes, making transitions smoother for surviving owners and heirs.
What happens if one owner fails to contribute their share of expenses?
If an owner fails to contribute their share of expenses, a co-ownership agreement should set out remedies such as notice requirements, late fees, lien rights, or steps toward forced sale or buyout. The agreement can also allow remaining owners to make up payments and seek reimbursement. Clear remedies reduce uncertainty and provide a path to resolve financial default without immediate litigation. Enforcement options must be balanced to avoid unduly harsh results while protecting the financial stability of the property. Mediation or negotiation before aggressive enforcement often preserves relationships while ensuring that obligations are addressed promptly and fairly.
How much does it cost to prepare a customized co-ownership agreement?
The cost to prepare a customized co-ownership agreement varies based on complexity, number of owners, and whether negotiation or integration with estate planning is required. A simple short form agreement for closely aligned owners will typically be less costly than a comprehensive agreement for multiple investors that includes appraisal and buyout mechanisms. Fees also reflect the time needed to coordinate with title, mortgage, or estate documents. During an initial consultation, the firm outlines likely tasks and a fee estimate based on the owners objectives. Clear budgeting helps owners decide on an appropriate level of detail and whether phased work, such as starting with a simple agreement and expanding later, makes sense for their situation.