When two or more related or unrelated individuals or companies own an asset or operate a business of any nature, they either own an undivided interest in the property or they are a partnership. Events such as divorce, death, retirement or disability create different problems for the parties. The Buy and Sell Agreement is necessary to determine what happens after one of these Events occurs or in the event one party wants to sell their interest and "move to Tahiti". Buy and Sell Agreements have five primary goals: (1) To make sure there is a willing buyer with adequate funds when a triggering Event occurs; (2) To prevent Co-Owners from transferring their ownership to others or through a court order in divorce; (3) To determine who is to receive the benefits of payment (i.e.) estate planning for the Seller; (4) To provide greater certainty about the value of the business for estate tax purposes; and (5) To determine whether the Buyer(s) is to have a right of ownership or merely a right of first refusal to buy. In the next article, see: What Are the Types of Buy and Sell Agreements Two or More Parties May Make?