Valuing a co-ownership share in residential property is often the central question in the division of family relationships, inheritance or a joint investment. The Georgian Civil Code regulates common ownership within a clear framework: common ownership — both joint and shared — arises by force of law or on the basis of a transaction. Each co-owner may present claims to third parties in respect of property held in common ownership, although the right to reclaim a thing belongs to each co-owner only for the benefit of all co-owners. The correct determination of the share's value decides what each participant receives on division, how fair the compensation is and how the proceeds of a sale are distributed.
Equality of Shares and the Rules of Disposal
Unless specially otherwise provided, each participant owns an equal share — the general rule from which the starting basis of valuation follows: with two participants, each share is half the value of the object. Each participant may dispose of their own share, while the common object may be disposed of only jointly. On the sale of a share, the remaining participants' right of pre-emptive purchase may be determined by agreement of the parties, unless Georgian legislation directly provides otherwise. The costs of maintaining and preserving an item held in common ownership are also borne by the co-owners equally, unless law or contract provides otherwise, and the pledging or other encumbering of the item is possible only by agreement of the co-owners.