None of us like to pay for something we can't use. Expensive assets should be there when we need them, but preferably not standing idle or empty when our time is required elsewhere. Fractional ownership offers the opportunity to only pay for the proportion of an asset that you can realistically make good use of.

With fractional ownership, the asset is divided into a number of shares, each of which entitles the owners to an allotted amount of time. For example, a luxury yacht might be divided into quarter shares, meaning there would be four equal owners of the boat. These allocations are often flexible, so you can choose what percentage you'd like to own, and thus how many days/weeks you'd like to use the asset. Some schemes also offer the chance to receive a share of any income generated by the asset and/or to share in the capital appreciation.

Day-to-day servicing and maintenance is generally taken care of by a management company, who are paid a regular fee for this work. This means that the owners do not have spend time and effort looking after the property.

Assets within a fractional ownership program are usually well-maintained, luxury facilities, within which only the best amenities are be found. Such programs normally involve one of three assets.