Boat partnership agreements???

**Aarons01** · 05-04-2006, 08:25 AM

RE: Boat partnership agreements???

dont do it

**scottrob** · 05-04-2006, 08:33 AM

RE: Boat partnership agreements???

agreed - NO WAY!

I did it 9 years ago - makes sense right? Need two people to ski, so why not?

Well, generally there is contention when you get busy and one uses boat more than the other, someone doesn't take care of it as much as the other, vacation conflicts, etc.

Simply not worth it. Much better to have it be your boat OR his/hers and the other person just come along for the ride.

To let you in on it, I started traveling some with my job, the other guy really did not take good care of it and in fact was out in placed I NEVER would have gone and he hit a stump and that was that. Never again.

**FatBoy** · 05-04-2006, 08:41 AM

RE: Boat partnership agreements???

Just don't do it.

**Brad_K** · 05-04-2006, 01:01 PM

RE: Boat partnership agreements???

I would not recommend it either, when i brought mine i brought it with a friend, all was agreed and so i went to collect it and pay for it to be reimbursed when we next met. When i got it home i phoned him to let him know it was here so he could come and have a look but he said he could no longer afford it due work commitments and so i was left to try and find his share. It was not a new boat and so where are not talking 10's of thousands but still it was money i had to find.

I would suggest getting your own boat that is half as expensive, what happens if one of you are out without the other one and forgets to check the oil, or assumes the other guy does that and seizes the engine, who pays?

**Flux** · 05-04-2006, 01:45 PM

RE: Boat partnership agreements???

It can work fine, but I definately realize other people's hesitations and bad experiences. It really depends on the people involved. The guy who introduced me to boarding had a 92 Sport. I always helped him with the maintenance and got gear for the boat and things like that. As I really got into it, it became clear that we would never be satisfied until we had a Super Air.

So one came up, we took out a loan together, and purchased the boat. He sold his and paid off his share, so it's really up to me now and I have about a year left till we get the title. I tend to do some of the little things to it on my own, but when it's time to detail it and maintain it, it's a group effort. The nice thing is we split insurance and maintenance down the middle so it's cheaper all around. Nobody ever feels like they are supporting the boat and the fun by themselves. I don't think we would ever have a problem with co-owning.

Both names are on everything, so to me that's a legal enough contract. I have heard of others who had a joint checking account and both made monthly contributions so they always had cash for maintenance and upgrades. If your contract goes beyond legal ownership, insurance, and maybe upkeep monies, then I would say that it's a bad idea. If you have to have a contract on who uses the boat and when and how and all of that, then don't do it because that is really not what it is about. We have always used the boat together, but I would never have a problem otherwise. If the boat got messed up when I was not around due to an accident, then it was an accident and that is what insurance is for. If it had a mechanical failure, then we deal with it because it probably would have happened if I was there or not.

Co-ownership can work just fine. I own half of a boat I could not afford on my own, so we help each other to have a nicer boat, keep it maintained and make it financially viable for everyone. It's our investment in fun, but you have to make sure that your goals are the same. We both just wanna get to the glass and have a sweet ride that kicks out a great wake, because we have like minds on that, the money thing is easy.

i should also mention that the guy I co-own with is a competent boater and would never beat on it. We maintain it together so he knows everything that is going on with it mechanically. He would also not hesitate to shut it down and bring it home if he thought it was running bad and there might be a problem. Accidents happen, heck, I was the one who grounded the prop last weekend so maybe I am the bad partner??

**SGY** · 05-04-2006, 01:53 PM

RE: Boat partnership agreements???

With my first boat, we shared the cost and expenses with my wife's family. It worked for the first year and one-half. The wife's family lost interest in the boat and wanted to sell it. I said, uhhh, no. Now I pay all the expenses and will be hard pressed to pay anyone any money if and when I sell the boat and don't replace it. Bottom line, absent the hardcore folks, people sooner or later loose interest.

I'm not going to say don't do it--but it does complicate things. And, if you can't afford a boat without sharing, then make sure things are spelled out in writing. At a minimum, I'd agree, up front, to the minimum duration that you two will keep the boat together. When that time comes, then you two can agree to an extension, trade in, or sale. If someone wants out prior to the agreed upon deadline, they don't have to share in expenses but one-half of expenses incurred from then on would be deducted from their half of the resale capture at the deadline. Also, agree that no matter what happens to the boat, you two will agree to split the cost of repairs. Accidents happen and things break.

Complicated, isn't it. That suggests only sharing a boat if that's the only way you can afford one.

**SGY** · 05-04-2006, 01:58 PM

Re: RE: Boat partnership agreements???

Originally posted by Flux

Accidents happen, heck, I was the one who grounded the prop last weekend so maybe I am the bad partner??

Reminds me of the saying that "every family has a black sheep, if you think that your family doesn't have one, then you're the black sheep." :grin:

**Dr.John** · 05-04-2006, 03:51 PM

Thanks for the comments! :grin:
In this case I think we are both pretty concientious, neither of us are out that many times a year (last year 30 hrs). Hard to justify the expense on 15 to 20 trips to the lake a year.
I was looking for contractual words to constuct an agreement.

**MARK-S** · 05-04-2006, 03:55 PM

My first CC was a 78 Ski Tique. Paid 5K with my buddy. He wanted out when he got engaged. I bought him out for 2K. I ran the boat for 3 more years and then sold it for $5,500. Worked for me.

**AirNautique211** · 05-04-2006, 07:53 PM

15 or 20 times a year - holy cow - I would love to get out 15-20 times.

I have to agree on the partner thing. I have 2 friends - one Dr. and one CPA - and they nearly killed eachother over a deal like this. They don't speak to this day and they are both great people.

If you are going to tdo it definitely initiate a written agreement or don't do it. Also, do't expect everything to go well when developing a plan. The plan should be developed for the worst case, not the best.

**darrel409** · 05-04-2006, 08:17 PM

My friend has a partnership with his brother in their airplane. These partnerships are more common because of the maintenance fees, engine rebuilds, and cost of a plane. He told me there are many books on the pros and cons of shared ownership. It helped them answer a lot of questions and solve a lot of problems before they happened. I would recc. reading up on it and most had sample contracts.
Things that in the begining are no big deal over time can become problematic. Where will the boat be stored, if its at his house does he get paid for storage? If he needs to sell next year because of injury, marriage, money trouble do you have to buy it?, sell it?, who's price? What about use? If one wants to take boat out of town and the other wants to take it somewhere else whos weekend? What if you are soposed to leave the fuel topped off and the partner seems to forget often? Will there be a loan? what if one guys half is paid off and the partner doesnt make payments or isnt paying his share?
It seems like it would be a simple deal to share a boat, and it can be if especially if its a low price boat. When they cost $20K, $30K, $40K...its not so simple. Money can sometimes drive a nasty wedge between friends. Good luck

**redelf75** · 05-05-2006, 10:11 AM

Buy the boat and rent it out. This way, you retain ownership and can maintain (or not) the boat as you wish. Guests will pay for rights to use it and the money can go to financing the boat and/or maintenance. Say $4000/season? That'll give you a commitment you can bank on, litterly.

**Bullet** · 05-05-2006, 11:25 AM

i did it on 2 different boats----works fine if you are adults about it

it is nice to have someone to split the bills with---might be tought for 2 family guys with kids and wifes--just too many possible issues

**steelerguy** · 05-05-2006, 11:58 AM

I split ownership with my wifes cousin. We were both hooked on boating/ wakeboarding/ skysking. We bought a 1985 ski supreme. Split everything down the middle. 5500 was the loan we took for 4yrs. 2yrs later I hit the lottery 100,000.00 and paid the boat off. We sold the boat and bought a 90 sport nautique. I asked him to get in with me again and he said he couldnt. He did not get any off the $$$ from the sale of the boat as I put it all towards the new boat. he was fine with that since he now gets to ride in a newer better boat with any payments. He still helps out with gas and such but it was nice splitting insurance, and maintance cost.

If I had to do it again I would but keep in mind boat payments last a long time, friendships sometimes dont.

Boat partnership agreements???

Boat partnership agreements???

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