boat partners

[russell]

thoughts and suggestions re: partnership on a cd 27 between a very busy self-employed professional with lots of experience but never an owner and a semi-retired current owner who doesn't anticpate using the boat excessively and has suggested partnership. current owner new to sailing and i've been giving instruction. current owner will be out of town somewhat and needs to live aboard for 2 months.



rdunncpa@cpafla.com

[M. R. Bober]

Many boat partnerships run into trouble. Be sure that both of you understand the scheduled usage of the boat, cost of maintenance, responsibility for damages, how partnership will be terminated (residual value), etc.

A boat is--as you will discover--an extremely PERSONAL possesion. A current owner selling a half interest may not always remember the existence of the partner.

On the other hand, my father & his business partner co-owned several boats over a span of many years with minor friction. However they had been partners BEFORE they bought a boat.

Be careful. Know what you're getting into, and remember all boat owners are either crazy or will be from time to time.
Mitchell Bober
RESPITE
CD330

[Joe Cioffi]

thoughts and suggestions re: partnership on a cd 27 between a very busy self-employed professional with lots of experience but never an owner and a semi-retired current owner who doesn't anticpate using the boat excessively and has suggested partnership. current owner new to sailing and i've been giving instruction. current owner will be out of town somewhat and needs to live aboard for 2 months.

Only a couple of words of WISDOM and I learned that you only get wisdom from going though it your self.
One partner will use the boat and the other will pay the exspences!



JGC2@PRODIGY.NET

[John R.]

thoughts and suggestions re: partnership on a cd 27 between a very busy self-employed professional with lots of experience but never an owner and a semi-retired current owner who doesn't anticpate using the boat excessively and has suggested partnership. current owner new to sailing and i've been giving instruction. current owner will be out of town somewhat and needs to live aboard for 2 months.

In the past I've had two partnership deals. From my experience with both of them most minor disagreements can be worked out. However when it comes to $$$$$$$$$$$$ disagreements that is where the "S" starts to really hit the fan.

If I could only make one highly advised point it is this: Get everything in writting, absolutely everything you can possibly think of. The adage of dotting every "i" and crossing every "t" can't be emphasized enough. It will afford you both peace of mind and resolve most if any conflicts quite readily if well written and comprehensive in nature.

Divide everything 50/50 on all of the following:

1)ownership

2)labor (all types)

3)usage (all types)

4)maintenance costs (all types)

5)insurance

6)licenses and registrations

Be sure there is a clause in your agreement that protects each of you in the event something should happen to either of you. There should be a buyout clause or a right of survivorship of some type.

Make sure each partner is free of asset leins and sign a statement to that effect.

Just cover all potential pitfalls. Always discuss matters in a "we" context rather than an "I" context. Agree that friendship comes before all else. Decide and agree what will happen if either of you wants out and what procedure will have to be implemented to do so.

Have everything notarized.

Keep an accurate ledger accounting for all $$. Maintain a labor log. Keep an accurate ships log. Maintain a ships bank account. Log every receipt and safeguard all the originals. Note "reason" on every receipt. Document all work performed on vessel with captioned photos.

Try and formulate a "future" plan (a picture of both your situations) that both of you can live with in regard to what you both desire to see occur with the boat down the road.

This discussion can go on and on covering all sorts of details that need to be accounted for in your initial agreement. Just try and imagine any possible ugly scenario developing and try and account for it well in advance. You've already done a smart thing by seeking comments from others that have already travelled down this road.

I've seen a few partnerships go very well and some that turned into disasters. There is really only one good rule.....just be sure and protect yourself and don't expect your partner to love the vessel as much as you. Take a level headed approach to the entire situation. Don't get your expectations too high and don't be overly cynical.

Good luck and follow your gut instinct tempered with some common sense.