Partnership

Mar 27, 2017
7
Hunter Hunter 27 Rockport
Surprisingly since retirement two years ago my wife and I sail less than when I was working mostly due to other travel. Since we live in the northeast the sailing season is short we have reached the economic point of to sail or not to sail. An option of selling is taking on a partner which we have discussed and actually have another couple who would consider sharing expenses. As I thought about it I realized there are many things to consider.
Here are my thoughts:
I would retain complete ownership of the boat, no buy in required. Payments would only be 50% of the "normal" maintenance: Boat in and out, winter storage, mooring fee and maintenance, etc.
I have not committed to this yet and would like some feed back on how to make this work. Specifically what type of agreement should be written? Does it require a lawyer? What else should be considered? Thanks.
Regards
BF
 

Kermit

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Jul 31, 2010
5,657
AquaCat 12.5 17342 Wateree Lake, SC
You'll eventually get someone here to tell you how well it worked for them. And how they did it. My first thought is that will reduce your available sailing days even more.
 
Oct 6, 2007
1,023
Hunter H30 1982 Chicago IL
Sounds like it leaves you with half as many available sailing days, but possibly all the maintenance work. Is that worth it to you to halve your expenses?
 

Reg M

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May 21, 2016
131
Hunter 31 Montague
I have seen quite a few partnerships in the boating world and almost all of them eventually made at least one of the partners involved realize that when it comes to boats a "partnership" winds up in a "sinking ship". I don't mean to say all these boats sank, just that it usually winds up with those situations like: I thought .... and the other party says: I thought.... and neither party thought the same thing. And then you get to maintenance, I don't know about you but I don't think anybody is going to maintain my boat like me and it is very difficult to motivate someone to put a lot of effort into working on a boat they don't own. You may get lucky and find just the right person but I think the odds are against it. Just my humble opinion.
 

SG

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Feb 11, 2017
1,670
J/Boat J/160 Annapolis
I think that beyond the usage issues, the key factor about the success or failure of such an arrangement depends on the nature of the "partner(s)" you're taking on.

Then there are the issues of what the boat means to you (not only economically, but emotionally).
 
Jul 27, 2011
4,989
Bavaria 38E Alamitos Bay
Without an equity interest in the boat the new couple might "tire" of the arrangement and opt out b/f too long. After all, they have nothing vested or invested--so, it's something easy to walk away from, and you're back where you started a year or so ago, etc. I understand. It's tough to let go of that thing you love to have, and love to do. You want to hold on to it but at lower cost and lower level of commitment. However, IMHO--that's likely a weak foundation for a boat partnership. Better to recommit yourself to the activity for a while longer.;)
 
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Jun 21, 2004
2,532
Beneteau 343 Slidell, LA
I am not going to weigh in regarding the pros /cons of a partnership. Be careful with insurance & liability issues; and yes, definitely get an attorney to do this deal. You may be able to find a legal framework on this site or others to work from; however, laws can vary significantly from state to state; therefore, an attorney familiar with maritime law should put the legal agreement together and close the transactIon. All of the expectations, operating rules and expenses, as well as damage responsibility and legal limitation of liability should be spelled out. By doing this transaction properly, you're also letting your prospective partner(s) know that this is a serious business transaction and not just a casual "hand shake" deal.
 
Nov 18, 2013
171
Catalina 310 Campbell River
What I did when I was using a plane was we had a hourly rate that we charged each other that went to the maintenance work. That way who used it the most pays the most. You could do the same but have a daily rate that way if you only use it 2 week and the other uses it 2 months your not paying for their maintenance ie oil change.. just an idea
 
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Gunni

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Mar 16, 2010
5,937
Beneteau 411 Oceanis Annapolis
Option 3: Dry store the boat at a location you frequent and could use the boat to enhance the visit. Dry stored boats require less maintenance and attention. A 27' foot boat could even be stored on a trailer.
 
Sep 23, 2009
1,475
O'Day 34-At Last Rock Hall, Md
I think you are wise to at least consider the option. Most of the boats in any marina sit idle in their slips most of the time. I was going to share a 50% time share of ours for just the cost of summer dockage as I felt the maintenance was part of ownership. However we use it so much there are only some weekdays it sits idle. We have dockmates who have partnered for years and love it. They both have different boat repair skills and will sometimes sail together. Not all partnerships last forever but even still one or more good years with a good partner would be fine. As others have said, the right people make all the difference.
For the legal stuff try "Yachtsman's Legal Guide to Co-Ownership" by Dexter and Paula Odin.
Good luck and fair weather.
 
Jun 21, 2004
2,532
Beneteau 343 Slidell, LA
Forgot a very important aspect of a written partnership agreement. Specify the term (time) of the agreement and make sure that it is very specifically spelled out the circumstances that would result in termination of the agreement. Also detail how the dissolution would occur with regards to money owed, return of damage deposit, etc.
 

HMT2

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Mar 20, 2014
899
Hunter 31 828 Shoreacres, TX
It strikes me that if there is no equity buy in, it is more like a "lease" or a "time/expense sharing agreement" than a partnership. Perhaps approach it in that light on a season by season basis.

I leased a boat for a year for the monthly docking fee from an owner that went on an extended trip. I ended up buying it when the owner made the trip a permanent move. It was a winner winner chicken dinner for everyone!
 
Sep 3, 2012
195
Hunter 285 Grand Rivers Ky
Sounds like a rental or time share and this means your boat would be engaged in commercial activities, whether you make a profit is irrelevant. . The federal government has specific regulations on required equipment, documentation, insurance and liability for this. The insurance policy is totally different. I don't recommend you run afoul if the USCG or sea lawyers. Be really careful, if the contract has any clauses that contradict federal law regarding boat rentals, you could find yourself owing them for any injuries, having a damaged boat, having fines from the Feds for any out of date or non-compliance things, having insurance invalidated AND owing them a full refund for any rent paid plus compensation. Make certain you engage a maritime qualified lawyer. And a state law firm with commercial marine experience.
 
Feb 26, 2004
22,759
Catalina 34 224 Maple Bay, BC, Canada
"Yachtsman's Legal Guide to Co-Ownership" by Dexter and Paula Odin.
How to Share the Use and Expense of a Boat Without Regret

John de Graf, Inc. 1981

You could also do a search here on partnerships, been discussed many times. The key has always been to plan the endgame: what happens if someone wants out?