I moved up to an H376 last July and the sailor I sold my old boat to has approached me about wanting to be partner/owner, 50/50. I've never been one to share my toys but after thinking about it for a while it's starting to make sense. Question is I'm not sure how to go about it since I've got the loan in my name. What I'm looking for is advice on to go about this, do I get him to pay half of my original down payment, ...etc Thanks
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Belly up to the bar
Since you mentioned not liking to share toys (and there is a lot to be said for that), I would first carefully list the Pros/Cons. If after all the soul searching is over, I or an attorney would carefully craft a partnership agreement spelling out all conditions. Some thoughts - dates/times of use; notice of time not to be used by one for the other to take; all costs including buy in, dockage, maintenance, damage, etc.; resolution mechanism for disputes that may arise; termination agreements (when, how, fair market value determination, etc.); It's like getting married with a prenupt! Good luck.
Since you mentioned not liking to share toys (and there is a lot to be said for that), I would first carefully list the Pros/Cons. If after all the soul searching is over, I or an attorney would carefully craft a partnership agreement spelling out all conditions. Some thoughts - dates/times of use; notice of time not to be used by one for the other to take; all costs including buy in, dockage, maintenance, damage, etc.; resolution mechanism for disputes that may arise; termination agreements (when, how, fair market value determination, etc.); It's like getting married with a prenupt! Good luck.
DON'Tt do it !!!
Sha ring a boat is like worse than sharing your wife. Your boat can't defend herself when you are not around... Not all awners are equally meticulous maintaining the boat. And when something has to be fixed, you are asking for a lot of problems. Did't you say that the person ofering you a partnership has already bought a boat, your old one? So tell him/her to take care of his toy, and you will take care of yours. If the cost of owning a 37 footer is to much for you, than perhaps you should consider going smaller? Just na experienced word of advise! Good luck!
Sha ring a boat is like worse than sharing your wife. Your boat can't defend herself when you are not around... Not all awners are equally meticulous maintaining the boat. And when something has to be fixed, you are asking for a lot of problems. Did't you say that the person ofering you a partnership has already bought a boat, your old one? So tell him/her to take care of his toy, and you will take care of yours. If the cost of owning a 37 footer is to much for you, than perhaps you should consider going smaller? Just na experienced word of advise! Good luck!
Protect Yourself
Wow, I have a close friend that did the exact same thing… He and his wife partnered with another couple (Friends) on a 37.5 a few years back. After a couple of good years they started to become annoyed at each other. They started noticing thing getting broke and having to fix them, personal items were being used and taken without notification from the other party. Blah blah blah…. The topper was when the other couple decided to get a divorce; all assets were frozen, even though the one side offered to buyout the other. The attorney was successful in preventing the sale. The wife of the divorcing couple has a citizenship in another country and even her own lawyer is having difficulties in contacting her. My friend was been paying for all the slip fee’s, boat loan (to protect his interest) and maintenance costs and will eventually win through the reimbursement fee’s alone but not without many sleepless nights and no time soon. These stories go on and on and on…. Be sure you know what’s involved and cover all of you bases and then pray hard that nothing goes wrong. Regards
Wow, I have a close friend that did the exact same thing… He and his wife partnered with another couple (Friends) on a 37.5 a few years back. After a couple of good years they started to become annoyed at each other. They started noticing thing getting broke and having to fix them, personal items were being used and taken without notification from the other party. Blah blah blah…. The topper was when the other couple decided to get a divorce; all assets were frozen, even though the one side offered to buyout the other. The attorney was successful in preventing the sale. The wife of the divorcing couple has a citizenship in another country and even her own lawyer is having difficulties in contacting her. My friend was been paying for all the slip fee’s, boat loan (to protect his interest) and maintenance costs and will eventually win through the reimbursement fee’s alone but not without many sleepless nights and no time soon. These stories go on and on and on…. Be sure you know what’s involved and cover all of you bases and then pray hard that nothing goes wrong. Regards
Make sure partner has $$$ and responsible
First I agree with AndreK 100%. In any business, partners are a risk for disaster, so if you can own alone.... get smaller boat. That said, if you are going to have a partner make sure they have $$$, responsible, financially stable, clean, have similar plans/goals for your boat. Selecting a proper partners is more important than anything you will put in writing...Sure, get your written agreements (how are maintaince costs shared, how to get out of the partnership, how are you going to determine value of boat..). But remember, no contract is going to help when your partner is in bankrupcy and flat broke. good luck abe
First I agree with AndreK 100%. In any business, partners are a risk for disaster, so if you can own alone.... get smaller boat. That said, if you are going to have a partner make sure they have $$$, responsible, financially stable, clean, have similar plans/goals for your boat. Selecting a proper partners is more important than anything you will put in writing...Sure, get your written agreements (how are maintaince costs shared, how to get out of the partnership, how are you going to determine value of boat..). But remember, no contract is going to help when your partner is in bankrupcy and flat broke. good luck abe
I disagree
I have a 50/50 boat partner. And yes he does things differently than I would at times, but I have learned to not let the small stuff get in the way. Both he and his wife are very close friends, we are both financially capable of owning our own boat, and we find this arrangement very good. First off it cuts the cost of ownership in half. Secondly, since we live in AZ and commute to San Diego to sail, it eliminates the guilty feeling when you own a WHOLE boat and cant get out to use it. Alot of times we go out together too. With the right partners it can work well. We alternate weeks throughout the year, wednsday thru tuesday. One takes even wednsady the other odd. Works fine.
I have a 50/50 boat partner. And yes he does things differently than I would at times, but I have learned to not let the small stuff get in the way. Both he and his wife are very close friends, we are both financially capable of owning our own boat, and we find this arrangement very good. First off it cuts the cost of ownership in half. Secondly, since we live in AZ and commute to San Diego to sail, it eliminates the guilty feeling when you own a WHOLE boat and cant get out to use it. Alot of times we go out together too. With the right partners it can work well. We alternate weeks throughout the year, wednsday thru tuesday. One takes even wednsady the other odd. Works fine.
One more thing ...
... my partner talked to a neighbor, an attorny, who said that getting out of the partnership is the issue. Our agreement is simple 50/50 on all boat items. But we spelled out how the partnership could be dissolved.
... my partner talked to a neighbor, an attorny, who said that getting out of the partnership is the issue. Our agreement is simple 50/50 on all boat items. But we spelled out how the partnership could be dissolved.
questions....
1) who uses the boat, and when? what about holidays? what about vacations? 2) if something breaks, who pays? the person who breaks it, or both? what if it happens due to neglect? or accident? 3) how does one get out of the partnership? buy out at original price? or appreciated? there are probably many more, but these are enough to sway me against.
1) who uses the boat, and when? what about holidays? what about vacations? 2) if something breaks, who pays? the person who breaks it, or both? what if it happens due to neglect? or accident? 3) how does one get out of the partnership? buy out at original price? or appreciated? there are probably many more, but these are enough to sway me against.
Unforeseen
I'm not too sure that because 2 parties are financially capable they won't have issue's. As in the case of a divorce, assets become frozen and this may sometimes cause the other couple to pay all the expenses including any boat loan (in full)for a while as in the case of our friends who are currently in this same exact perdicament. As far as the guilt for (owning the whole boat) not using the boat as often, who experiences that guilt?
I'm not too sure that because 2 parties are financially capable they won't have issue's. As in the case of a divorce, assets become frozen and this may sometimes cause the other couple to pay all the expenses including any boat loan (in full)for a while as in the case of our friends who are currently in this same exact perdicament. As far as the guilt for (owning the whole boat) not using the boat as often, who experiences that guilt?
Disagree still.
Usually share holidays, or sometime we rotate. As far as $$, no loan paid cash. The marina splits the monthly fees and charges each of our credit cards. Other costs like insurance, maintenence are paid from a joint checking account we each deposit into. As far as damage and who,pays, hasnt been an issue. Any negligent damage is assumed by the responsible party.But keep in mind, we are both self employed in the same business and great friends. 50% of the time we're over in San Diego together (its cheaper to fly over and go sailing than it is to play golf in Phoenix!). So considering my situation it works great.
Usually share holidays, or sometime we rotate. As far as $$, no loan paid cash. The marina splits the monthly fees and charges each of our credit cards. Other costs like insurance, maintenence are paid from a joint checking account we each deposit into. As far as damage and who,pays, hasnt been an issue. Any negligent damage is assumed by the responsible party.But keep in mind, we are both self employed in the same business and great friends. 50% of the time we're over in San Diego together (its cheaper to fly over and go sailing than it is to play golf in Phoenix!). So considering my situation it works great.
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