My partner and I are unmarried and just purchased our first sailboat together. For a variety of reasons, we want a joint ownership agreement. We will document the ownership, how and who pays for expenses and what should occur if we dissolve our relationship. I have found some old posts out there but no agreement yet. Thanks for any help!
Joint Ownership Agreement
- Thread starter Laura 77
- Start date
For what these go for it hardly seems worth the trouble. You should just decide now who gets it if you break up, and split expenses now, or until then. As many lawyers will tell you, "stay out of expensive joints."
Easy. They get the dog, you keep the boat! 
Will this be an expensive boat? I agree with jviss' comments.
Will this be an expensive boat? I agree with jviss' comments.
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Justsomeguy-lots of sites you have to register, sometimes join for a trial membership including that one you provided-already looked at it. was hoping someone had something helpful
Hmm. Says "free".
[Shrugs shoulders]
Be your own lawyers and write it up yourselves.
Ah, love.
Each joint ownership agreement will be unique to each partnership. Too many variables in partnerships to have a boilerplate agreement.
The people I know who have a partnership form an LLC and have a separate bank account. Within the LLC the roles of the partners and the dissolution of the LLC can be specified. Lots of factors to consider when drawing up the agreement. From who does what to who decides what to funding the boat. Probably one of the most difficult issues will be assessing value in the event of a dissolution. Can one partner buy out the other? If it goes on the market, who gets to make the decision on the selling price? And so on.
The people I know who have a partnership form an LLC and have a separate bank account. Within the LLC the roles of the partners and the dissolution of the LLC can be specified. Lots of factors to consider when drawing up the agreement. From who does what to who decides what to funding the boat. Probably one of the most difficult issues will be assessing value in the event of a dissolution. Can one partner buy out the other? If it goes on the market, who gets to make the decision on the selling price? And so on.
That's the word to use to search ^^^^
Not so hard, here or any other boating forum.
Good luck.
Since 1981 when we bought the J24 until this minute, my wife reminds me that my half of the boat is below the waterline!
I'm a retired attorney not in your jurisdiction so here's some free advise, it's probably worth what your paying for it (lol). Agreements such as the one you're looking for are governed by State law; 50 states 50 different potential outcomes. If you want a bullet proof agreement it must be tailored for your particular state, in addition there maybe other factors specific to your situation that could affect the enforceability of the agreement.
All of that being said instead of trying to draw up a(n) (enforceable) contract I would write a memorandum of agreement. Simply state the purchase price of the boat and who contributed what. State who pays for maintenance and repairs and other expenses. Once you have laid all of that out state it is your intentions that upon termination of the relationship X will get ____ and Y will get _____. Only you can fill in those blanks. In determining what to put in you may want to consider if you both paid equal amount for the purchase but X spent the same amount in repairs that X should should get a large percentage of the sale proceeds. You should also put in a buy/sell provision that you agree that one party can buy the other out (I would put in a predetermined amount). Don't get the idea this will be a bullet proof contract, it's just what you both want to happen and most family courts will look at it the same way and try to carry out your intentions. If this is a substantial asset please spend a few hundred dollars for an hour consultation with a local family law attorney and get some advise, the same applies to when you acquire more substantial assets.
All of that being said instead of trying to draw up a(n) (enforceable) contract I would write a memorandum of agreement. Simply state the purchase price of the boat and who contributed what. State who pays for maintenance and repairs and other expenses. Once you have laid all of that out state it is your intentions that upon termination of the relationship X will get ____ and Y will get _____. Only you can fill in those blanks. In determining what to put in you may want to consider if you both paid equal amount for the purchase but X spent the same amount in repairs that X should should get a large percentage of the sale proceeds. You should also put in a buy/sell provision that you agree that one party can buy the other out (I would put in a predetermined amount). Don't get the idea this will be a bullet proof contract, it's just what you both want to happen and most family courts will look at it the same way and try to carry out your intentions. If this is a substantial asset please spend a few hundred dollars for an hour consultation with a local family law attorney and get some advise, the same applies to when you acquire more substantial assets.
In my "state" (married). What's her's is her's and what's mine in her's! My wife reminds me of that every once in awhile.Seriously though, I'd follow @reworb's suggestion. Even with a contract there are so many things that can probably "breach" that contract that you'd probably have a hard time enforcing it even if you tried. If you agreed that one person paid 75% of the cost and the other 25% but the person who paid 25% was to put in 75% of the "sweat equity" in the maintenance who gets to decide how that is carried out. Are you going to keep a work log? Are you going to have a ledger of every expense you pay? That will suck the joy out of having a boat. Heck, even if you don't have a contract to enforce it might just suck the joy out of sailing.
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As a practicing lawyer (not in your state) the first question I would ask is how much the boat is worth. The more it is worth the more likely it is you should spend the money on a lawyer for an agreement. Litigation is much more expensive than preparing an agreement. If you aren’t willing to walk away if things go bad spend the money on an agreement.
You can try to use the "dollar buy out" method in the MOU (memorandum of understanding) mentioned above. Either party has the option to buy the other out for $1 above the valid written offer for the boat by an "arms-length" buyer. Given you aren't married it would worthwhile to take title as Joint Tenants with Right of survivorship. Upon the death of one of the owners, the other gets the boat in entirety. You wouldn't have to deal with your partner's heirs wanting the other half.
I had a boat partner (A friend) on my Hunter 280 and then my O’Day 322. Both boats valued under $30k.
We registered the boat as co-owners, and had a 1-page agreement (not even sure if we sighed it...but we used it to go over expectations) that outlined how we were sharing costs, agreeing to upgrades, and what happened if one of the owners wanted out of the partnership.
We shared routine costs 50/50, and shared the boat the same. We ever had an issue with scheduling. If we needed to replace something (we replaced VHF, bought a Mack Pack and a winter cover, etc.) and discussed before we spent any money.
Eventually my friend wanted out....and I had to decide to either keep the boat and pay him 50% of the purchase price (we did not add in the upgrade costs) or we would sell the boat and split whatever proceeds we got.
I debated using the opportunity to sell, and “upgrade”, but I like the boat, and didn’t really see much in the same price range I would rather have. So I bought out his share and it was done.
The funniest part of the story is that while we co-owned the Hunter, my dream boat came available. My wife was dead set against buying it until we sold the Hunter...but my partner and his wife were all in favor...so we out voted my wife. She forgave me a few months later when I sold the Hunter. Without the partnership, I may never have got my dream boat!
We did not have a loan, which made things easier. And we are still friends!
I guess we got lucky.
Greg
We registered the boat as co-owners, and had a 1-page agreement (not even sure if we sighed it...but we used it to go over expectations) that outlined how we were sharing costs, agreeing to upgrades, and what happened if one of the owners wanted out of the partnership.
We shared routine costs 50/50, and shared the boat the same. We ever had an issue with scheduling. If we needed to replace something (we replaced VHF, bought a Mack Pack and a winter cover, etc.) and discussed before we spent any money.
Eventually my friend wanted out....and I had to decide to either keep the boat and pay him 50% of the purchase price (we did not add in the upgrade costs) or we would sell the boat and split whatever proceeds we got.
I debated using the opportunity to sell, and “upgrade”, but I like the boat, and didn’t really see much in the same price range I would rather have. So I bought out his share and it was done.
The funniest part of the story is that while we co-owned the Hunter, my dream boat came available. My wife was dead set against buying it until we sold the Hunter...but my partner and his wife were all in favor...so we out voted my wife. She forgave me a few months later when I sold the Hunter
. Without the partnership, I may never have got my dream boat!We did not have a loan, which made things easier. And we are still friends!
I guess we got lucky.
Greg