I am about to enter into a partnership owning a Hunter 31 with one other person. I am interested in knowing if there are suggested agreement formats that anyone would be able to share. Just looking for ideas here be sure we have covered the salient points.
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Peggie Hall/Head Mistress
Leave NOTHING to chance...
Partnerships don't come apart because of things like boat payments, dock fees and insurance...they come apart because your defintion of 50% use and your partner's definition aren't quite the same....because your definition of "leave the boat clean" and his aren't the same...because nobody said his teenage son couldn't use it unless one of the partners is aboard...and all kinds of other nitpicking, "you've gotta be kidding" issues that it never occurred to you to discuss. My late husband and I were partners in a boat before we ever even THOUGHT of getting married...we drew up a partneship agreement that our lawyer threatened to frame, but most of the things covered in it were there to keep him from having to "just say no" to his son. If you want a copy, e-mail me and I'll fax it to you. Yes...it's a hoot...but if I were to be a partner in another boat, there's not much I'd change...'cuz when it's ALL in writing, there can't be any of the misunderstandings that not only total a partnership, but destroy a friendship beyond repair.
Partnerships don't come apart because of things like boat payments, dock fees and insurance...they come apart because your defintion of 50% use and your partner's definition aren't quite the same....because your definition of "leave the boat clean" and his aren't the same...because nobody said his teenage son couldn't use it unless one of the partners is aboard...and all kinds of other nitpicking, "you've gotta be kidding" issues that it never occurred to you to discuss. My late husband and I were partners in a boat before we ever even THOUGHT of getting married...we drew up a partneship agreement that our lawyer threatened to frame, but most of the things covered in it were there to keep him from having to "just say no" to his son. If you want a copy, e-mail me and I'll fax it to you. Yes...it's a hoot...but if I were to be a partner in another boat, there's not much I'd change...'cuz when it's ALL in writing, there can't be any of the misunderstandings that not only total a partnership, but destroy a friendship beyond repair.
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TOM MCNAMARA
I ENDED UP BUYING A 38FT TRAWLER IN BEAUTIFUL SHAPE IN 1987 THAT WAS 3 MO OLD BECAUSE THEY HAD NOT DECIDED ON WHICH CABIN BELONGED TO WHOM IT HAD A GREAT AFT CABIN AND A CABIN UP FOWARD THAT YOU WOULD HIT YOUR HINY ON WHEN DOING WHAT COMES NATURALLY. THAT CAN BREAK UP A MARRIAGE. AND OF COURSE IS SHE A BOY OR GIRL
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Jim McCue
Liability Ins.
Youy better check out your limits and provisions on your liabiltity Ins. What mishap he/shew could get you into could cost you big-time. Jim McCue
Youy better check out your limits and provisions on your liabiltity Ins. What mishap he/shew could get you into could cost you big-time. Jim McCue
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Peggie Hall/Head Mistress
Insurance--good point!
Make sure your insurance company recognizes the partnership and include in your partnership agreement who is responsible for any deductable in the event of a claim.
Make sure your insurance company recognizes the partnership and include in your partnership agreement who is responsible for any deductable in the event of a claim.
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Jim Reed
Hey Peggie!
Peggie, Your partnership agreement sounds interesting. Could you send me a copy please? I didn't see your email on your post. my email is: mkreit@hawaii.rr.com Thanks!
Peggie, Your partnership agreement sounds interesting. Could you send me a copy please? I didn't see your email on your post. my email is: mkreit@hawaii.rr.com Thanks!
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Peggie Hall/Head Mistress
I can't e-mail copies of my agreement...
It was written nearly 20 years and at least 4 computers ago. It's long and I'd have to spend a LOT of time correcting my scanner's OCR limitations, so I'l have to fax it. E-mail me a fax # to peghall@bellsouth.net and I'll be glad to send it to you (or anyone else who wants to see it).
It was written nearly 20 years and at least 4 computers ago. It's long and I'd have to spend a LOT of time correcting my scanner's OCR limitations, so I'l have to fax it. E-mail me a fax # to peghall@bellsouth.net and I'll be glad to send it to you (or anyone else who wants to see it).
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Bryan C.
I have an agreement
I have an agreement I made with my partner. If anyone wants a copy email me at BRC@Ferrellschultz.com. My partner is a good pal and we sail together a lot, so our agreement is not detailed on the usage issues -- if someone reserves the boat the other has priority for the next reservation. However, the agreement does cover a number of issues that you should think about before you buy with a partner (actually, a "co-owner" might be better than a partner for legal reasons): What is the partnership going to pay for in terms of berthing, maintenance, repair, upgrades, or improvements; how is the boat owned (e.g. partnership, joint ownership or tenants in common -- can make a difference in the event of death); what happens if one owner wants to sell, gets divorced, dies, or goes bankrupt. These can be thorny issues, but as the others say, better to think them thru now rather than have a problem come up that no one thought about in advance.
I have an agreement I made with my partner. If anyone wants a copy email me at BRC@Ferrellschultz.com. My partner is a good pal and we sail together a lot, so our agreement is not detailed on the usage issues -- if someone reserves the boat the other has priority for the next reservation. However, the agreement does cover a number of issues that you should think about before you buy with a partner (actually, a "co-owner" might be better than a partner for legal reasons): What is the partnership going to pay for in terms of berthing, maintenance, repair, upgrades, or improvements; how is the boat owned (e.g. partnership, joint ownership or tenants in common -- can make a difference in the event of death); what happens if one owner wants to sell, gets divorced, dies, or goes bankrupt. These can be thorny issues, but as the others say, better to think them thru now rather than have a problem come up that no one thought about in advance.
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Doug
The most important thing...
Get a calendar and block out actual weeks. Put in the aggreement that it is ok to swap weeks if agreed by both parties. THEN, state that swaping weeks does not put you in obligation to do the same. It goes case by case. One of the worst things is when you ask to swap a week and they tell you "we are going to be out of town anyway, go ahead and use it". Then 3 months later when you are packing your bags for the weekend trip the phone rings and they want to swap. When you say you already plan to use the boat, they REMIND you of the all the times they helped you out. Like another said, it is not moorage payments that cause the problems, it's these kinds of things. Remember that partnerships can be great things that allow you to get more boat or reduce the costs of boating. Doug
Get a calendar and block out actual weeks. Put in the aggreement that it is ok to swap weeks if agreed by both parties. THEN, state that swaping weeks does not put you in obligation to do the same. It goes case by case. One of the worst things is when you ask to swap a week and they tell you "we are going to be out of town anyway, go ahead and use it". Then 3 months later when you are packing your bags for the weekend trip the phone rings and they want to swap. When you say you already plan to use the boat, they REMIND you of the all the times they helped you out. Like another said, it is not moorage payments that cause the problems, it's these kinds of things. Remember that partnerships can be great things that allow you to get more boat or reduce the costs of boating. Doug
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D. Riha
More advice
I have had the same partner on 3 different boats over the last 20 years. It cuts the cost and there are two to do maintenace but it has its trade offs. Use has not been a problem but we mostly day sail and split weekends if necessary. Expectations are a problem. How much maintenance, cleaning, lubrications, teak work, what to add, what to not put on the boat, when to get sail work, etc. There is a lot of give and take and you have to be flexible. One person may end up doing all the routine maintenance work or financial work because the other doen't. Ever see the movie "The Odd Couple". It gives the women a good laugh because we are like that. We have an agreement that covers ownership and costs, maintenance, insurance, operation, dissolution procedure and a separate loan agreement. covers two pages and we have never used it, but it is there.
I have had the same partner on 3 different boats over the last 20 years. It cuts the cost and there are two to do maintenace but it has its trade offs. Use has not been a problem but we mostly day sail and split weekends if necessary. Expectations are a problem. How much maintenance, cleaning, lubrications, teak work, what to add, what to not put on the boat, when to get sail work, etc. There is a lot of give and take and you have to be flexible. One person may end up doing all the routine maintenance work or financial work because the other doen't. Ever see the movie "The Odd Couple". It gives the women a good laugh because we are like that. We have an agreement that covers ownership and costs, maintenance, insurance, operation, dissolution procedure and a separate loan agreement. covers two pages and we have never used it, but it is there.
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