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Thinking about co-own a boat

Old 06-27-2020, 08:28 PM
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Default Thinking about co-own a boat

I am thinking about buying a boat with a friend. I know it's important to have a comprehensive agreement put together so we can share the use and cost of buying/using the boat harmoniously. Things like equitable share use, responsibilities of using the boat, share costs vs individual costs, incidents/accidents responsibilities, etc would be important to write them down and agreed upon. Other things like separation clauses in case one party wants to get out or sell the ownership to another person should be there, too.

Just want to get from some of you who has done this before and would like to share some of your experiences and best practices that I should consider before diving in.

If you could share an agreement template that I can modify and use, that would be greatly apprecaited.

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06-27-2020, 08:32 PM
ndb8fxe
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These types of arrangements usually cause loss of friendship.
Old 06-27-2020, 08:32 PM
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These types of arrangements usually cause loss of friendship.
Old 06-27-2020, 08:36 PM
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Other than loaning money outright, I can't think of a quicker way to ruin a friendship.
Old 06-27-2020, 08:36 PM
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Originally Posted by ndb8fxe View Post
These types of arrangements usually cause loss of friendship.
YEP. Like co-owning a car. I'd rather have a 14ft powered dinghy than co-own a Nordhavn. Unless it's your parents/sibling/wife I would say a big fat NO.
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Old 06-27-2020, 08:39 PM
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One Ship that never sails

is a partnership.
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Old 06-27-2020, 08:42 PM
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It only works if you are both super rich.
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Old 06-27-2020, 08:45 PM
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What happens if you get a large bill come up and one of you can't afford it at that time? Does that person then not get to use the boat until they've paid their part? One of many many issues in co owning a boat.
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Old 06-27-2020, 08:48 PM
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I co-owned a boat with a buddy. We fished together all the time. We split all costs. We did all the work ourselves except repower. Never a problem and we are still friends. We sold the boat when he moved out of state.
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Old 06-27-2020, 09:02 PM
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Like most things, some works while others do not. I just want to understand the pitfalls, best practices, good advices, so I can make my decision to either do it or not. Thanks for all the input and keep them coming!
Old 06-27-2020, 09:16 PM
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If your partner takes the boat out and hits rocks, tears up a lower unit, and a prop.........who do you think should pay for it?
Old 06-27-2020, 09:17 PM
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If you are concerned about everything being split 50/50 to the penny and equal time spent on maintenance etc then don't do it. I'm partners with 1 friend on one boat and 2 friends on another. I do way more labor than them but I enjoy working on boats and frankly, I'm better at it. They always kick in on parts etc.
It can work but it can also be a disaster. A lot of it depends on the strength of the friendship and the expectations. Only you and the co-owner can make the decision.
If you are on here asking for advice that's not a good sign. Just my .02 but I speak with experience.
Old 06-27-2020, 09:31 PM
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Originally Posted by Jus Teasin View Post
If your partner takes the boat out and hits rocks, tears up a lower unit, and a prop.........who do you think should pay for it?
insurance pays most of it. The owner responsible for the accident pays whatever the insurance company doesn’t cover.
Old 06-27-2020, 09:36 PM
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Originally Posted by Lunchmoney View Post
If you are concerned about everything being split 50/50 to the penny and equal time spent on maintenance etc then don't do it. I'm partners with 1 friend on one boat and 2 friends on another. I do way more labor than them but I enjoy working on boats and frankly, I'm better at it. They always kick in on parts etc.
It can work but it can also be a disaster. A lot of it depends on the strength of the friendship and the expectations. Only you and the co-owner can make the decision.
If you are on here asking for advice that's not a good sign. Just my .02 but I speak with experience.
I am not going to be dividing everything 50/50 down to the Penny. I am more concerned about the situation that one partner wants to get out and what are the best ways to deal with this situation.
Old 06-27-2020, 09:41 PM
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Originally Posted by cp10415 View Post
insurance pays most of it. The owner responsible for the accident pays whatever the insurance company doesn’t cover.
You're on your way.

Would you be upset if the insurance premium goes up after?
Old 06-27-2020, 09:46 PM
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Originally Posted by Jus Teasin View Post
You're on your way.

Would you be upset if the insurance premium goes up after?
no. Obviously I know my friend is not a wild person who wrack stuffs or does crazy stuffs.
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Old 06-27-2020, 09:54 PM
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You seem to have the right attitude......If he's feels the same, you might be ok.

This happened to a couple of guys I knew, they didn't stay friends after.

Old 06-27-2020, 10:01 PM
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My experience: Don't.
Old 06-27-2020, 10:32 PM
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Originally Posted by cp10415 View Post
no. Obviously I know my friend is not a wild person who wrack stuffs or does crazy stuffs.
how about if you lost half a season of water time because of damage?
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Old 06-27-2020, 10:50 PM
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Originally Posted by Rubbermade View Post
how about if you lost half a season of water time because of damage?
accidents happen. There is always the next season.
Old 06-27-2020, 10:52 PM
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Originally Posted by Jus Teasin View Post
You seem to have the right attitude......If he's feels the same, you might be ok.

This happened to a couple of guys I knew, they didn't stay friends after.
I know both partners must have some amount of flexibility, good commitment to make it work, and the belief that each partner is not in it to screw the other.
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