Boat Partnership Agreements

[SweetSurrender]

The two of us are going to buy a boat together. We are living in sin, so no marriage things to consider here.

If something happens to the other, what is the right kind of partnership agreement to have so that the other partner gets the boat? We don't want to just cover in the case of death, but any number of imagined scenarios.

I know we could do this in a will, but what other ways are best practice?

[MarkJ]

Sometimes in this world you have to look at the list of the worlds most despised professions.....

Below shonky Used Car Dealers and Drug Traffickers are Politicians, just below them are Lawyers.

Sorry, but this is one occasion you may need to darken a Lawyers doorway!

[Jonesee]

You need to consult an atty. Your partner's ownership will be transferred with the estate, and/or through probate if they don't have a will. A solid partnership agreement should handle most contingencies including death, or gawd forbid... you two split the sheets.

If the boat is valuable enough, you might also look into key-man insurance. Should your partner pass away, the life insurance policy would provide a settlement to use to buy your partner's share of the boat.

Don't assume death is the only thing that can go wrong. Partnerships go south everyday even without the romantic twist. You need to have everything layed out by an atty now while cooler heads prevail.

Think of the most twisted, screwed up development and it would not be out of the realm of possibility. Let's say you two break up when she runs off with someone that you absolutely can't stand. She passes away and her ownership is passed to the new guy who stole her. Holy Jeezo-Pete, HE IS NOW YOUR NEW PARTNER!!!

Please consult an attorney.

As for living in sin, I hope it turns out as well as my relationship has. We started living together when I was 19 she was 18. Married at 24 and 25. We've been together 29 unbelievable years now.

[Tempest245]

I agree consult an attorney.

I had two partners with my 1st cruising boat. We set up an LLC ..wrote a partnership agreement and had it notorized. It was never tested legally though. We were three guys who were all childhood friends. ( and key, we remain so today)

We had a seperate boat account, and all expenses were divided three ways.
We had what we called exclusive use time, which was scheduled, but rarely used.
Key for me was the agreement that shares of the boat were to be sold back to the partnership, should one of us decide to op out or croak. ( we set up rules for valuation and financing if nec. )

I ended up buying out the other two shares eventually...fortunately I could afford to do so at the time. Sailed it for 2 or 3 more years, then sold her back to one of my former partners, whose kids were of sailing age by then. He then moved the boat to florida and eventually donated it to the boy scouts. I would hope she is still sailing.

[AnchorageGuy]

You really don't need an agreement for the boat ownership in case of death. Simply have it documented in both names with the right of survivorship and that is it. For further agreements the advise to consult an attorney is sound.

[Ex-Calif]

I have been in a successful partnership for over 2 years. I modified a partnership agreement and it has stood us in good stead. It includes disolution, death, divorce and other contingencies.

If you are not married I would treat it as a standard partnership.

Relative survivors, if no will, will make claim to the asset in some way. Our agreement has not been tested but it stipulates a declared value and the survivor has the first right of refusal to buy the other partners share at the declared value.

My experience is that survivors do not want the asset, they want the cash.

We also have the process for sharing expenses documented and there is a boat account. There is descriptions of how the account is liquidated also.

Also get it reviewed by a lawyer.

PM me with email address if you want our sample.

[spencersherf01]

I WAS READING UR MESSAGE ABOUT boat partnerships i didnt know if you knew where i could see a sample one or get one im interested in going in on a boat with someone let me know thank you

[johneri1]

Consulting an attorney is the best advise (unless you're like me and want to be more hands-on). You can title the boat in both names with "and" between them, and consult Nolo Press on line for partnership agreements--they are really helpful oftentimes. Good luck with the sin part. . . .

[Newport II]

please send me a copy of your partnership agreement, thanks Dave

[Scribbler]

Hi

Just bought a 15 ft Boston Whaler jointly with the agreement of survivershiip. He dies its mine, I die it's his. He is married, I am not. I have no heirs, he does. Should I do a more complicated agreement.