Partnerships

[CaptnMatt]

I am thinking of adding a partner into my boat. Does anyone know how this works?

[Pblais]

You draw up and agreement and you both sign. It only works because you both agree to make it work. The agreement needs to spell out all the issues (as in everything you can spell). If it is complete then it should be most fair. That is until someone becomes unhappy and then the partnership fails. If both parties are not satisfied then the whole thing crumbles. If you are adding a partner and you want a 50/50 split then it really is important that you make sure you can come to a good understanding before you enter into the agreement. If you don't want to split the deal 50/50 then it will be difficult to maintain any partnership agreement where you call all the shots and they get what ever you decide you want to give. Something like that screw the whole deal down the road.

Critical issues would include division of expenses, labor, boat use, and responsibilities. It would be wise to have a good insurance policy as the accident of one impacts the other. This would be a time for good insurance coverage. making an agreement that outlines responsibilities is not enough when things go bad.

I know one friend in partnership with a boat and the deal works but they don't always turn out that way.

[CaptnMatt]

Thanks Pblais. I appreciate the advice.

[Palarran]

My first power boat I bought with one of my best friends. Three years later I had to pay him a grand to get out of the deal and we didn't talk to each other for two more years after that. We're over it now and laugh about it but wow - be carefull.

Having said that, a partnership still seems to make sense. I'd like one where the boat is on a long term cruising plan and we swap off for large periods of time. Good luck

[Jonesee]

Please be aware. Once you sign a partnership agreement, you can be held personally liable for anything that happens on the boat and any damage the boat may cause even if it was caused by the actions or inaction of your partner. Florida is a vicarious liability state and vicarious liability is a nasty thing.

I suggest you consult an attorney. I also suggest an umbrella policy if you have any personal assets to protect.

just my $.02 my advice is worth what you paid for it

[Ex-Calif]

I am in a co-ownership now and can send you our agreement if you want a sample. It is extremely important to have an agreement that covers as many contingencies as you can think of.

I won't comment about the liability part other than I was in 2 aircraft partnerships (a high liability endeavor) in the USA previously and there are literally thousands of aircraft partnerships in the US today. It is not a show stopper in any way.