Join Date: Feb 2000
Location: Annapolis, Md
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Sharing a boat
I thought pretty hard about doing this partnership. I decided a few things were required to make it work. First of all, from being in several previous partnerships, I know that the only way that a partnership works is if you have two people who really don't care whether they or their partners are getting more than or giving less than their fair share.
The second piece of this is that from my perspective, as the significantly majority owner and planning to own the boat for a long time, I fully planned to upgrade and restore the boat over time in a way that makes sense for my long term plans. I discussed this with my partner before hand and it was agreed that I can proceed with these improvements and my percentage of equity would increase in proportion to each of my capital expenditures in the boat.
We also came up a simple formula to address operating expenses and as part of our agreement and accounted for in this formula for dividing operating expenses, I am doing the labor for all normal maintenance that I have the ability to normally perform, which does not bother me since the boat is stored at my house and I would have wanted to do the maintenance on the boat if I owned the boat outright anyway.
Lastly, we have a clear agreement that covers pretty much any conceivable contingency including a fair ''buy/sell'' clause.
Another component of this decision is that I am also restoring a house on the water and so really can't use the boat as much as I would like in the next couple years. Having a partner has greatly reduced my loan costs.
I am quite optimistic. We shall see.
Last edited by Jeff_H; 07-19-2010 at 03:37 PM.