Boat sharing agreements - SailNet Community
LinkBack Thread Tools
post #1 of 3 Old 02-23-2010 Thread Starter
Junior Member
Join Date: Jul 2009
Posts: 5
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
Boat sharing agreements

Hi there,

A friend of mine and I are looking to go in together on a boat. He is the expert on maintenance and repair, and I'm eager to learn with a couple years experience sailing and a few months of racing.

The setup we're looking at is a boat that is in need of repair, or 95% complete that we can finish. His goal with the boat is to buy me out in 7-10 years and cruise it. My goal is to learn the trade of repair and maintenance, and have some good sailing time.

I'm trying to figure out how to structure the agreement. I'm pushing to put the asset into an LLC (hobby business), with the proper agreement language that will keep us friends over the lifetime of the experience. An LLC would also allow us to each take our percentage ownership as a write-off for a 2nd home (if it has a head and galley).

I found a post from Jeff_H in 2000 where he offered to send his share-agreement to those who ask. I can't reach him directly until I have 5 posts under my alias. :)

Mainly, I'm curious how the buy-out would work. If I invest an equal amount in a restoration, how does that effect a buy-out if the result of the time/expense goes to the other person. Since a boat is not a money making investment, I have to think about what value I place on the learning and sailing, as depreciation could counter any major investments I make in restoration.
nentis is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
post #2 of 3 Old 02-23-2010
Telstar 28
sailingdog's Avatar
Join Date: Mar 2006
Location: New England
Posts: 43,290
Thanks: 0
Thanked 18 Times in 14 Posts
Rep Power: 16
generally, I'm against boat sharing agreements. The simpler the agreement the better IMHO if you have to do one.

Since you're both going to be using the boat and putting sweat equity into the boat, I would highly recommend that you split all costs, including the purchase price, 50/50, and then at the end of the time period have him buy out your half of the boat for half the original cost.

His contribution to you in terms of maintenance and repair knowledge should offset any investment that you've made in the boat, as those investments would have been necessary as part of your learning process, provided the boat wasn't a complete wreck to begin with.

Go to the Song thread in off-topic and post there three more times and then PM Jeff.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Telstar 28
New England

You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

If you're new to the Sailnet Forums... please read this
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

sailingdog is offline  
Quote Quick Reply Share with Facebook
post #3 of 3 Old 02-23-2010
Not Finished Yet
RainDog's Avatar
Join Date: Jun 2009
Location: Varies
Posts: 813
Thanks: 24
Thanked 52 Times in 47 Posts
Rep Power: 9
I did this and had a very good experience. I think there are several keys to making this work:

1) Have a good long talk about exactly what you both want and timelines you will stick to.
2) Be open and honest about everything the whole way through. Don't let feelings simmer and turn into aggressive behavior.
3) Make sure you have an agreed upon way to each use the boat alone. DO NOT get into a situation where it is assumed that if one of you wants to sail, the other one is always free to tag along.
4) Agree upon the annual budget for the boat in advance. Discuss exactly what you are going to spend it on. Stick to that budget. Make sure it includes a reserve for an emergency.
5) Unless you reserve is quite large, discuss in advance what would happen if you hit a very large, unexpected expense (such as a re-power).
6) Have an agreement in advance about the buyout cost. Also have a "what if" agreement covering a situation where one of you wants out of the agreement early.

Originally Posted by sailingdog View Post
I would highly recommend that you split all costs, including the purchase price, 50/50, and then at the end of the time period have him buy out your half of the boat for half the original cost.
This is pretty much what I did. I think this works well if you are only talking about core boat systems and the boat starts out in reasonable shape. I would probably not be willing to pay 50% of expensive electronics or other expensive luxuries, especially in the last years. As long as you carefully discuss the details of the budget in advance, and your budget is realistic, you should not have too many disagreements about $$.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

RainDog is offline  
Quote Quick Reply Share with Facebook

Quick Reply

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now

In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Thread Thread Starter Forum Replies Last Post
THE Yacht Builder List T37Chef Boat Review and Purchase Forum 27 10-04-2015 01:38 PM
Making Passage w/o a Rudder wind_magic Seamanship & Navigation 60 07-16-2010 01:23 PM
You've Bought the Wrong Boat John Kretschmer Buying a Boat Articles 0 06-01-2004 08:00 PM
Naming and Renaming Your Boat Sue & Larry Cruising Articles 0 12-15-2003 07:00 PM
Fine-Tuning the Autopilot, Part Two Dan Neri Gear and Maintenance Articles 0 10-13-2003 08:00 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome