Join Date: Feb 2007
Location: New Jersey
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Re: To Share or Not to Share...
I had a partnership agreement ( friends) in the past. It worked out great for us. But, I realize it's not for everyone and there can be pitfalls.
I think you've received good advice above.
We did have a pretty well written agreement, an LLC, and a whole section dedicated to exit. The exit terms could be the most challenging part on a larger more expensive vessel. We had 1st right of refusal to purchase the each others share if one of us wanted out. So if/when you or your partner wanted out you'd have a few options: put the boat up for sale divide the proceeds, purchase their share, or allow them to sell their share to someone else ( who you may not know). In my case, I purchased their share. ( valuation was agreed to..but that could get tricky for you)
You should be able to work out many of the questions that you've mentioned prior to the actual purchase. If you can't agree on those things before the purchase then you've got your answer.
It worked for me because we were friends that sailed together, and most of our friends were mutual friends anyway. So scheduling " exclusive use" time was never a problem
( even though we wrote it up for the sake of the agreement)
We set up a seperate checking account, and all required expenses were divided equally.
Any " optional" expenses/ improvements were agreed to in advance and shared.
Work was shared..like bottom painting and winterizing etc.
The only disagreement that came up was re: treatment of the brightwork. I liked to treat it, my partner didn't want to invest the time or money into it and preferred to let it gray. But didn't care if I treated it. So I did. I had the time, and the money was inconsequential.
Re: use. Are you going to sail a 46'-50' boat by yourself if you don't do a partnership? If not your current partner, who would you sail with? Or would you purchase a smaller vessel as an individual/family?
What are yours/their sailing ambitions for this vessel. 50' is not exactly my idea of a daysailor..dividing exclusive time for extended trips could be done.
Good luck with your decision and your purchase!