Mutual Ownership

[reelapeelin]

Originally Posted by cterrebonne

that makes alot of sense. If its all laid out up front it would be hard to contest some issues and snake out of them. I did think that if you sort of did a pro rated way to pay for repairs and bills etc. It would be simple algebraic functions nothing major. As in lets say put in 4K in a seperate bank account with all parties names on it. Then after a year of running the boat all hours would be logged and associated to each individual. i.e. pete and repete own a 31 fountain cc. total fuel bill at the end of the year $1800, maintenaince is $500 and the air comp on one of the opti;s went out. $600. total of $2900 for the year. well pete used it by himself for 4 trips, repete used it by himself for 5 trips and they fished together 3 times. 2900 / 12 trips. = 241.67 per trip then you would do the associated math. but the note would be the tricky thing to work out. I would guess the note would be at 50% regardless since the general use and abuse was calculated for before hand??

The initial cost of the boat would be a fixed number for all, not dependent on use...there would be certain other fixed costs...storage, taxes, insurance...

Prior to inking the deal, discuss and agree on what happens when pete has a few too many and crashes the boat into a piling, or another boat...turning that into insurance raises the probability insurance will go up...does pete pay for the ins increase?...and what if repete neglects to check the oil and motor seizes?...repete is OBLIGATED to pay for suitable repair/replacement in timely manner lest other parties are denied use of their investment...may sound trivial now, but when it happens, it'll be a big POOP in the fan...cover as many bases as possible BEFORE the decision to buy as a group...you might even consider incorporating (not a big deal)