Done it. Wont do it again. It took me a year to get my share of the project after it was sold. Oh and it was sold without me being asked and for much lower of a price than I would have accepted.
Done it. Wont do it again. It took me a year to get my share of the project after it was sold. Oh and it was sold without me being asked and for much lower of a price than I would have accepted.
The biggest problem is depreciation and one party wanting to exit earlier than the other.
Say each of you put in $1k, for a $2k boat. After a year, it depreciated to $1.8k, but you want to keep it, and your partner wants to be bought out. He wants his original $1k to be bought, even though the boat is worth less. This scenario assumes all the consumables were already split during the usage of that year.
It's a slippery slope if everything is not fully thought out before hand, make sure you have some type of contract that allows for buying each other out of a depreciated product.
I have purchased more than a few salvage cars as a co-owner. Sometimes we just look to profit on sales of parts and sometimes we are both looking for specific parts to be removed before the balance of the parts are sold off.
It can work but it takes communications and clear agreement of the common goals and methods.
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