What to Put in a Boat Co-Ownership Agreement

Boats raise questions a casual arrangement can't answer: Who's allowed to take her out alone? What happens when she comes back with a scratched hull and nobody's owning up? A written co-ownership agreement settles these on dry land, calmly, before they turn into an argument at the dock. Below is a clause-by-clause checklist of what belongs in one. It's a practical guide, not legal advice — use it to walk into your attorney's office knowing exactly what you want.

Shares and how she's titled

State each owner's percentage and how the boat is titled and registered — jointly or through an entity like an LLC. The share split drives how standing costs are divided and how votes are weighted, so pin it down in numbers rather than a vague sense that everyone's equal.

Who may operate her — and how

This clause is unique to boats and matters more than any other. Spell out:

• The experience or certification an owner needs to take her out solo.
• Whether a guest can operate her, and under what supervision.
• Any hard rules — alcohol aboard, night operation, weather limits, how far offshore.

Getting this in writing protects both the boat and the friendships when someone's judgment is in question.

Scheduling and prime-season access

Decide how trips are booked and approved, how far ahead they can be claimed, and how the best summer weekends are rotated or capped so no one corners them. Boats add a wrinkle: weather. Note whether a weathered-out booking earns priority on the next good window, so a blown forecast doesn't quietly cost an owner their turn.

Costs, the reserve, and the yard bill

Separate standing costs split by share — the slip, insurance, registration, winter storage — from usage costs that follow whoever runs her, like fuel and engine-hour wear. Define the reserve fund: how much each owner contributes, how often, and the threshold above which a repair needs a group vote. For the full treatment, see our guides on co-owning a boat with friends and building a maintenance plan.

Damage, return condition, and guests

Define how she should come back — fueled, flushed, cleaned, gear stowed — and what happens when she doesn't. Decide who's responsible for damage during an owner's trip versus normal wear, how an insurance deductible is allocated, and whether guests are covered. A short, agreed standard here prevents most day-to-day friction.

Insurance and liability

Record who carries the policy, the coverage required, and the obligation on every owner to keep it current. Boating liability is real, and a clear insurance clause is what protects the group if something goes wrong on the water.

Decisions and deadlocks

Set which choices are routine majority calls and which — selling, repowering, a major refit — need unanimous consent. Name whether one owner acts as managing owner for day-to-day items, and how a deadlock gets broken, so the group never stalls at the worst possible moment.

Exit: selling, buyouts, and default

Cover how an owner sells their share, whether the others get first refusal, how a share is valued, and what happens if an owner stops paying. Include death and divorce, so a share never lands with someone the crew never chose. It's the clause everyone skips and later wishes they hadn't.

Keep the agreement and the records together

An agreement helps only if everyone can find it and the day-to-day matches it. SharedVessels lets your group capture these terms, print a formatted summary for your lawyer, and then run the schedule, expenses, and maintenance against the very rules you agreed to — so the document and life at the dock finally line up.