how does one find a co-owner?

Hi Matt,

Definitely have a contract that remains in force after initial signing - until the partnership is dissolved.

Any agreements that specify who has rights to fly the ship on specific days, weekends, or contests should be in a separate agreement or rider prepared and signed yearly.

Dissolving partnerships can be problematic. The 90% valuation rule mentioned by other posters can work if one partner simply wants to exit the partnership.

If a/the partners want to end the partnership relationship, putting the ship up for sale/bids may be the most accurate/fair way to determine actual value, and allow either partner to bid and retain ownership of the ship - if desired. Time-frames and procedural details should be included in the contract as this is a more complex process.

Depending on your insurance carrier, pro-rated refunds(checks)for cancelled policies will be sent only to the first named person on the policy. The partnership contract should specify these refunds will be shared equally between the partners ... or specify another allocation if appropriate. i.e. the named policy holder will have to write a personal check for the co-insured pilot. BTW, the insurance carrier/agent may not be able to legally provide any refund information (refund amounts or date refund was paid)to the co-insured pilot named on the policy.

Partnerships are a great way to own and fly wonderful sailplanes ... just take a little time to think about the possible divorce. :-)

kk

I've seen several references to "partnerships" as a way to co-own a glider. I think having one or more "pllllartners" is a great way to gain access to a glider with higher performance and/or in better condition. But I would use that as a general term and not as a specific legal mechanism.

Some sort of limited liability structure (in the old days, a C corporation; now probably a Limited Liability Corporation-LLC) is advisable to protect each owner as much as possible from legal/financial liability resulting from the actions of a "partner". My father helped organize a number of multi-owner groups back in the 60s and 70s and always, IIRC, set up a corporation as the owner, with each "partner" owning shares in the corporation. The world hasn't gotten less litigious in the meantime.

Chip Bearden

On Thursday, October 19, 2017 at 4:13:16 PM UTC-4, wrote:
I've seen several references to "partnerships" as a way to co-own a glider. I think having one or more "pllllartners" is a great way to gain access to a glider with higher performance and/or in better condition. But I would use that as a general term and not as a specific legal mechanism.

Some sort of limited liability structure (in the old days, a C corporation; now probably a Limited Liability Corporation-LLC) is advisable to protect each owner as much as possible from legal/financial liability resulting from the actions of a "partner". My father helped organize a number of multi-owner groups back in the 60s and 70s and always, IIRC, set up a corporation as the owner, with each "partner" owning shares in the corporation. The world hasn't gotten less litigious in the meantime.

Chip Bearden

Great advice ... I wish I had this information 40 years ago when Templin and I became partners in the LS-3 ... :-)

You will likely be much happier finding a lower performance ship that fits your budget than in a partnership.

I’ve owned a share in an airplane before and never again will I do that. I bought both a glider and an airplane, both are not the newest or highest performance ships but it is so much better to own the aircraft entirely.

Even if the partnership agreement is spelled out clearly and the other owners are reasonable people there will be certain frustrations that will drive you crazy.

Availability will never be an issue if it’s your own ship. With a partnership this will always become an issue at some point.

Upgrades with fractional ownership are difficult. If you want that new vario and your parters don’t....

Ownership and maintenance costs even if spelled out in writing usually will cause some frustration.

It’s hard not to overpay for a share in a glider.

When one owner decides to sell you could be forced to buy them out for more than the share is worth.

One party will usually use the ship more, and you can imagine the issues that will come up.

If you can fly club aircraft until you can find a glider you can buy outright that fits your budget you should do that. You won’t have to deal with maintenance, storage, and in some cases assembly, insurance, etc.

On Sunday, October 22, 2017 at 8:24:27 PM UTC-4, wrote:
You will likely be much happier finding a lower performance ship that fits your budget than in a partnership.

I’ve owned a share in an airplane before and never again will I do that. I bought both a glider and an airplane, both are not the newest or highest performance ships but it is so much better to own the aircraft entirely.

Even if the partnership agreement is spelled out clearly and the other owners are reasonable people there will be certain frustrations that will drive you crazy.

Availability will never be an issue if it’s your own ship. With a partnership this will always become an issue at some point.

Upgrades with fractional ownership are difficult. If you want that new vario and your parters don’t....

Ownership and maintenance costs even if spelled out in writing usually will cause some frustration.

It’s hard not to overpay for a share in a glider.

When one owner decides to sell you could be forced to buy them out for more than the share is worth.

One party will usually use the ship more, and you can imagine the issues that will come up.

If you can fly club aircraft until you can find a glider you can buy outright that fits your budget you should do that. You won’t have to deal with maintenance, storage, and in some cases assembly, insurance, etc.

Good advice ... many people are fair (even generous) and honest - others not so much - especially when a few shekels are involved.