We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Is Fractional Boat Ownership?

Malcolm Tatum
By
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Fractional boat ownership is a type of partial ownership arrangement in which two or more parties determine to undertake both the benefits and responsibilities of sharing the ownership of some type of vessel. In many cases, the property owners involved will own equal portions of the boat purchased, and also share in the use and upkeep of the boat equally. At other times, this asset sharing arrangement may include multiple partners who own various percentages of ownership, and share in the benefits and responsibilities in accordance with those individual percentages.

Each fractional owner within a fractional boat ownership scheme works together in order to make use of the boat, as well as manage the expenses such as mooring costs, storage during months the boat is not slated for use, and any taxes and other costs that may be involved. This includes the financing that may be used to purchase the boat, the costs of cleaning and general maintenance, and any charges associated with boat licenses. Depending on the laws that prevail in the area where the boat is purchased, all individuals or entities involved in the fractional boat ownership may be held liable for taxes and other fees associated with the ownership.

Along with sharing responsibilities and obligations, fractional boat ownership also allows each owner the opportunity to make use of the boat from time to time. For example, if the boat in question is a yacht that is jointly owned by four different individuals, each owner will have access to the boat for a certain amount of time each calendar year. Typically, the owners can come together and set a schedule for usage that is agreeable to everyone concerned, as well as make plans on how to manage maintenance and other responsibilities.

One additional benefit of fractional boat ownership is the ability to actually use the asset to generate income. Once the owners have determined when they would like to have access to the boat, it is possible to engage the services of an outside agency to oversee the rental of the boat. This approach can often be used as a means of keeping the costs of ownership within reason, and may event create an income stream that can be used to pay off any mortgages on the asset. Once all outstanding debt related to the boat is settled, the owners can then divide any remaining income between themselves, based on the percentage of ownership held by each one.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including WiseGeek, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.