This paper presents a step forward in the formulation for incompressible fluid flow analysis using the Finite Element Method (FEM) for naval hydrodynamics problems. The necessary stabilization of convective character and incompressibility restriction are introduced via the finite increment calculus (FIC) technique. A second order implicit monolithic method, based on projection schemes, to solve Navier Stokes equations is also presented. The fluid flow equations are written in an Arbitrary Lagrangian Eulerian way, useful to treat fluid-structure interaction problems, both using the standard ALE approach or the fully Lagrangian one. Finally, some examples of application of this formulation in practical naval problems are presented.