Dividing Co-Owned Property: When You Need a Partition Action

Co-owning real estate can work—until it doesn’t. If one owner wants to sell, another wants to keep the property, and nobody can agree on next steps, a partition action may be the legal tool that finally breaks the stalemate. It’s not always the first option, but when the situation is stuck, partition can provide a clear, court-supervised path to a fair outcome.

At Steltzner Law Firm, we help clients deal with real estate disputes that feel personal, stressful, and financially risky. Co-ownership conflict is one of the most common problems we see, especially after an inheritance, a breakup, or a failed investment partnership.

What “Co-Owned Property” Really Means

Co-owned property is any real estate owned by two or more people. Common examples include:

• Siblings who inherited a family home
• Unmarried partners who bought a house together
• Friends or relatives who invested in rental property
• Business partners who purchased commercial real estate
• Family members added to a deed “for convenience,” then disagreements happen later

If the owners can cooperate, co-ownership can be manageable. But when goals diverge, it can become a deadlock—because each owner has legal rights tied to the same asset.

What Is a Partition Action?

A partition action is a lawsuit that asks a court to divide co-owned property (or its value) when the owners cannot agree. The basic goal is simple: end the shared ownership in a way the law recognizes as fair.

Partition usually happens in one of two ways:

1) Partition in kind (physical division)

This is when the court splits the land into separate pieces and assigns each owner a portion. This is more common with larger tracts of land than with a single house in a neighborhood.

2) Partition by sale (sale and split proceeds)

This is the most common outcome when the property can’t realistically be divided—like a single-family home. The court orders the property sold, then the proceeds are distributed among the owners based on their legal interests (after approved costs and adjustments).

The right option depends on the property, the type of ownership, and the disputes involved.

When a Partition Action Makes Sense

A partition case is often the “last resort,” but it becomes necessary when the dispute blocks every practical solution. Common situations include:

One owner refuses to sell

You want out. They say no. Meanwhile, the mortgage, taxes, insurance, and maintenance keep piling up. Partition can force a resolution.

One owner moved in and won’t leave (or won’t pay)

If one co-owner occupies the home while the other pays (or can’t access the property), resentment grows fast. A partition case may address occupancy issues and financial credits.

The property is inherited and everyone disagrees

Inherited homes create emotional conflict and practical problems: deferred maintenance, old title issues, unpaid taxes, or simply different opinions about what “should” happen. Partition gives structure when family negotiations fail.

A co-owner won’t contribute to expenses

If you’re paying the mortgage, property taxes, repairs, or HOA dues while another owner pays nothing, you may want the court to order a sale and sort out reimbursement or credits.

You want a buyout, but the other side won’t cooperate

Sometimes one owner is willing to buy the other out—at a fair price. But if the parties can’t agree on value, timeline, or terms, a partition case can push the process forward and prevent stalling.

What a Court Can Address During Partition

A partition action is not only about “sell or split.” It often includes financial cleanup so the final result is closer to fair.

Depending on the facts and the applicable law, the court process may consider issues such as:

• Ownership shares (50/50, 60/40, etc.)
• Mortgage and tax payments made by one owner
• Repairs and improvements paid for by one owner
• Property income (like rent) and who received it
• Waste or damage caused by an owner
• Sale costs (agent commissions, closing costs, etc.)

In plain terms: partition is often where the money trail gets sorted out.

Steps in a Typical Partition Action

While every case is different, many partition actions follow a predictable path:

Step 1: Confirm ownership and gather documents

Deeds, closing documents, mortgage statements, tax records, insurance info, repair receipts, and communications between owners can matter. Clean documentation makes your position stronger.

Step 2: Attempt a voluntary solution first

Courts generally don’t punish you for trying to settle, and voluntary agreements often save time and money. This can include:

• Written buyout proposals
• A formal demand letter
• Mediation
• A listing agreement everyone signs

Even if settlement fails, it helps show the court you acted reasonably.

Step 3: File the partition lawsuit

The case is filed in the appropriate court and served on the other owners. They can respond, dispute ownership shares, raise defenses, or propose alternatives.

Step 4: Court evaluates the best method

If the property can’t be divided fairly, the court may move toward sale. In many cases, the court will set procedures for valuation, listing, offers, or auction-type sale methods.

Step 5: Accounting and distribution

After sale (or division), the court can address expenses and credits before distributing proceeds. This step is where many disputes get resolved—or intensify—depending on how well the records are presented.

Costs, Timeline, and Risks to Know Up Front

Partition actions can be straightforward or heavily contested.

Costs may include filing fees, service fees, appraisal costs, title work, and potentially agent commissions if the property is sold. Legal fees depend on complexity and conflict level.

Timeline varies. Some matters resolve in a few months. Others take longer, especially if there are disputes over ownership shares, reimbursement claims, or property value.

Risks include:

• The property selling for less than expected if rushed or contested
• Extra costs if the parties fight over every detail
• Relationship fallout (common in family cases)

That’s why it’s smart to explore buyouts or negotiated sales first—but also important to act when the situation is stuck and draining your finances.

How to Avoid This Problem in the First Place

If you’re buying property with someone (or inheriting it with others), planning early can prevent a future lawsuit. Useful safeguards include:

• A written co-ownership agreement (who pays what, who can live there, how to sell)
• Clear exit terms (buyout formula, appraisal process, timelines)
• Rental rules if the property becomes an investment
• A plan for disputes (mediation first, then legal action)

If you already co-own and conflict is rising, it’s still worth putting terms in writing before things collapse.

When to Call Steltzner Law Firm

If you co-own a property and you’re stuck—can’t sell, can’t buy out, can’t agree, and can’t move forward—this is usually the moment to get legal guidance. A well-handled partition case protects your financial interest, forces transparency, and moves the situation toward a final resolution.

A partition action is a powerful tool, but strategy matters. The earlier you get advice, the more options you usually have.