What is a Partition Action?

When co-owners of a real estate premises cannot agree on how to use or sell the shared property, one owner can file a partition action. The most common type of partition is a partition by sale. A partition by sale occurs when a court orders the sale of a subject property and divides the money among the co-owners based on their shares and interest in the property. This generally occurs when unmarried couples who jointly own a piece of property separate as a couple and no longer live in the property together. In this instance, one party lives in the jointly owned house and the other party moved out but wants his or her half of equity in the house. If the parties cannot agree on a buyout number, then a partition action is needed to order the sale of the house and distribute the proceeds equitably to each co-owner.

There are other instances besides unmarried couples breaking up to file a partition action. For example, family inheritance disputes. When siblings inherit property as co-owners and cannot agree on the management or sale. Additionally, partition actions could be initiated if there is a disagreement in investment properties when co-investors have conflicting financial goals.

Partition actions is a useful tool to ensure that a property gets sold and its proceeds get distributed equitably when co-owners of a property cannot agree on a sale or use of the property.