When Partition Actions Arise
Partition actions most commonly arise in three scenarios: inherited property where siblings or relatives disagree on whether to sell, keep, or rent; former couples (married or unmarried) who co-own property and cannot agree on disposition after separation; and business partners or investors who disagree on the property's future.
Any co-owner can initiate a partition action regardless of their ownership percentage. A 10 percent owner has the same legal right to force a sale as a 90 percent owner. This is why co-ownership disputes benefit from early negotiation — once a partition action is filed, legal costs escalate quickly.
The Legal Process
A partition action begins with filing a complaint in the county Supreme Court. The court determines whether partition (physical division) or sale is appropriate. For residential property, sale is almost always ordered because physical division is impractical. The court appoints a referee to oversee the sale process.
The referee may conduct a public auction or, with court approval, list the property with a real estate agent for a private sale. Private sales typically produce higher prices than auctions. All co-owners can bid on the property. After the sale, the referee distributes proceeds according to ownership interests, adjusted for each party's contributions to mortgage, taxes, and maintenance over the period of ownership.
Alternatives to Partition
Before filing a partition action, explore alternatives: one co-owner buys out the other(s), the co-owners agree to sell privately and split proceeds, or the co-owners negotiate a usage and financial arrangement that satisfies everyone. Mediation can help resolve disputes without court involvement.
Partition actions are expensive — legal fees, referee fees, and court costs are deducted from the sale proceeds before distribution. A negotiated resolution, even if imperfect, usually leaves more money on the table for all parties than a contested partition action.