On behalf of Lang Law Office posted in Real Estate Law on Wednesday, July 05, 2017.
There are countless reasons you might be facing a property partition. According to Huffington Post, disputed property division in a divorce is common. Alternately, you might have invested with a business partner who no longer wants to be involved but wants to retain partial equity. Partitioning the property is a possible solution for these and many other situations, but the process is not as easy as just dividing it between each party.
There are several different ways, in fact, to partition such property, and it is important to understand each of these. The following three are some of the most common methods employed, though you should carefully consider what course of action is legally and financially the most beneficial.
Partition by sale
This may also be referred to as a partition by succession or licitation, and it involves selling the shared property to split the proceeds. If you and the property’s co-owner are unable to agree on the division that allows you to both maintain ownership, this may be the best solution. The proceeds from the sale will typically be divided equally between all parties.
Partition in kind
A partition in kind agreement effectively separates the property into parts that are individually owned and managed by each party. This is typically the simplest solution, but if there is animosity between the property’s owners, it is often difficult to come to a consensus. If this option works for you and the co-owner, though, you can proceed with the partition and register your new part with the county clerk.
In some cases, partitions are not voluntary at all. A judicial partition, which one might also call a compulsory or court-ordered partition, is an example of this. Some of the various reasons for involuntary partitioning of your property include public policy or statutes of limitations. No matter what the reason is, you should become familiar with your legal rights if you are facing this situation.