The Legal Process of Partitioning Family-Owned Property

 
In this case, partitioning is the answer. However, its sentimental value may make the process challenging. In this guide, we’ll walk you through the entire partitioning process from scratch.

1. Assess all shares and rights

Knowing your rights and shares on family-owned properties is important to pursuing partitioning.

 
If the form of co-ownership is “tenants in common,” each co-owner has as many shares as mentioned in the deed. If nothing is mentioned, both parties will own equal shares. 

In the “joint tenancy” co-ownership form, all co-owners have equal rights and shares. If any co-owner dies, their ownership is passed to the remaining owners.

2. Negotiate with others

Arrange a meeting and share the desire to partition with all co-owners. Do this before seeking legal help, as effective communication helps resolve issues and saves legal fees! Suggest possible strategies to ensure proportionate and fair distribution.

 
If direct communication doesn’t work, seek neutral parties such as mediators or arbitrators. Mediators understand the issue, negotiate, and find a fair, unbiased solution. Mediation is an informal and confidential process.
If all owners agree on the solution, the partition won’t need court involvement.

3. Seek a partition lawyer

If the remaining co-owners don’t agree at all, and you are residing in San Francisco, contact a San Francisco partition lawyer with a strong reputation and expertise in partition lawsuits.

 
Ensure they have great negotiation and litigation skills. They will explain any complex legal terms to help you understand your rights and shares further.

They will clarify your rights, help you prepare all documents, file a complaint in court, and represent your case to help you win.

4. File a partition lawsuit

If the co-owners disagree with the mediation, seek your partition attorney and file for a partition action.

In this, your attorney drafts a partition complaint and submits property ownership and other documents, including all co-owners’ names and shares.

You’ll also need to add the reasons behind seeking partition and the outcome you expect from the court.

5. Serve all co-owners

Serve copies of the filed complaint to all co-owning family members to notify them about the legal action. They have a time period to file a response. They may agree to partition or contest for shares or other issues.

6. Attend court proceedings

If they contest the complaint, you have to attend court proceedings. All sides will share their arguments, documents, and relevant evidence for shares or disputes.

The court reviews all documents and establishes that the plaintiff (you) has ownership interests in the property. If ownership interests are unclear, they order an accounting to find that. They then order a property appraisal for fair property partition.

7. Referee appraises the property

The court appoints a partition referee to oversee the situation. A partition referee is a neutral third party and stands accountable to the court throughout the proceedings.

According to the court’s order, they review the entire property and learn about its value. This lets them decide whether the property can be physically divided into fair parts. If it’s impossible, they identify the property’s fair market value.

They then report to the court about what they found and recommend the best solution for the property.

8. The court chooses a partition method

Based on the appraiser’s findings and the court’s understanding of the decision, the court decides how the property gets divided. It can happen in the following ways:
- Partition by Sale: You sell the property and divide proceeds according to shares.
- Partition in Kind: You physically divide the property into different parts according to shares.
- Partition by Appraisal: One or more co-owners buy the shares of the other co-owner. The partition referee or a neutral appraisal sets the price under court supervision.

Courts usually choose Partition by Sale to resolve such issues. However, if you want to sell the property but the remaining co-owners don’t agree, the court tells them to buy your shares as per Partition by Appraisal.

9. Court offers final decision

According to the chosen partition method, the court gives a final judgment to all co-owners. If they choose Partition by Sale, there should be an accounting to ensure all proceeds are distributed fairly and legally.

 
However, home sales may take 30-90 days on average, so be patient!

Conclusion

Family-owned property partitioning is complicated and needs careful consideration. So, seek a partition lawyer early on, protect your interests and rights, and ensure a favorable outcome.