Family-owned property can be a source of unity or conflict. When siblings inherit the family home, or when multiple relatives co-own investment property, disagreements about management, use, paying costs, or selling the property are common. As an attorney representing parties in partition actions involving family members, I’ve seen how these disputes can fracture relationships and deplete estate value through litigation costs.
If you are having trouble with another co-owner of a piece of property and would like to consider your options in bringing a partition action, please call Anthony Burton at (949) 244-4207. We can discuss your options, including whether a partition claim is right for your situation.
What is Property Partition Under California Law?
A partition action is a legal proceeding that allows co-owners of real property to divide their interests or force a sale when they cannot agree on the property’s management or disposition. California law recognizes partition as an absolute right of co-owners, so any co-owner can compel partition regardless of whether other co-owners object.
Partition actions end arrangements when consensus cannot be reached. The fundamental principle involved is that no one should be forced to be a co-owner against their will.
Partition in kind involves physically dividing the property into separate parcels, with each co-owner receiving a portion corresponding to their ownership interest. This may work well for large land parcels that can be subdivided, but it’s not nearly so practical for single-family homes or properties that lose significant value when divided.
Partition by sale is the more common approach. It involves all the parties selling the property, with the proceeds going to the co-owners in proportion to their ownership shares. If one or more parties want to own the property while one or more parties want to sell their share, the court can have the property appraised, with those who want to keep it paying those who want to move on.
Generally, a partition process involves the following:
- At least one co-owner files a complaint in superior court
- The court determines each party’s ownership interest
- The court decides whether the property can be physically divided fairly
- If not, the court orders a sale
- A referee may be appointed to oversee the sale process
- Proceeds are distributed to owners to reflect their share of ownership after deducting costs of the action, including attorney’s fees, court costs, and referee fees
As with other civil actions, the parties can negotiate a resolution after the process has begun.
How Can Partition Disputes Be Prevented Before They Start?
If you own the property that may be owned in the future by siblings, you should discuss your plans with them before creating your estate planning documents. They may or may not want the property, and though you are free to leave it in your will as you wish, if you don’t consider their perspectives, you’re just setting the stage for future conflicts.
Each family is unique, and the possibilities are almost endless, including the following:
- They may want to live in and share the home
- One would prefer the cash value of their share, while another wants the property
- They may agree to rent the property, and split the costs and income
Life is unpredictable. Siblings who consent to co-ownership and splitting costs may be agreeable at the start, but one may be unwilling or unable to pay for future repairs, maintenance, or taxes. Relationships can ebb and flow over time. They may be on good terms at one point, but not want to be part of each other’s lives in the future.
You could have your estate’s administrator sell the house and split the proceeds. That buyer may be one of your children who will pay their siblings their share of the property. The sale can be on the open market, where your children compete with others, or private and based on the property’s appraised value.
If you have no estate planning or will, your property will pass to your next of kin. That would be a surviving spouse, but if there is none at the time of your death, your children would equally share property ownership. They would be left to resolve their difference amongst themselves.
How Can Co-Ownership Disputes Be Resolved Without Litigation?
If you and your siblings co-own property and disagree about its management or disposition, you have options to try to resolve the issue short of expensive and time-consuming litigation. The situation may have started well, but co-owners may eventually have financial needs that make the property’s upkeep a lower priority, shifting a greater burden to the other owners.
If this becomes a problem, legal action can include partitioning the property, and the owners who pay more than their fair share could seek reimbursement from the one falling behind on their financial support.
Negotiation, either directly or through attorneys, should be the first step. Often, disputes arise from poor communication or misunderstandings about each party’s intentions and constraints. One sibling may want to sell because they need money, while another wants to keep the property for sentimental reasons. Understanding these underlying interests rather than focusing on positions should be more productive.
A buyout arrangement allows one or more co-owners to purchase the interests of others who want to exit the co-ownership. This preserves the property for those who want to keep it while providing cash to those who want to sell. The key challenges are agreeing on valuation and financing the purchase. Professional appraisals can establish fair market value, and owner financing or bank loans can make the buyout feasible.
Mediation is an option where a neutral third party tries to bring the parties to a resolution. A skilled mediator can help family members communicate effectively, identify shared interests, and develop creative solutions. Mediation is confidential, less expensive than litigation, and better preserves family relationships than courtroom battles.
Family members might agree to a private sale with proceeds divided according to ownership interests. While this achieves the same result as partition by sale, doing it collaboratively saves substantial legal fees and allows the family to control the sale process and timing.
If all else fails, the parties can give up their control of the conflict and go to court to have it resolved.
We’re Here to Help
If you and others own property and can’t agree on what to do, contact us at (949) 244-4207 or email us at info@awblawpc.com today. We can discuss negotiating your way through this and, failing that, how a partition action could resolve the dispute.
