According to the Federal Reserve Bank, the rate of homeownership in North Carolina is 64.5%. NC Commerce also notes that the affordability of the real estate market has declined notably in North Carolina from 2019 to 2025. An obvious strategy to address this lack of affordability is the co-ownership of property. When two or more buyers pool their resources together to purchase a single property, it may be easier to bear the burden of homeownership long into the future. That being said, the co-ownership of property can also cause notable legal issues. Various life changes and uncontrollable situations can lead to property disputes between owners. While resolving these issues might seem challenging, an experienced civil dispute attorney in North Carolina may be able to assist. Partition acts represent one potential solution, and this may be something worth exploring with King Law Offices. Consider continuing this conversation by contacting us at (888) 748-5464.
What Are Partition Actions in North Carolina?
Partition actions allow people who co-own property to resolve disputes by dividing their property. This legal process can occur in various ways. Sometimes, parties use partition actions to sell their properties and divide the proceeds. In other situations, parties use partition actions to physically divide properties between them. Of course, this may only be possible when dealing with properties that are easy to physically divide. This might include many acres of raw land or farmland. In contrast, a condo is extremely difficult or downright impossible to divide in this manner.
Partition actions may also involve different types of co-owners. These might include “joint tenants” or “tenants in common.” Co-ownership between joint tenants ensures the “right of survivorship,” which means that if one owner dies, the other automatically inherits the share belonging to the deceased. This inheritance process occurs without the need for probate. On the other hand, each tenant in common leaves their share of a property to their beneficiaries according to their Will.
Partition by Sale vs. Actual Partition
A “partition by sale” involves selling the property, while an “actual partition” involves physically dividing the property. North Carolina courts generally prefer actual partitions, so parties who wish to sell their properties must convince the court that this is the most appropriate course of action. Specifically, parties must show the court that a “substantial injury” would occur if the parties carried out an actual partition.
Those who prefer partitions by sale may need to prove that the rights of at least one party would be impeded by an actual partition. One might also argue that their share of the physically divided property would be lower than the fair market value if the property were partitioned by sale instead. An experienced attorney from King Law Offices may be able to assist with these kinds of arguments.
Consider Alternative Dispute Resolution Before Partition Actions
Co-owners may want to attempt alternative dispute resolution (ADR) before proceeding directly to partition actions. Since parties must pursue partition actions through the courts, this process could be more expensive and time-consuming than many realize. Civil courts often experience considerable backlogs, and the process may drag on due to endless hearings, motions, and other delays. ADR methods include mediation and arbitration. With this approach, co-owners have the opportunity to resolve their disputes privately and outside of court. A neutral mediator or arbitrator guides the co-owners through negotiations and tries to suggest outcomes that are in the best interests of all parties.
In the case of arbitration, the neutral individual does more than simply “suggest” outcomes. This “arbitrator” instead issues legally binding decisions that both parties must accept. Parties agree to accept these outcomes at the beginning of the negotiation process. In contrast, mediators can only suggest outcomes, and parties are free to reject these suggestions. However, the failure of mediation may subsequently lead to arbitration or litigation. This can add substantially to overall legal costs. If co-owners are willing to negotiate in good faith and compromise with each other, ADR could be an obvious first choice before moving on to partition actions.
When Are Partition Actions Necessary?
Partition actions are legal mechanisms for property division. Divorce is often the first subject that comes to mind during discussions about property division, but partition actions may be necessary in this situation. This is because the equitable distribution system in North Carolina already governs property division during divorce. Partition actions are therefore more common in other civil disputes. These might include arguments between business partners and unmarried individuals. These disputes might also arise between family members who inherit the same property.
For example, a decedent might leave behind a plot of land for their two sons. The two sons might start a farm together before getting into a dispute. Unable to continue working together, they may then decide that an actual partition will allow them to run their own separate farms without selling the family land. Business partners might also get into some kind of dispute after buying a large condo building together. If these business partners wish to go their separate ways, they may choose a partition by sale to extract their mutual investments from the rental property. Unmarried partners may also choose partition actions to resolve various disputes regarding residential homes.
Learn More About Partition Actions With King Law Offices
In situations involving co-ownership of property, owners may research numerous legal strategies to resolve disputes. Partition actions represent only one possibility, and it may be possible to pursue many other strategies. Generally speaking, it makes sense to avoid going to court whenever possible. Litigation can be expensive and time-consuming, and it may lead to lasting rifts between family members or business partners. Alternative dispute resolution (ADR) could be a positive first step before considering more complex resolutions involving partition actions. In order to determine whether partition actions truly make sense, it may help to discuss these situations in more detail with an experienced civil dispute attorney in North Carolina. Consider continuing this conversation by contacting King Law Offices at (888) 748-5464.
