Property disputes can commonly arise between owners of neighboring properties. However, in some instances, property disputes can arise between owners of the same piece of property. In these cases, partition offers one legal avenue to address disagreements about the use or management of property owned by two or more people.What is Partition?Where multiple parties are co-owners of a single piece of property, partition is the legal process of ending the co-ownership and dividing the property between the co-owners. There are two main types of partition:
- partition in kind, and
- partition by sale.
Partition in kind: Under this type of partition, the property is literally divided into separate parts, and each co-owner receives a portion equal to their ownership interest. For example, if Abby and Billy each owned 50% of a 100-acre parcel of land, a partition in kind would divide the property and distribute one 50-acre parcel to Abby, and the other 50-acre parcel to Billy. Partition by sale: Partition by sale is a more common method of partition. Under this type, the court orders the property to be sold at a public auction, and the proceeds of the sale are distributed to each co-owner in proportion to their ownership interest. Who Can File for Partition? In Tennessee, any person who co-owns a piece of property can seek partition. Tenn. Code Ann. § 29-27-101. The size of the co-owner’s interest does not matter. This means that if Abby owned 99% of the 100-acre property, while Billy only owned 1%, Billy has just as much right to seek partition as Abby. How to File for PartitionA partition lawsuit is initiated by filing a complaint in the chancery or circuit court where the property is located. The complaint must describe the property at issue and state the names and residences of all owners and their respective interests. All co-owners must be named as defendants, so that each one can be notified about the partition of the property. The Partition Process The next step is for the court to determine whether the property can be divided in kind. If the property can be divided in kind, the court will order a surveyor or different expert to visit the property and divide it. Tenn. Code Ann. § 29-27-116. The parties can request a specific way to divide the property, but the court’s goal is to ensure that each owner receives a fair share based on their ownership interest. However, some properties cannot be divided without injuring the value of one or more co-owner’s interests, making partition in kind infeasible. As the number of co-owners and uses to which the land is susceptible increases, the likelihood of a partition in kind decreases. If the court finds that it is not feasible to divide the property in kind, it will instead order a partition sale. Tenn. Code Ann. § 29-27-201. The court typically appoints a disinterested party to manage the sale, and the final sale is subject to court confirmation. Once the property has been partitioned in kind or a partition sale is completed, the court will enter a final decree. This decree confirms the partition or sale and severs the interests of the former co-owners. This gives each party sole ownership over their portion of the property or proceeds. Partition can be a complicated process, especially if there are many co-owners and some owners are opposed to the partition. Because partition by sale is the more common method of partition, it can sometimes lead to owners losing their family land. If you or someone you know is involved in or may become involved in a legal dispute, it is important to act quickly and seek legal assistance. At King Law Offices, we understand the sensitivity and complexity of these situations and are here to help. Our experienced attorneys can guide you through the service process and the rest of your legal issues. Contact King Law Offices today at (888)-748-KING (5464) for a consultation.