A partition action enables parties who jointly hold property to divide their interests and claim their respective portions of the property. When co-owners cannot come to an agreement on those issues or when they have extremely diverse opinions about whether to sell, keep, or divide the property, a partition action may be necessary.
Despite the fact that most people associate a partition action with real estate, the division of real estate interests, or the sale of real estate to pay an interest, a partition action can occur with any sort of property including personal property. Florida law allows for the division of both real estate and personal property. However, the vast majority of partition cases are indeed for real estate.
Here is everything you need to know about a partition lawsuit.
Why May a Partition Action be Necessary?
Partition actions often come about because the property or land that has been purchased has more than one person’s interest and differing ideas of how to proceed with the real estate or personal property. The parties involved could be family members or simply partners with a financial interest.
More common reasons a partition litigation occurs is with situations such as those who have inherited property, have conflict between siblings, experience a divorce, or even with disgruntled business partners.
If these interests diverge such as when there are different opinions of what to do with the property, a dispute may arise. For example, if one wants to improve the area or build on the property, but the other individual prefers to sell, a complication may develop around the decision making for choosing the best course of action.
These circumstances surrounding next steps can become complicated, especially in the case of real estate. A lawyer specializing in real estate is recommended in such cases.
What are the Elements of a Partition Lawsuit?
The filing of a complaint in the county where the property is located is typically the first stage in the partition lawsuit procedure. The partition complaint must meet a number of standards, one of which is to identify the parties’ respective ownership interests.
The court may also be required to determine the status and priority of all liens on the property as part of a partition action.
If the court finds that there is a dispute over title ownership, it may appoint a partition referee to investigate the situation and produce a report. The referee’s report, however, is just that, and a judge may choose to put these matters before a jury.
The Court will make a formal determination of the ownership interests, in what is known as an interlocutory decision, if it finds that the party who filed the complaint has a right to partition.
Once the Court has determined who is the rightful owner of the property, then the Court will decide how the property should be divided, such as through private sale or division.
After deciding how to divide the property, the Court will assign a referee to partition the property, either by selling it or dividing it.
Once the property has been divided, the Court will account for the contributions made by each party to the property and make adjustments in accordance with those contributions.
Finally, the Court will distribute the proceeds to the parties after determining each party’s contributions with the necessary adjustments to the proceeds.
We Can Help with Your Real Estate Law Matter
There are many different issues that may lead to real estate litigation in Florida for both businesses and individuals. If you need assistance or have questions surrounding real estate matters or any other legal matter, our attorneys at Apfelbaum Law are ready to help you. Contact our office today for a consultation.
