A partition attorney is a lawyer you go to if you co-own property with people who you disagree with regarding the property’s administration. For example, if you co-own property with someone and you want to sell while the other does not, you go to a partition attorney. If you disagree with the other co-owner on the issue of how to use the co-owned property, you go to a partition attorney. The partition attorney will file a partition case with the court to request for the sale of the property and the division of the proceeds (less expenses) among the co-owners.
In a partition case, there are two ways that partition is effected: the property can be physically divided, if it is possible. Otherwise, the property is sold.
When the co-owners acquire the property as heirs, a different procedure is observed. Under the Uniform Partition of Heirs Property Act (UPHPA), which is applicable in many states, including New York, the co-owners are required to bargain in good faith regarding the sale of the property in a mediation conference. If this fails, the court is required to make a valuation of the inherited property in an evidentiary hearing. Based on this value, the property is offered to the defendant co-owners, who are given the right to purchase the share of the co-owner seeking partition. If the defendants do not exercise this right, property may be sold in open market (and not in auction) at fair market value.
A partition action is almost always granted, for as long as proper procedure is followed. For this reason, once the partition attorney files the case, parties usually arrive at a settlement regarding the administration of the property. The co-owners know they will lose equity in the property if the partition case is dragged on because the partition lawyers’ fees will be taken from the proceeds of the property before such proceeds are distributed to the co-owners. For this reason, a partition case is usually just filed for leverage in negotiations, especially for those co-owners who are not yielding in not wanting to sell the property.
Partition attorneys must have strong negotiation skills so they can effectively mediate between the parties with conflicting interests regarding the sale of the property. It is also important to know local laws pertaining to real estate transactions, zoning regulations, tax implications, and title disputes, which will be helpful in the sale of the property. In addition, the partition attorney needs to represent the client in court hearings regarding the partition action.
Partition lawyers play an important role in protecting their clients' rights in having the property sold, even at the objection of the other co-owners. Partition lawyers know the best strategy to move forward based on the individual circumstances at hand. If you own property with someone else and you are in disagreement on how to use the property, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].
Partition cases come from recurring fact patterns:
Inherited property. Siblings inherit a parent's home and cannot agree on what to do with it. One wants to sell. Another wants to keep it. A third is living there. This is the most common partition scenario in New York City practice.
Joint purchases gone wrong. Two people purchased property together expecting to share the benefits. The relationship has soured (business dispute, personal falling-out, financial difficulties). One wants out. The other resists.
Post-relationship disputes. Unmarried couples who bought property together split up. Without the legal framework of divorce to handle the asset, partition becomes the procedural answer.
Co-owner not contributing. One co-owner has been paying all the carrying costs (mortgage, taxes, insurance, maintenance) while the others have not. The paying owner wants out and wants credit for the contributions.
Property held in tenancy in common. Multiple co-owners with separate, sometimes unequal interests, where one owner's interest is now blocking what the others want to do.
New York adopted the Uniform Partition of Heirs Property Act (UPHPA), which provides additional protections for "heirs property" — property held by family members who inherited the property as tenants in common. The UPHPA addresses concerns that traditional partition statutes were sometimes used to force family members out of inherited property at below-market prices.
Key UPHPA protections include:
The UPHPA changes how heirs property partitions proceed in New York. Partition attorneys handling heirs property cases must understand the specific procedural requirements.
One of the most important aspects of a partition case is the accounting between co-owners. The court calculates credits and charges that adjust the eventual distribution. The accounting can shift the result substantially:
The accounting is often more contentious than the partition itself. Documenting contributions over many years is challenging. Records may be incomplete. Different owners may dispute who paid what. The partition attorney works with the client to assemble the documentation that supports the accounting claims.
The vast majority of partition cases settle before reaching court-ordered sale. The settlement is typically a buyout — one co-owner buys the others out at a negotiated price. The buyout can take various forms:
The partition attorney's negotiation skills are particularly important here. Understanding the strength of the client's position in the litigation, the realistic value of the property, the cost of continued litigation, and the other side's interests are all needed to reach a fair settlement.
When settlement is not possible, the case proceeds to court-ordered sale. The court appoints a referee to handle the sale. The referee:
The sale process typically takes six months or more from the order directing sale to closing. Costs (broker commissions, referee fees, attorney fees, recording fees, title clearance) come out of the proceeds.
A typical New York City partition case takes from 12 to 24 months from filing to closing, depending on whether the case settles, how contested the accounting is, and the court's calendar. Highly contested cases involving full trial can extend longer.
Total costs across all parties in a typical case run from $20,000 to $50,000 or more. The cost is generally proportional to the contentiousness of the case. Settling early saves significant money for all parties.