7 Common Reasons for Filing a Partition Action

If co-owners of a property can’t agree on property management, division, or sale strategies, partition actions can be initiated. 

Often a last resort, this legal process lets co-owners resolve such matters legally. It usually leads to property selling and a proportional division of proceeds.  

So, if you’re wondering which reasons are fit to file a partition action, here’s a list of the top ones!

1. Disagreement among inheritors

The most common reason behind filing partition action is disputes among inheritors after the original owner’s death.

This happens if the deceased property owner does not make a will. Sometimes, disputes arise when the will says that the property must be divided equally, but one or more inheritors feel they deserve more than the rest.

Heirs might also have conflicts over whether they’ll keep the property or sell it. If it’s kept, management-related disputes will arise. If they receive any revenue from it, the revenue division also creates confusion.

Since property division among inheritors is quite complicated, seek help from reputable partition lawyers Los Angeles with proven experience. Don’t find any lawyer who has worked with only a handful of partition cases.

They must be experienced and knowledgeable about real estate cases. Look up their reputation online and ensure they have a good impression on most clients.

2. Business partnership dissolution

Often, in business partnerships, partners may jointly own real estate or build their business on a jointly bought land or structure.

When such business partnerships dissolve, they may have disagreements on what to do with the property – sell it or hold on and continue getting just the revenue without investing further.

In such scenarios, they file a partition action if they can’t resolve matters with communication. This lets them legally settle whether they must divide or sell the property. It ends the financial dispute among partners, and they can part ways peacefully.

3. Asset division after divorce

Married couples invest in their new home and other real estate together. Sometimes, one of them buys it but puts both of their names in the ownership documents.

In the event of divorce and separation, such joint property can become an argumentative issue. Especially if the pair can’t agree on whether they want to keep it, sell it, and divide profits, or one buys out the other’s share, a partition action is the answer.

4. Dispute about investment strategies

When multiple people own a property, they may have different investment plans in mind. For instance, one may want to sell the property immediately and divide the profits. Another might want to wait until the property value increases and then sell. The third might prefer generating income by renting it.

Owing to such differences, effective property management becomes impossible. In this case, co-owners may file partition action to resolve the issue.

5. Property improvement disagreements

Every property needs regular maintenance, repairs, and improvements with time to comply with state and local laws and upkeep its quality.

However, there may be disagreements regarding how much to spend on them, which areas to improve, or who will bear which cost. 

One might want to renovate the entire property, which can be $10-250 per square foot. However, others want to spend the bare minimum.

If co-owners face such disputes and can’t agree with anything, the solution is filing a partition action.

6. Co-owners non-cooperation

In some cases of joint ownership, one or more of the co-owners may not undertake their share of the duties.

This may include non-cooperation in managing property, refusing to pay for maintenance expenses, neglecting property, or making property-related decisions without other owners’ consent.  

If they refuse to cooperate, this can lead to financial and legal troubles for the remaining co-owners. Thus, non-cooperation is another major reason for file partition action.

The remaining co-owners can either demand a property sale or division. This way, they won’t incur financial or legal burdens due to the non-cooperating co-owner’s actions.

7. Financial differences

Sometimes, one co-owner can’t keep up their share of the property management, such as taxes and insurance, due to financial concerns. They struggle to cover their share, but the remaining co-owners have no issue.

The financially stronger co-owners may cover the expenses initially but feel burdened with time. This causes disputes, making it a significant reason for filing partition actions.

Conclusion

People also file partition actions due to personal fallout or a desire to liquidate assets for cash. Despite reasons, partition actions always ensure fair and clear outcomes. So, contact a strong partition action legal team for a quick process!