The Real Property Divorce: California's Partition Law
Business partners and groups of two or more individual owners often own property in California as “tenants in common”—a legal term denoting shared ownership. Co-ownership of real property outside of marriage is a common scenario and can be a great way of investing in and owning California real estate.
But what happens when the partners or co-owners have a serious dispute or disagreement? Can one co-owner force a division or sale of the property? The answer is yes, with a few rare exceptions. In fact, seeking a partitioning of real property in co-ownership is basically a matter of right under California law. The legal term for this is a “partition action.” A partition action is expressly authorized by statute in California and partition cases are relatively common.
A partitioning of real property can happen in one of several ways: (1) a partition by physical division, where the property is capable of being fairly and equitably divided; (2) a partition by sale (the most common type of partition case), resulting in a division of the sale proceeds; or (3) a partition by appraisal, usually resulting in one party being bought out by the other.
The vast majority of partition cases are resolved by way of a negotiated settlement agreement, whereby the property is placed on the market and sold at or near its full market value. The proceeds are then divided according to the parties’ agreement and the partition action is dismissed. But there are many possible pitfalls in this process and it is critically important to have an experienced partition lawyer on your side.
If you have questions about the partition process under California law, contact us at Adair Law Corporation. We will evaluate your case free of charge and, if appropriate, assist you in getting your property divided and/or sold in the most efficient manner possible.
By: Lance A. Adair
Founder and Principal Attorney