Shackin’ Up & Breakin’ Up – Partition Actions
Unmarried couples sometimes go in together on a home purchase only to break up and then find out how hard it is to force their former partner to sell the home. The end result is a lawsuit to force the sale of the home. This type of lawsuit is called a Partition Action. To avoid this fiasco requires a written agreement about what to do if love fades into a breakup.
While in theory a partition action is relatively simple, in practice it can be complex. A partition action is a request to sever the unity of possession by dividing the real estate. In most situations, severing the parties’ property interests is not possible or practical, so the court orders the sale of the real estate.
A partition action gets expensive when one party refuses to sell or there is an argument about how to divide the proceeds. A partition action is necessary because one owner refuses to sell, so by definition there is expense. While filing the partition action can motivate the non-selling owner to change his or her mind, there is no guarantee.
When unmarried couples break up, there is usually a disagreement about who paid for what and how the expenses should be divided. In a partition action, the division of expenses and home sale proceeds is almost always in dispute. Even with good records about who paid for what regarding the home, that is not the end of the analysis. Couples do not split all expenses, equally. One person may have paid the mortgage, but the other may be buying the groceries and paying other medical bills. When couples cannot agree, all of this must be sorted out by the Court.
To avoid this situation requires a written agreement. Even if the agreement is not perfect, Courts are usually very willing to enforce a written agreement regarding selling a home and splitting proceeds or losses. While not very romantic, a written agreement about how and when to sell a home can save a person thousands in legal fees.