Partition is a legal concept and legal action that describes the process of separating or dividing a shared asset such as real estate, business assets, inheritances or investments. It can also refer to the court order that formally ends the collective ownership of the asset.
When it applies to real property, a partition action seeks to divide a single piece of property into multiple units to be owned and managed independently by the various owners who can not agree on how to handle the property collectively. It is often the case that no one owner has the ability or resources to purchase the property in its entirety so the court will step in and determine a fair division of the property among the parties involved.
What Are the Types of Partition?
Partition actions can be divided into three distinct types: partition in kind, partition by sale, and partition by allotment.
Partition in kind requires that the property be divided up and equally distributed amongst all owners.
Partition by sale requires that the property be sold, and the proceeds divided up and shared among all parties.
Partition by allotment is a type of in-kind partition. It involves the court taking an active role in determining how the property should be divided up and assigning each party a specific unit of the property.
How Partition Works and Its Benefits
Partition is initiated when an owner of property files a petition in court, requesting for the sale of the property or division of the property, depending on the type of partition that is needed. Once the petition is filed, the court will order the appointment of a referee who will assess the property and its value.
The referee will then report to the court with recommendations on how to best divide the property amongst all parties. The court will consider the recommendations and enter an order regarding the partition or division of the property.
The primary benefit of a partition action is that it allows owners of property who are not able to agree on how to manage the property to divide it up fairly and move on with their lives. It can also save owners of property unnecessary costs and time by avoiding costly and lengthy litigation.