Detailed Answer

This FAQ explains how to receive your share of the net proceeds after a court-ordered partition sale of a co-owned house under Alabama law. This explains the usual court process, what the court pays first, how ownership shares are determined, and practical steps you can take to make sure you get your money. This is general information only and not legal advice — if you need advice about your specific situation, consult a licensed Alabama attorney.

How partition sales work in Alabama — the basics

A partition action is a lawsuit one co-owner files to divide or sell property when co‑owners cannot agree. In many cases the court orders a sale (a partition by sale) and directs that the house be sold, usually by a court-appointed commissioner or sheriff. The sale proceeds are deposited with the court (often in the clerk’s registry) and the court issues an order distributing the net proceeds — that means sale price minus allowable charges and liens — to the parties in accordance with the court’s determination of ownership interests and priorities.

Who gets paid first from the sale proceeds?

Costs of the sale and administration: court costs, fees for the commissioner or sheriff, advertising and sale expenses, and any sale-related taxes.
Senior liens and mortgages: recorded mortgages and other valid liens (tax liens, secured judgments) are typically paid in the order of priority established by Alabama law and by the order of recordation.
Attorney’s fees and costs: the court may award attorney fees and costs if the pleadings or statute allow; the court decides whether these come out of the proceeds.
Reimbursements and equitable credits: a party who paid taxes, insurance, or necessary repairs may ask the court to be reimbursed from the proceeds. The court will decide on equitable credits or reimbursements before distributing the remainder.
Net remainder: after payments above, the court distributes the remaining balance to co‑owners according to their ownership shares as determined by the court (tenants in common percentage shares, joint tenants, or as otherwise decreed).

How the court determines each owner’s share

The court will look to the legal title and the facts before it to determine each party’s share. Typical rules:

Tenants in common: the court distributes net proceeds according to each owner’s percentage interest unless the parties prove another arrangement.
Joint tenants with right of survivorship: the surviving joint tenant retains the share of a deceased co-owner; partition issues often arise before death.
Contributions and equitable adjustments: if one co-owner can prove they paid more than their share for mortgages, taxes, repairs, or improvements, the court may grant reimbursement or credit before dividing the remaining proceeds.

Typical timeline and steps to get your share

Sale occurs and funds are deposited with the court clerk or registrar of the court.
The clerk files an account of sale and the commissioner or sheriff files a return showing sale price, buyers, and costs.
Creditors or lienholders may file claims to be paid from proceeds. The court resolves those claims or orders payment from the registry.
The court issues a decree or order of distribution specifying payments (liens, costs, reimbursements) and the final distribution to each owner.
The clerk then pays out the distributed amounts to owners (or to their attorneys if required). If the court deposits funds into the registry for safekeeping, owners may need to submit a disbursement order or claim to the clerk to receive their share.

What to do if you haven’t received your share

Request the court docket and the order of distribution. The court’s judgment or order explains how the net proceeds were divided.
Ask the clerk of court for the status of the registry disbursement and any required paperwork to receive your check.
Check for recorded liens or mortgage payoff requirements that might reduce your share.
If another co-owner received all the funds improperly, you can move the court for enforcement of the distribution order or file a motion to compel payment under the original decree.
If there is a dispute about credits (repairs, taxes, mortgage payments), ask the court for an accounting or clarification; you may need to submit evidence of your payments.

Common complications and how they affect distribution

Unpaid mortgage or liens: mortgages recorded before the partition sale generally remain enforceable against the proceeds and get paid in priority order.
Claims by creditors after the sale: the court may allow creditors to be paid from the proceeds if they properly assert claims and the court finds them valid.
Disagreements about ownership percentages: the court resolves ownership questions, sometimes requiring title evidence or testimony about contributions and agreements.
One co-owner paid expenses or made improvements: request an equitable credit; keep receipts and records to support reimbursement requests.

Practical steps you should take right now

Obtain a certified copy of the final judgment or order of distribution from the clerk of the court where the partition was handled.
Ask the clerk for a statement of the clerk’s registry: date funds were deposited, who is receiving what, and any liens paid from the registry.
Gather records that prove your ownership percentage, payments you made toward the property (mortgage, taxes, insurance, repairs), and any agreements among owners.
If the court ordered funds paid to you, provide the clerk with any proof of identity or payment instructions the clerk requires (e.g., notarized release, W‑9 for tax reporting) so the clerk can cut your check or wire funds.
If the distribution has not occurred within a reasonable time after the sale, file a motion with the court asking the judge to issue an order directing the clerk to disburse funds according to the decree.
Consult a licensed Alabama attorney if the distribution is contested, if liens remain unresolved, or if a co‑owner refuses to comply with the court’s order.

Relevant Alabama resources and statutes

Alabama’s statute and court rules govern partition actions and distribution procedures. For Alabama statutory language and the Code of Alabama, see the Alabama Legislature website: https://www.legislature.state.al.us/. For practical court information and local forms, visit the Alabama Judicial System: https://judicial.alabama.gov/. For state tax questions related to sale proceeds, contact the Alabama Department of Revenue: https://revenue.alabama.gov/.

Tax and reporting notes

Sale proceeds may have tax consequences (capital gains, basis adjustments, reporting of sale proceeds). The partition sale may generate a Form 1099 or other reporting; speak with a tax professional about whether you owe federal or state tax on your share.

Helpful Hints

Keep all receipts and records of payments you made for mortgage, taxes, insurance, repairs, or improvements — the court may award reimbursement.
Ask the clerk for a written accounting showing sale price, liens paid, fees, and the final net amount for each party.
If you expect a distribution, provide the clerk immediate written instructions for how you want to receive payment (mailing address, wire instructions, or attorney contact information).
Monitor the court docket after sale for filings by lienholders or for an order of distribution; timely objections are important if you disagree with credits or payments.
Get legal help early if a lienholder claims priority or if co‑owners dispute equitable credits; resolving these issues in advance speeds distribution.
Be prepared for a delay: paying off liens, resolving claims, and finalizing accounting can add weeks or months before funds are disbursed.
Tax planning: consult an accountant about capital gains, basis, and any withholding or reporting obligations related to the distribution.

Disclaimer: This article provides general information about partition sales under Alabama law and is not legal advice. Laws change and every case has unique facts. For advice about your specific situation, contact a licensed Alabama attorney.