Detailed Answer
This section explains how the money from a court-ordered sale of jointly owned real estate is distributed and how you can get your share under Alaska law. This is educational information only and not legal advice. For legal advice about your situation, consult a licensed Alaska attorney.
How distribution generally works after a court-ordered sale
When a court orders a partition sale of co-owned real estate, the court or a court-appointed officer (often a commissioner or referee) conducts the sale and produces net proceeds (sale price minus sale costs). The court then issues a final order that determines how the net proceeds are divided among the co-owners.
Key points about the distribution of net proceeds:
- Ownership share. The baseline rule is that net proceeds are divided according to each co-owner’s legal interest in the property (for example, equal shares for two co-tenants holding 50/50). The court uses the ownership interests shown in deeds or proven in court.
- Payment of priority claims. Any mortgages, tax liens, or recorded liens that have legal priority against the property are normally paid from sale proceeds before distribution to co-owners.
- Reimbursements and credits. A co-owner who paid for necessary expenses (mortgage payments, property taxes, repairs, or improvements) may seek reimbursement or an equitable credit from the proceeds if the court finds those payments were necessary and properly documented. The court determines what is reasonable to credit.
- Costs, fees, and commissions. Sale costs (advertising, real estate commission, court costs, and court-appointed officer’s fees) are deducted from the sale price to create the net proceeds (the “pot” to be divided).
Practical steps to get your share
- Confirm the court’s distribution order. The court’s final judgment or order in the partition case will state how the proceeds are to be divided. Get a certified copy from the Superior Court clerk if needed.
- Provide any required information to the clerk or escrow agent. The order may direct the clerk or an escrow agent to disburse funds. The clerk or escrow agent typically needs identity verification and sometimes tax forms (for example, a W-9 if they will issue a 1099). Provide those documents promptly.
- Resolve liens or claims. If a third party claims a right to part of the proceeds (such as a mortgage holder or a judgment lien), the court will usually resolve that before distribution. If you believe a creditor’s claim is incorrect, raise that in court or seek your attorney’s help.
- Accept payment as directed. After the court signs the distribution order, funds will be disbursed by the clerk of court or the appointed escrow agent to the persons entitled to them. If a co-owner refuses a payment, the court can often be asked to hold funds in the court registry or to issue other directions to complete distribution.
- If someone refuses to pay or to accept their share, ask the court for enforcement. If a party won’t comply with the court order, you can file a motion for contempt, an enforcement motion, or a turnover order to compel compliance.
Who decides credits and reimbursements?
The court decides any equitable credits and reimbursements. Typical credits include payments a co-owner made for:
- Mortgage installments or property taxes paid to preserve the property;
- Necessary repairs or costs to prepare the property for sale;
- Improvements that increased the property’s value (but the court may limit recovery to the value added, not full cost).
You should collect receipts, bank statements, cancelled checks, or invoices to prove these payments. Without proof, the court may deny a credit claim.
What if the sale produced less than the liens and costs?
If the sale proceeds do not cover mortgage(s), tax liens, and sale costs, then the holder of any remaining unsecured claim may seek collection against the co-owners according to their agreement and the lien priority. The court may allocate any shortfall based on lien priority and ownership interests.
Where to look for Alaska-specific procedures and forms
Alaska courts handle partition actions in Superior Court. For practical information on the procedure and forms, see the Alaska Court System self-help resources on partition and civil cases:
- Alaska Court System main site — look under Superior Court and self-help resources for partition information.
- Alaska Statutes — use this site to search statutes and court-rule citations that may apply to civil and property actions.
Timing and practical expectations
Expect the partition process to take months, often longer if there are disputes over liens, reimbursements, or ownership shares. After the sale closes, distribution typically follows within weeks, assuming there are no outstanding disputes or claims to resolve.
When to get a lawyer
Consider hiring an attorney if:
- There are competing liens or unclear priorities;
- A co-owner disputes ownership shares or claims large credits;
- Someone refuses to accept or disburse the funds as ordered; or
- The legal issues or claims are complex (estate, divorce, business ownership overlaps).
Helpful Hints
- Keep detailed records: invoices, canceled checks, bank records, and receipts for any payments you made on the property.
- Get the court’s distribution order in writing. A certified copy from the clerk helps when dealing with escrow agents, banks, or third parties.
- Provide identification and any tax paperwork the paying agent requests to avoid delays.
- If a mortgage or tax lien exists, confirm payoff amounts and priority before expecting full distribution.
- Ask the clerk whether funds will be disbursed by check, wire, or paid into the court registry. Each method has different timing and documentation requirements.
- If a co-owner claims reimbursement for repairs or improvements, ask for written proof and a court order specifying the credit before the distribution occurs.
- If you are unsure about how to value credits or how liens affect the distribution, consult an Alaska attorney experienced in real estate or civil litigation.
Disclaimer: This article explains general principles and Alaska procedures for partition sales. It is not legal advice. For advice specific to your situation, consult a licensed Alaska attorney.