How can I get my share of the net proceeds after the partition sale of a co-owned house? (AR) | Arkansas Partition Actions | FastCounsel
AR Arkansas

How can I get my share of the net proceeds after the partition sale of a co-owned house? (AR)

FAQ: Receiving Your Share of Net Proceeds from a Partition Sale in Arkansas

Disclaimer: This is general information only and not legal advice. For advice about your specific situation, consult a licensed Arkansas attorney.

Detailed Answer

If co-owners cannot agree about what to do with jointly owned real estate, any co-owner may ask the Arkansas circuit court to force a partition sale. In Arkansas, partition actions and sale procedures are governed by the statutes that allow a court to divide real property in kind or require sale and distribution of proceeds. See the Arkansas Code on partition (Title 18, Chapter 60) for statutory authority and procedure: Arkansas Code, Title 18, Chapter 60.

Here is how the process normally works and how you get your share of the net proceeds:

  1. Filing the Partition Action.

    A co-owner (plaintiff) files a partition suit in the circuit court where the property is located. The court serves all co-owners and interested lienholders. If the court orders sale rather than physical division (partition in kind), it will direct how the sale is conducted and how proceeds are distributed.

  2. Sale and Payment of Liens/Costs.

    The property is sold either at public auction or private sale under court supervision. From the gross sale price the court (often through a commissioner or clerk) pays:

    • Recorded mortgage liens and other prioritized liens (tax liens, mechanic’s liens that have priority).
    • Reasonable costs of sale, appraisal, advertising, escrow and commissions.
    • Court costs and any attorneys’ fees allowed by the court.
    • Adjudicated claims such as judgments against the property where applicable.

    What remains after satisfying liens and costs is the net proceeds.

  3. Accounting and Distribution.

    The court typically requires a formal accounting showing gross sale proceeds, deductions (liens, taxes, sale costs, fees), and the net amount to be distributed. The court then issues an order allocating the net proceeds among the co-owners according to their legal ownership shares (for example, equal shares if tenants in common with equal interests), unless the court orders a different allocation because of equitable claims (contributions for improvements, payment of mortgage by one co-owner, waste, or other offsets proven in the case).

  4. How You Actually Receive Money.

    After the court signs the distribution order, the clerk or appointed disbursing officer will pay each co-owner. If the court places funds in the court registry pending final disputes, you may need to file a motion to withdraw your share or comply with the clerk’s procedures (identity verification, providing a current address, completing any tax withholding steps). If a co-owner is owed amounts for liens or lienholders require payoff documentation, the clerk will disburse directly to satisfy those obligations first.

  5. Offsets and Special Claims to Be Aware Of.

    Several items can reduce your net share:

    • Outstanding mortgages and priority liens — these must be paid from sale proceeds.
    • Costs and commissions associated with marketing and selling the property.
    • Creditable payments made by another co-owner (e.g., one co-owner paid the mortgage, taxes, or made substantial improvements). The payor can ask the court for contribution so the distribution reflects equitable adjustments.
    • Rents and profits or damages for waste — the court can award credits or charges based on use and maintenance history.
  6. What if a Co-Owner Objects to Distribution or Disappears?

    If a co-owner objects to the accounting, they can file an objection, and the court resolves disputes before distribution. If a co-owner cannot be located, the court may order their share held in the court registry or may allow distribution to another party under court-approved procedures. The court has mechanisms to prevent a single co-owner from blocking payment indefinitely.

Bottom line: To get your share, you must be sure the court orders distribution after the sale and accounting are complete. If the order directs payment, the clerk or disbursing officer will issue your funds after any required verifications and after priority claims are satisfied.

Helpful Hints

  • Hire an Arkansas attorney experienced in real estate partition to protect your share and present any claims for contribution, reimbursement, or liens.
  • Collect paperwork early: deed, mortgage statements, tax bills, receipts for repairs/improvements, rent ledgers, and any written agreements among owners.
  • Determine legal ownership type (tenancy in common vs. joint tenancy). Ownership percentages control how proceeds are split unless the court adjusts for equitable reasons.
  • Check recorded liens before sale — mortgages and tax liens usually take priority and will reduce net proceeds.
  • If you want the property instead of money, offer to buy out the co-owners before the sale — courts sometimes prefer a buyout if parties agree.
  • Keep proof of payments you made on the property (mortgage, taxes) so you can ask the court for contribution if appropriate.
  • Expect some delay — the court must supervise sale, allow time for objections, and complete an accounting before final distribution.
  • If funds are held in the court registry, follow the clerk’s rules for withdrawal (ID, form completion) so distribution is not delayed.

If you have questions about how Arkansas law applies to your facts or need help getting the court to distribute proceeds, consult a licensed Arkansas attorney. This article is informational only and is not a substitute for legal advice.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.