What options do I have to divide or force the sale of co-owned farmland when heirs can’t agree?
Short answer: In Arkansas you should first try negotiation or mediation. If that fails, a co-owner can ask a circuit court for a partition action. The court will try to divide the land physically (“partition in kind”) when practical; if not practical, the court can order a sale and divide the proceeds. This page explains the practical steps, legal process, likely outcomes, costs, and how to prepare.
Disclaimer
This article explains general Arkansas law and common practice. It is educational only and is not legal advice. For advice about your specific situation, consult a licensed Arkansas attorney.
Detailed answer — how division and forced sale work in Arkansas
1. Confirm ownership and legal relationships
Before taking action, identify how the heirs own the farmland. Most inherited property is held by heirs as tenants in common, which means each owner holds a fractional share that can be sold or divided without the others’ consent. If the deed or will created a joint tenancy with rights of survivorship, ownership rules differ, so check the deed, will, trust documents, and the county land records.
2. Try non‑court options first (cheaper and faster)
- Negotiate a buyout: One or more co-owners buy the shares of others at an agreed price (often based on an appraisal).
- Mediation: Neutral mediator helps heirs reach a practical division or sale plan. Arkansas courts commonly encourage mediation before trial.
- Create an operating agreement or entity: Form an LLC or partnership that holds the farm; set rules for management, income distribution, and future sale.
- Lease or manage the land: Agree to lease the farm to a family member or tenant and split the income until heirs decide.
- Divide responsibilities and cash adjustments: If the land can be split, owners can agree to unequal acreage and pay money to equalize values.
3. If heirs can’t agree: file a partition action in Arkansas circuit court
When negotiation fails, Arkansas law allows any co-owner to ask the circuit court for a partition. The court has two main remedies:
- Partition in kind (physical division): The court prefers to divide property physically when it can be done fairly without substantially reducing value. Physical division works better when the parcel can be split into viable tracts for farming.
- Partition by sale (forced sale): If the land cannot be fairly divided (because of size, shape, improvements, or other practical problems), the court can order a sale, either by a commissioner appointed by the court or at public auction, and distribute the net proceeds among the owners according to their ownership shares.
Arkansas statutory rules govern partition procedure and the remedies a court may order. See Arkansas Code, Title 18 (Property), Chapter on partition for statutory text and process details: Ark. Code Ann., Title 18, Ch. 60 (Partition).
4. What the court process looks like
- One co-owner files a complaint for partition in the circuit court in the county where the land is located.
- The other owners and interested parties are served and can defend or counterclaim.
- The court may order appraisals and appoint commissioners or referees to evaluate and, if possible, physically divide the property. The court considers factors like access, value, improvements, and farming practicality.
- If sale is ordered, the court supervises the sale process, confirms a purchaser or authorizes a public auction, deducts costs (attorney fees, appraisal, commissions, unpaid taxes, mortgages, and sale expenses), and distributes net proceeds by ownership share.
5. Costs, timeline, and likely outcomes
Partition suits vary in time and cost. Typical realities:
- Time: A straightforward partition can take several months; contested cases can take a year or more.
- Costs: Court filing fees, attorney fees, appraisals, survey and title work, commissioner or auction costs. These come out of the property or sale proceeds.
- Outcome: If the land is divisible without materially reducing value, the court may divide it. If not, expect a sale.
6. Special issues for farmland
- Crop and lease seasons: Court orders often take current leases, crop cycles, and tenant rights into account; interim rental income may be accounted for before final distribution.
- Improvements and improvements’ credits: If some co-owners paid for improvements, the court may account for contributions when dividing proceeds.
- Conservation easements and government programs: Easements, CRP, or other program enrollment can limit division or sale; identify encumbrances early.
- Mortgages and liens: Outstanding mortgages and liens typically must be satisfied from sale proceeds or addressed by the owners before division.
7. Practical tactical tips
- Get a recent professional appraisal and a current boundary survey before litigation.
- Gather deeds, wills, trust documents, death certificates, tax records, leases, and any written agreements among owners.
- Preserve goodwill by offering structured buyout terms (installment payments, promissory note) to co-owners if you want to keep the farm in the family.
- Consider mediation or collaborative law early — courts often order or encourage ADR to reduce friction and expense.
8. Where to look in Arkansas law
Arkansas codifies partition remedies in its property code. For statutory language and procedures, see Title 18 (Property), Chapter on partition on the Arkansas Legislature’s website: https://www.arkleg.state.ar.us/ArkansasCode/Title/18/Chapter/60. For court process and local rules, check the Arkansas Judiciary website: https://www.arcourts.gov.
Helpful Hints
- Start by clarifying ownership: deeds and estate papers often settle whether heirs are tenants in common or hold another interest.
- Obtain a current professional appraisal and a boundary survey; these reduce disagreements about value and division feasibility.
- Use mediation early — it reduces legal costs, preserves relationships, and gives parties more creative options than a court.
- If you want to keep the farm, prepare a realistic buyout plan (price, financing, tax consequences) to present to other owners.
- Before filing suit, inventory encumbrances: mortgages, liens, conservation easements, and lease terms that affect sale or division.
- Budget for legal and court costs; forced sale often reduces net returns because of fees and sale discounts.
- Talk to an Arkansas real estate attorney to review documents and explain likely court remedies for your exact facts.