Detailed Answer: How to get your share of the net proceeds after a partition sale in Colorado
When co-owners of real estate cannot agree, one owner can ask the court to force a sale through a partition action. After the court orders a partition sale, the court or the officer handling the sale will collect the sale proceeds, pay liens and sale costs, and then distribute the remaining net proceeds to the co-owners according to their ownership interests (or according to the court’s decree). This article explains the typical steps to receive your share of the net proceeds in Colorado and what to do if the distribution is delayed or disputed.
What happens in a Colorado partition sale?
In Colorado, a partition action is a court proceeding that divides property among co-owners either by physical division (partition in kind) or, more commonly with houses, by selling the property and dividing the proceeds. The court supervises the sale process or appoints a commissioner to sell the property. After the sale, the court orders the distribution of proceeds.
For general statutory information about Colorado laws and partition actions, see the Colorado Revised Statutes and use the legislature’s search to find the partition provisions: leg.colorado.gov (search: partition).
Step-by-step: How to get your share
- Confirm the court order or decree. The court will issue an order showing the sale, the total gross proceeds, approved costs, liens, and the final net amount to be distributed. Obtain a certified copy of that order from the clerk’s office.
- Review the statement of distribution. The officer (sheriff, commissioner, or clerk) who conducted the sale should prepare a distribution statement showing exactly how proceeds are applied: mortgage payoff(s), tax liens, homeowner association liens, commissions, advertising, court costs, and any other allowed expenses. Confirm the net amount and your percentage (for example, a 50% owner gets 50% of net unless the court ordered a different split).
- Confirm lien payoffs and priorities. Liens with priority (mortgage, tax liens) are paid from the sale proceeds before co-owners receive funds. If a lien holder receives less than was owed, the court may order distribution of the remaining funds accordingly. Ask the clerk for a copy of paid lien releases or payoff notices.
- Request payment from the clerk or receiver. Colorado courts or the appointed receiver usually pay co-owners directly by check or by instructing the county treasurer or other payor. If the court’s order names the payees, present identification and a copy of the order to the clerk or receiver and request disbursement.
- If funds were deposited into the court registry, file a motion for distribution. Sometimes sale proceeds are held in the court registry. If you do not receive your share automatically, you (or your attorney) may file a short motion asking the court to issue an order directing payment to you. The court typically grants distribution in line with the original sale order unless a new dispute exists.
- Resolve withholding for liens, taxes, or disputes. If someone claims an offset (for example, unpaid expenses or a lien not previously accounted for), the court will decide whether to hold back funds. You can ask for an accounting or notice of claimed offsets. If the court finds the offsets valid, your distribution will be reduced accordingly; if not, the court will order payment to you.
- If payment is delayed or refused, seek enforcement. If a clerk, receiver, or co-owner refuses to release funds after the court orders distribution, you can return to the court and request enforcement—often by filing a motion to compel distribution, a contempt motion, or a writ of execution depending on the situation and local rules.
Timing: How long until you get paid?
Timing depends on several factors: whether sale proceeds were cleared, whether lien payoffs and taxes needed resolution, and whether anyone appealed the sale or distribution order. In routine cases you may be paid within weeks after closing; in contested matters or when appeals are filed, payment can be delayed for months.
Example (hypothetical numbers)
Assume sale price: $400,000. Costs and payoffs:
- Mortgage payoff: $200,000
- Realtor commission and closing costs: $24,000 (6%)
- Property taxes and unpaid HOA fees: $6,000
- Court and administrative costs: $2,000
Gross proceeds: $400,000 − ($200,000 + $24,000 + $6,000 + $2,000) = $168,000 net. If you own 50%, your share = $84,000 (subject to final accounting and any court adjustments).
Common problems and how to address them
- Disputed ownership share or credits: File a motion with the court to clarify ownership interests or credits for improvements/expenses.
- Unknown liens discovered after sale: Request evidence of the lien and ask the court to order the receiver to pay valid liens from the proceeds; contest invalid liens.
- Receiver delays: Ask the court for a status hearing and an order compelling distribution.
- Co-owner refuses to cooperate: The court can enforce its order by contempt or other remedies; file a motion setting the problem out clearly and ask for relief.
When to hire an attorney
If the distribution is straightforward and the clerk’s accounting matches your expectations, you may not need counsel. Hire an attorney if:
- There is a dispute over ownership percentages, credits, or lien validity.
- Proceeds are being withheld without explanation.
- There are complex liens, tax issues, or possible appeals.
- You need help enforcing a court order or pursuing a contempt remedy.
An attorney experienced in Colorado real property and partition actions can file necessary motions, obtain records, and represent you at hearings.
Practical checklist to get your funds
- Obtain and read the court’s sale and distribution order.
- Confirm the distribution statement and final net proceeds.
- Collect copies of paid lien releases and payoff statements.
- Provide required ID and payment instructions to the clerk/receiver.
- If payment does not arrive, file a motion for distribution or enforcement with the court.
Where to find Colorado rules and statutes
Use the Colorado General Assembly’s website to search for statutes and statutory provisions that apply to partition and distribution: leg.colorado.gov (search results for “partition”). You can also request case-specific forms or guidance from the county court clerk where the partition action was filed.
Disclaimer: This information is educational and does not constitute legal advice. Laws change and facts matter. For advice tailored to your situation, consult a licensed Colorado attorney.