Detailed Answer
When two or more people own property together and agree to sell it jointly, one co-owner may front costs—mortgage payments, taxes, insurance and maintenance—while the other does not. Under Connecticut law, each co-tenant is entitled to an equal share of expenses (unless your agreement says otherwise). If one owner pays more than their share, they can seek reimbursement through negotiation or, if necessary, a court action.
What Are Carrying Costs?
- Mortgage interest and principal
- Property taxes
- Homeowner’s or hazard insurance
- Utilities and maintenance
- HOA or condominium fees
Step 1: Track All Expenses
Keep detailed records of every payment you make on the property. Save receipts, bank statements and cancelled checks. Create a simple spreadsheet listing dates, amounts and categories. Accurate documentation is critical.
Step 2: Calculate Your Co-Tenant’s Share
Divide total carrying costs by the number of co-owners. For example, if you and one other owner each hold a 50% interest, split expenses 50/50. Subtract the portion your co-owner has already paid (if any) to arrive at their balance owing.
Step 3: Request Reimbursement
Send a written demand detailing the total costs, the co-owner’s share and a deadline for payment. Include copies of receipts and your calculation. A polite but firm demand often prompts reimbursement without litigation.
Step 4: File a Partition Action if Necessary
If your co-owner ignores the demand or disputes the amount, you can ask the Superior Court for a partition and accounting. Under Conn. Gen. Stat. § 47-42, the court may order:
- A forced sale of the property
(https://www.cga.ct.gov/current/pub/chap_832.htm#sec_47-42) - A buy-out of one owner’s interest with appropriate credit for expenses paid
- An equitable division of net proceeds after sale and reimbursement
The court can adjust for improvements or disproportionate contributions to ensure fairness.
Helpful Hints
- Include a reimbursement clause in your joint sale agreement to set expectations upfront.
- Communicate costs and calculations monthly to avoid disputes.
- Use written notices (certified mail or email with read receipt) for all cost-sharing requests.
- Keep personal and property finances separate—never co-mingle funds.
- Consider mediation before filing court papers to save time and cost.
Disclaimer: This article is for educational purposes only and is not legal advice. Consult a licensed Connecticut attorney for advice tailored to your situation.