Getting Your Share of Net Proceeds After a Partition Sale in Florida
Detailed Answer — how distribution works and how you get paid
This explains how a court-ordered partition sale of a co-owned Florida house results in a payment to each co-owner, what affects the amounts, and the normal steps you must take to receive your share. This is an educational overview, not legal advice.
1. What is a partition sale and the basic legal framework
A partition action is a lawsuit one or more co-owners file to divide real property when they cannot agree on continuing joint ownership. In Florida, partition actions and the sale of co-owned real estate are governed by Chapter 64 of the Florida Statutes. For the statutory text, see: Florida Statutes, Chapter 64.
2. Who gets paid first from the sale proceeds
When the court orders a sale, the proceeds first pay liens and valid encumbrances (for example, mortgage holders), sale-related expenses (e.g., realtor commission, closing costs), taxes, and court costs. Any remaining amount is the “net proceeds.” The net proceeds are distributed according to the court’s decree — usually based on each owner’s legal ownership share (for example, 50/50 if tenants in common each own half), unless the court orders adjustments for credits, liens, or equitable claims.
3. Typical timeline and where the money sits
After the property sells, the buyer’s funds typically go to the closing agent or the court registry. If the sale was ordered by the court, the court or its appointed clerk/commissioner often holds the funds until the judge signs an order directing distribution. Expect several weeks to a few months between sale and final disbursement while payoffs, liens, and costs are verified.
4. Steps you should expect to receive your share
- Verify the court’s final sale order and the signed decree that authorizes distribution of the proceeds.
- Confirm the clerk/closing agent shows the gross sale amount and itemized deductions (liens, mortgage payoffs, commissions, taxes, costs).
- If funds are in the court registry, file or request a proposed order of distribution if the court or clerk has not already sent one. The judge must sign the order releasing funds.
- Once the court signs the distribution order, the clerk or closing agent issues payment to each co-owner according to the order (certified check or wire transfer).
- If you disagree with the accounting (for example, if you believe certain liens were paid incorrectly or costs were inflated), you must file objections or a motion with the court before the court signs the distribution order.
5. What can reduce your share
- Mortgage and lien payoffs take priority and reduce net proceeds.
- Realtor commissions, closing costs, sale-related legal and commissioner fees, and property taxes are deducted.
- Court-ordered credits: the court can adjust distribution if a co-owner has claims for reimbursement (for example, one co-owner paid mortgage, repairs, or taxes and seeks credit).
- Costs of partition itself (filing fees, commissioner’s fees, appraisal) are typically deducted or charged against the proceeds.
6. Examples (hypothetical) to illustrate calculation
Simple example — two co-owners, equal shares (50/50):
- Sale price: $300,000
- Mortgage payoff: $100,000
- Realtor commission (6%): $18,000
- Closing and other costs: $5,000
- Net proceeds: 300,000 – 100,000 – 18,000 – 5,000 = $177,000
- Each owner’s share (50%): $88,500
If ownership is unequal (for example, 70/30), distribution normally follows those percentages unless the court orders a different allocation for equitable reasons.
7. Common complications
- Priority liens or judgment creditors may claim proceeds. Lenders typically receive payoff first.
- One co-owner may file cross-claims for contribution or reimbursement; the court resolves these before distribution.
- Homestead status may limit partition or affect how the property is treated—Florida law offers special homestead protections; consult an attorney if homestead is an issue.
- Tax consequences: sale may generate reportable capital gain (Form 1099-S). Talk to a tax advisor about reporting and withholding issues.
8. How to protect your right to a fair share
- Keep documentation of your ownership interest (deed), payments you made (mortgage, taxes, repairs), and any agreements between co-owners.
- Before sale, request an accounting or proposed distribution from the court or closing agent to confirm deductions.
- If you believe you are owed reimbursement (for mortgages you paid, repairs, etc.), file your claims with the court during the partition case and provide supporting evidence.
- Attend hearings or have an attorney appear for you to protect your rights in court proceedings.
9. If you don’t get paid as ordered
If the court ordered distribution and you do not receive your money, you can ask the court to enforce its order. The clerk can explain the mechanics for disbursement. If someone wrongfully withholds funds or the distribution accounting looks incorrect, you will likely need to return to court and may request contempt or other enforcement relief.
10. Where to look in Florida law
The main statutory guidance is in Chapter 64 of the Florida Statutes (actions for partition and procedure). See: Florida Statutes, Chapter 64.
11. When you should consider hiring an attorney
Get an attorney if you face any of the following: competing lien claims, disputes over ownership percentage, allegations of misconduct by a co-owner, homestead questions, or complex claims for reimbursement. An attorney can prepare motions, gather evidence, and represent you at hearings to help secure your share.
Disclaimer: This article provides general information about Florida partition sales and distribution of proceeds. It is not legal advice and does not create an attorney-client relationship. For case-specific guidance, consult a licensed Florida attorney.