Getting Your Share of Net Proceeds After a Partition Sale in Idaho
Short answer: After a court-ordered partition sale in Idaho, the court or appointed officer sells the property, pays sale-related costs, pays secured liens and taxes, and then distributes the remaining net proceeds to the co-owners according to the court’s decree and each owner’s legal interest (subject to credits and adjustments). To get your share you must obtain the court’s distribution order, verify the accounting, and request (or sometimes compel) the clerk to disburse funds to you. This article explains how that typically works under Idaho law and what steps to take to secure your payment.
How partition sales work in Idaho (overview)
Partition actions are civil lawsuits that divide or sell property owned by two or more people when they cannot agree. In Idaho, partition procedure is governed by the civil statutes and the court’s orders (see Idaho Code Title 6, Chapter 3 on partition: Idaho Code Title 6, Chapter 3).
Typical sequence:
- A co-owner files a partition action. The court determines whether the property should be physically divided or sold.
- If the court orders sale, it issues an order appointing a commissioner or directing a referee or other officer to sell the property (or it may authorize a sale by public auction or private sale under court supervision).
- The property sells. The sale produces gross proceeds.
- From the gross proceeds, the officer pays allowed expenses: sale costs (commission, advertising), closing costs, court-ordered costs, real estate taxes, and valid secured liens (for example, mortgages and tax liens).
- Any remaining funds — the net proceeds — are distributed according to the court’s decree, which usually follows each owner’s legal share, but the court may adjust shares to account for credits (e.g., one owner paid the mortgage, property taxes, or made improvements).
What affects your share of net proceeds
Your share depends on several factors:
- Ownership interest: The deed (or other title documents) usually establishes the percentage interest (for example, tenants in common may each hold a 50% undivided interest). The court typically starts by dividing proceeds according to these percentages.
- Mortgages and liens: Liens that attach to the property (mortgages, mechanics’ liens, tax liens) must be paid from the sale proceeds before distribution to owners.
- Sale and administrative costs: Costs of sale and court costs come off the top of the gross proceeds.
- Credits and debits among owners: If one co-owner paid mortgage payments, property taxes, insurance, or made repairs or improvements that preserved or enhanced value, the court may award that owner a credit against their share. Similarly, a party who wasted or damaged the property may receive a reduction.
- Judgment liens or priority claims: Other judgment creditors of a co-owner may have claims that the court must satisfy based on priority rules.
Step-by-step: How to get your share after the sale
- Get the court’s distribution order and sale accounting. After the sale closes, the sale officer files a report and accounting with the court. Obtain copies of the sale report, closing statement (HUD-1 or settlement statement), and the proposed order of distribution.
- Review the accounting. Confirm gross sale price, liens paid, taxes, sale costs, and proposed net proceeds. Compare the proposed distribution to your expected percentage. Note any credits or debits applied to any co-owner.
- Raise objections quickly if needed. If you believe the accounting is incorrect — for example, a lien wasn’t valid or a credit wrongly reduced your share — file an objection or motion with the court within the time frame the court sets. Courts usually allow parties to contest the commissioner’s report or the proposed distribution before funds are paid out.
- Obtain a distribution/order of disbursement. When the court signs the order of distribution, it directs the clerk or sale officer to disburse funds. The order will identify how much each owner receives and any holdbacks.
- Collect your funds. After the order, the clerk or the sale officer should issue a check or transfer funds to you or your attorney. If the court ordered funds payable to an attorney, you must coordinate with counsel for release.
- If the funds are withheld or not paid, enforce the order. If the clerk or a co-owner refuses to pay, file a motion to compel disbursement or a show-cause hearing. If a co-owner refuses to comply with the court’s order, the court can enforce it by contempt or other enforcement remedies.
Hypothetical example
Suppose two co-owners, A and B, each hold 50% as tenants in common. The house sells for $300,000. There is a mortgage of $120,000 and $5,000 in closing and sale costs; unpaid property taxes of $2,000. The gross proceeds are $300,000. Pay mortgage ($120,000), taxes ($2,000), sale costs ($5,000) = $127,000 in deductions. Net proceeds = $173,000. Each owner’s starting share = 50%, so $86,500 each. If Owner A had paid $6,000 of repairs that preserved value and the court awards a $4,000 credit to A, then final distribution: A gets $90,500; B gets $82,500.
Documents to gather before and during distribution
- Deed and title documents showing ownership shares
- Copies of mortgages, liens, and judgments affecting the property
- Sales contract and closing statement (HUD-1 or settlement statement)
- Receipts for mortgage payments, taxes, insurance, repairs, or improvements you paid
- Court filings in the partition case: commissioner’s report, proposed order of distribution, and final decree
Timing and deadlines
Deadlines vary by court and by the commissioner’s report. Do not wait: object promptly if you think the accounting or distribution is incorrect. If you miss the deadline to object, you may lose the chance to challenge the distribution and must rely on other remedies (appeal or enforcement), which are harder and slower.
When to get legal help
You are not required to hire an attorney, but partition cases can involve complex claims (priority of liens, offsets for payments, claims of contribution). Consider consulting an attorney if:
- Large sums are at stake.
- A co-owner alleges significant credits or debts against your share.
- There are complicated lien priorities or multiple lenders.
- The sale produced unexpected accounting entries you do not understand.
An attorney can review the sale accounting, help prepare objections, and represent you at hearings.
Statutory reference
See Idaho Code Title 6, Chapter 3 for statutory rules governing partition and sale procedures: https://legislature.idaho.gov/statutesrules/idstat/title6/t6ch3/. The chapter explains how courts conduct partition actions, the sale process, and the duties of commissioners or referees.
Helpful Hints
- Obtain the sale accounting early. The sale report is the primary document that shows the math.
- Preserve receipts for mortgage, tax, insurance, and repair payments — they support credits.
- Ask the court clerk for deadlines to file objections or requests for distribution.
- Consider requesting an interim distribution if the net proceeds are large and the court allows partial disbursement after secured liens and costs are paid.
- Confirm whether any funds will be held in escrow by the clerk pending appeal or contest.
- If a secured lender was not paid at closing, notify the court immediately — unresolved liens can reduce net proceeds later.
- Communicate in writing with co-owners and the sale officer to document requests and agreements.
Disclaimer: This information explains general Idaho procedures and common issues in partition sales. It is educational only and is not legal advice. For legal advice specific to your situation, consult a licensed attorney in Idaho.