Disclaimer: This information is educational only and is not legal advice. If you have a dispute over co-owned farmland, consult a licensed Illinois attorney about your specific situation.
Detailed Answer
When two or more people own farmland together in Illinois and they cannot agree about use, management, or ownership, Illinois law allows a co-owner to ask a court to divide the property or order its sale. The court action is called a partition action. The key statute is the Illinois Code of Civil Procedure governing partition actions (see 735 ILCS 5/15-1 et seq.). For a full view of the statute text, see the Code of Civil Procedure on the Illinois General Assembly website: 735 ILCS 5 (Code of Civil Procedure).
Step-by-step overview under Illinois law
- Try an out-of-court resolution first. Before filing suit, owners commonly try negotiation, written buyout offers, mediation, or forming a buy-sell agreement. Courts generally encourage settlement because litigation can be costly and slow.
- Gather documentation. Collect deeds, title reports, surveys, property tax records, lease or crop-share agreements, income and expense records for the farm, mortgage statements, and any written ownership agreements (partnership, LLC operating agreement, or wills). These documents are essential for proving ownership percentages and any liens or encumbrances.
- File a partition petition in the county circuit court. A co-owner starts a partition action by filing a petition asking the court to divide the land among owners or, if division is impracticable, to order a sale and divide proceeds. Partition law and procedures are set out in the Illinois Code of Civil Procedure (see 735 ILCS 5/15-1 et seq.). The court has jurisdiction where the property is located.
- Serve all owners and interested parties. All co-owners and any lienholders (mortgagees, judgment creditors) must be joined or given notice. If a party cannot be found, the court may allow notice by publication under court rules.
- Preliminary court steps: claims, counterclaims, and proof of ownership. Parties will exchange claims, file any objections, and may seek temporary orders (for example, regarding farm rents, cutting crops, or maintenance). The court will review deeds, title information, and other evidence to determine each party’s interest in the property.
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Partition in kind vs. partition by sale.
- Partition in kind: The court will first consider dividing the land physically so each owner receives a separate parcel proportional to their share. This is preferred when practical and fair.
- Partition by sale: If the land cannot be fairly divided without prejudice to the owners (for example, when perfect division would make remaining parcels uneconomic, harm ongoing farming operations, or the property is improved in a way that prevents fair division), the court may order the property sold and the net proceeds divided among the owners.
- Appointment of a commissioner, surveyor, or referee. The court often appoints a commissioner or referee to manage the physical partition, conduct surveys, obtain appraisals, and arrange a sale if ordered. The referee reports back to the court and the court issues final orders based on that report.
- Sale process (if sale is ordered). The court supervises the sale. Illinois courts commonly require public sale by auction or a court-approved private sale, subject to confirmation by the court. The sale proceeds are applied first to liens and court-ordered costs, then divided among owners according to their ownership shares.
- Accounting and distribution. The court orders an accounting of rents, profits, and expenses (for example, if one co-owner managed the farm and collected income, the court can require an accounting and adjustment). After paying liens, taxes, and costs (including the commissioner’s fees and attorneys’ fees if ordered), the court distributes the net proceeds to the owners based on their legal shares.
- Appeals and enforcement. Parties can appeal partition orders under the Illinois rules for civil appeals. The court’s orders can be enforced through standard remedies if a party resists distribution or fails to comply.
Practical considerations unique to farmland
- Farms are often hard to divide without harming their economic use. Courts therefore commonly order a sale when dividing would reduce value or disrupt farming operations.
- Long-term leases, crop-share arrangements, and conservation programs (e.g., CREP, CRP) can complicate partition. Expect the court to consider these when deciding whether to partition in kind or order a sale.
- Environmental issues, farm buildings, and access/easement needs affect whether the court can divide land into workable parcels.
Relevant Illinois statutory reference
The partition provisions exist within the Illinois Code of Civil Procedure. See the Code online at the Illinois General Assembly: 735 ILCS 5 (Code of Civil Procedure). For example, partition actions and procedures appear in the sections commonly cited as 735 ILCS 5/15‑1 et seq.
Helpful Hints
- Document ownership and contributions: collect deeds, title insurance, and records showing who paid for improvements, taxes, and mortgage payments. This documentation helps protect your share and supports requests for accounting.
- Get an appraisal early: a current market appraisal gives a baseline for buyouts or for the court if it orders a sale.
- Consider mediation: Illinois courts often encourage settlement. Mediation can preserve value by avoiding a forced sale.
- Protect income: if the farm generates rent or crop income, ask the court for temporary orders to preserve value and require accounting for income and expenses while the case proceeds.
- Watch for liens: mortgage and judgment liens attach to property. The sale proceeds will pay these liens before owners share the balance.
- Plan for tax consequences: sale or transfer of farmland can trigger capital gains and other tax obligations. Consult a tax advisor early.
- Explore entity options: if multiple family members co-own, consider forming a partnership or LLC with a buy-sell agreement in the future to avoid litigation.
- Consult a licensed Illinois attorney: an attorney can explain local court procedures, file the correct pleadings in the county circuit court where the land is located, and represent you in settlement talks or trial.
Where to find forms and local procedures: Partition cases are filed in the circuit court of the county where the farmland is located. Court clerks can provide local filing requirements and forms. For statute text and related procedural law, consult the Illinois General Assembly website referenced above.
Again, this is informational only and not legal advice. For guidance tailored to your facts, contact a licensed Illinois attorney.