Detailed Answer
Short answer: Under Indiana law, you generally may seek mortgage statements and repair receipts from a co-owner before the proceeds are divided. If the co-owner refuses, you can ask a court for an accounting and compel production of documents during a partition or accounting action. Mortgage liens normally must be paid from sale proceeds, and contributions by a co-owner (mortgage payments, repairs) can affect how net proceeds are divided.
This answer explains how that works in practice, what rights each co-owner has, and practical steps to get the documents and protections you need.
How the process works under Indiana law
When two or more people own real property together (tenants in common or joint tenants) and they decide to sell or are forced to divide the property, Indiana law allows for:
- payment of liens and mortgages from sale proceeds in the order of priority,
- an accounting between co-owners for payments that affect the property (mortgage payments, taxes, insurance, repairs), and
- judicial partition or sale if owners cannot agree.
The statute that governs partition actions (sale or division of real estate) describes the court’s authority to order a sale and divide the proceeds. For the statutory framework, see the Indiana Code on partition actions: Indiana Code: Partition of Real Estate (Title 32, Chapter 24).
Documents you can reasonably request
You can ask a co-owner to produce:
- current mortgage statements and payoff figures,
- records of mortgage payments the co-owner made (bank records, canceled checks),
- receipts and invoices for repairs and improvements,
- records of taxes, insurance, utilities, or other property expenses the co-owner paid, and
- copies of any liens or encumbrances recorded against the property.
What happens if the co-owner refuses
If a co-owner refuses to produce documents voluntarily, you have options:
- Send a written demand that explains why you need the documents and offer a short deadline to comply.
- Propose mediation or a professional accounting to resolve disputes without litigation.
- If you file a partition action or an action for an accounting, Indiana’s civil procedure rules allow discovery to compel production of documents (interrogatories, requests for production, subpoenas). See the Indiana Rules of Trial Procedure for discovery processes: Indiana Trial Rules. Courts can compel documents and award sanctions for refusal.
- The court can order an equitable accounting that determines each co-owner’s share after crediting mortgage and repair payments.
How mortgage payments and repairs affect the split
Key points courts consider:
- Mortgage lien priority: Recorded mortgages and liens are generally paid from sale proceeds before owners split what remains. A buyer or a court will satisfy liens from the sale funds according to their priority.
- Contributions by co-owners: If one co-owner paid the mortgage, taxes, insurance, or necessary repairs, that co-owner may be entitled to reimbursement or credit before proceeds are split. The court will consider whether payments were made for the benefit of the property and whether a co-owner consented to the expenditures.
- Improvements vs. repairs: Ordinary repairs intended to maintain the property are more likely to be reimbursed than cosmetic improvements, which may increase the property’s value (and thus get factored into the sale price rather than direct reimbursement). Courts distinguish between maintenance (creditable) and improvements (may affect value).
Typical courtroom outcomes
When a partition and accounting occur, the court usually:
- orders payment of recorded liens and mortgages from sale proceeds,
- directs an accounting to credit co-owners for mortgage and necessary expenditures, and
- divides the remaining proceeds according to ownership shares after adjustments.
That means you can generally require documentation to support credits or reimbursements. If the co-owner can’t produce receipts or statements, the court may disallow claimed credits or require alternative proof (bank records, testimony).
Practical steps to take now
- Ask politely in writing for mortgage statements, payoff quotes, and receipts. Keep a copy of the request.
- Offer a short, reasonable deadline (e.g., 10–14 days) and propose mediation or a neutral accountant if the other owner objects to charges.
- If the co-owner refuses, consult an attorney about filing a partition action or an accounting action. In litigation you can use discovery tools to force document production.
- Collect your own documentation showing your payments or contributions (bank statements, canceled checks, photos of repairs, contractor invoices).
- Make sure any recorded mortgage or lien is identified early; recorded liens must be paid from sale proceeds regardless of internal agreements between co-owners.
Example (hypothetical)
Two co-owners sell a house for $200,000. The recorded mortgage balance is $50,000. One co-owner claims she paid $6,000 in repairs and the other claims no payments. Before splitting proceeds, the parties exchange mortgage statements and invoices. The mortgage is paid from proceeds, leaving $150,000. The court orders an accounting, finds $6,000 was documented and necessary, credits that co-owner, and then divides the remainder by ownership shares. If the co-owner who claimed repairs produced no receipts, the court might deny that credit.
Where to look in Indiana law
For partition actions and the court’s authority to order sale and distribution, see the Indiana Code on partition: Indiana Code — Partition of Real Estate (Title 32, Chapter 24). For rules about discovery and compelling documents in civil cases, see the Indiana Trial Rules: Indiana Trial Rules.
Helpful Hints
- Put requests in writing and keep copies. A written trail helps in court or mediation.
- Collect your own proof: bank records, cancelled checks, invoices, and photos of repairs are strong evidence.
- Identify recorded mortgages and liens early—these get paid from sale proceeds, and you cannot avoid those obligations by private agreement alone.
- Consider mediation or a neutral accountant before filing a lawsuit; these routes often save time and money.
- If you file a partition or accounting action, use discovery (requests for production, subpoenas) to compel documents. An attorney can draft effective discovery requests and handle motion practice if the other owner resists.
- Keep timelines in mind. Courts can set schedules for discovery and accounting, and delays from one owner can increase costs.
- Get legal advice early if large sums or complicated liens are involved. Issues like tax consequences, priority of liens, or whether repairs count as improvements can materially affect outcomes.
Disclaimer: This article explains general principles of Indiana law and common procedures. It is for educational purposes only and is not legal advice. Every situation is different. For advice about your specific facts, consult a licensed Indiana attorney.