Detailed Answer — How distribution works under Kentucky law

When co-owners cannot agree on use or ownership of real property, any co-owner can ask a Kentucky court for a partition. The court will either divide the land physically (partition in kind) or order a sale and divide the net sale proceeds among the co-owners (partition by sale). The distribution of sale proceeds follows a straightforward priority order:

1. Pay valid liens and mortgages first. Mortgages, property tax liens, and other recorded encumbrances remain attached to the property. When the property is sold, the sale proceeds must satisfy those liens in order of priority before any co-owner receives money.
2. Pay sale costs and court costs next. Reasonable costs of sale (real estate broker commission, advertising, costs of conducting the sale), court costs, and expenses necessary to preserve the property during the litigation are deducted from the gross sale price.
3. Resolve any reimbursements or credits. The court will consider claims for reimbursement or charges among co-owners. Typical examples:
   • A co-owner who paid mortgage installments, taxes, insurance, or made necessary repairs may claim reimbursement or a credit before proceeds are split. The court may order an accounting to determine fair credits or charges.
   • If one co-owner improved the property and increased its value, that owner may ask the court for compensation or an accounting for changes in value.
4. Divide the remaining net proceeds by ownership shares. After paying liens, sale costs, and any court-ordered adjustments or reimbursements, the remaining funds get split according to the owners’ legal interests in the property (their fractional shares). Those shares come from title documents (deeds), any written agreement among owners, or court determination when ownership is unclear.
5. Handle disputed or unresolved claims. If co-owners assert competing claims (for example, one says they own 60% and another says 50%), the court resolves ownership through evidence (deeds, conveyances, deeds of trust, payment history) before final distribution. The court may retain funds in its registry until disputes resolve.

Example (simple hypothetical calculation):

Three co-owners hold title as tenants in common with equal one‑third shares. The property sells for $300,000. There is a mortgage of $80,000 and $6,000 in sales costs (closing and agent fees). After paying the mortgage and sales costs, the net proceeds are $214,000. Each co-owner receives one‑third, or about $71,333, unless the court orders reimbursements or credits that change those amounts.

Special issues Kentucky courts consider

• Type of co-ownership matters. Tenants in common typically can force partition. Joint tenancy (with right of survivorship) can be more complicated—survivorship rights may affect whether a partition is appropriate.
• Priority of liens. Recorded mortgages and tax liens remain priorities against sale proceeds. Secured creditors get paid before unsecured distributions to co-owners.
• Accounting claims. Kentucky courts frequently order an accounting so that contributions (mortgage payments, taxes, repairs) are fairly credited before final division. Be ready to provide proof of payments or expenses.
• Costs and fees. The court may allocate court costs and can, in certain circumstances, award attorney’s fees or other costs against a party, but that depends on statutory authority and the court’s discretion.

Where the law comes from

Partition rules arise from Kentucky civil law and court procedure. For statutory text and related civil rules, you can search the Kentucky Revised Statutes and Kentucky Court of Justice resources:

• Kentucky Revised Statutes (search and statutes): https://apps.legislature.ky.gov/statutes/
• Kentucky Court of Justice (court forms and procedures): https://kycourts.gov

Bottom line: In Kentucky, sale proceeds from a court-ordered partition are first used to pay secured creditors and sale/court costs, then adjusted for any reimbursements among the co-owners, and finally split according to each owner’s legal share of the property.

Helpful Hints — Practical steps to protect your share

• Obtain a certified copy of the deed and any recorded documents that show each owner’s percentage interest.
• Get a title search early to identify mortgages, liens, or other encumbrances that will be paid from sale proceeds.
• Keep receipts and bank records showing payments you made for mortgage, taxes, insurance, repairs, or improvements; you may need them for reimbursement claims.
• Consider negotiating a buyout (one owner buys out the others) to avoid a court sale and fees. Mediation can be faster and less expensive than litigation.
• If the sale is ordered, ask the court for an accounting and a clear statement of how costs, liens, and reimbursements will be handled before distribution.
• Be prepared for delays: disputes over ownership percentages, lien priority, or credit claims can slow distribution; the court may hold funds until resolved.
• Talk to a local Kentucky attorney experienced in property/partition actions to protect your rights and to prepare or respond to claims for credit or reimbursement.