How can I get my share of the net proceeds after the partition sale of a co-owned house in LA?

Detailed Answer — how distribution of net proceeds typically works under Louisiana law

When co-owners of real property in Louisiana end ownership by judicial partition and the court orders a sale, the court oversees the sale and the distribution of the sale proceeds. The general steps you should expect are:

1. Determine the legal status of the property and who is entitled to proceeds.

   First identify how you and the other owners hold title (for example: ownership in indivision, community property after divorce, or a trust/estate situation). Louisiana’s co-ownership rules affect who can demand partition and how shares are calculated. For statutory text and related rules, start with the Louisiana Legislature site search (partition / co-ownership): https://www.legis.la.gov/Legis/LawSearch.aspx?search=partition and https://www.legis.la.gov/Legis/LawSearch.aspx?search=co-ownership.

2. Sale, liens, and costs are paid first.

   When the court orders a partition sale and the property is sold, the gross sale price is the starting point. Before any co-owner receives money, the sheriff or curator (the official handling sale proceeds) pays out valid liens and sale-related expenses. Typical deductions include:

   • Mortgage and deed-of-trust payoffs and any other recorded liens on the property;
   • Real estate taxes and assessments due at closing;
   • Costs of sale (advertising, auctioneer or broker commissions if applicable, appraisal or curator fees);
   • Court-approved attorney’s fees or court costs specifically charged to the property or the partition action.

   Only the remainder after those payments (the net proceeds) is available for distribution to co-owners.

3. Allocate net proceeds according to ownership shares and court adjustments.

   Net proceeds usually divide according to each owner’s legal share (percentage interest). If owners hold equal shares, they split equally; if one owner holds a larger legal share, that owner receives a larger portion. The court can adjust the division to account for:

   • Advances or payments one co-owner made for taxes, mortgage payments, repairs, or maintenance that benefit the property;
   • Improvements paid for by one co-owner that increased property value;
   • Contracts among co-owners or prior agreements affecting distribution;
   • Costs or penalties the court orders one owner to bear because of misconduct or waste.

   The court will order an accounting if someone disputes credits or charges — that accounting becomes the mathematical basis for each owner’s share.

4. How to actually receive your money.

   After the court signs the judgment or order directing distribution, the clerk or the official handling sale funds releases payments. Common ways you receive your share:

   • The court issues a distribution order and the clerk mails or issues checks directly to named owners or their attorneys;
   • If proceeds go to the court registry because of a dispute, you may need to file a motion or answer the court’s order to claim your portion; the court then issues a distribution judgment;
   • If an owner refuses to comply with a distribution order or does not appear to accept funds, the court can order deposit of funds into the court registry and then enter judgment directing payment to each owner, which can be enforced like any other judgment.
5. Enforcement and resolving disputes.

   If anyone blocks distribution (for example, disputes over credits or claims a lien not shown at sale), you can ask the court to:

   • Enter a final distribution judgment after a hearing;
   • Order an accounting and allocate credits/charges;
   • Permit deposit of proceeds into the court registry until disputes resolve;
   • Enforce the distribution judgment using post-judgment remedies available under Louisiana law.

Example (hypothetical): three co-owners each own 1/3; sale price $300,000. Liens and closing costs total $50,000 and sale costs are $10,000. Net proceeds = $240,000. Each owner’s gross share = $80,000. If one owner paid a $6,000 tax advance that is credited, the credited owner’s net would be $86,000 and the other two owners $77,000 each, subject to court approval.

Because Louisiana’s partition practice flows through the courts, expect the clerk to rely on the court’s written distribution order. If the clerk won’t release funds without a written judgment, ask your attorney to prepare and submit the proposed judgment of distribution and a form of order for the judge to sign.

For statutory authority and more on partition procedure or co-ownership, review the Louisiana Legislature’s searchable code pages (start here): https://www.legis.la.gov/Legis/LawSearch.aspx?search=partition.

Helpful Hints

• Confirm your legal share of the property before distribution — ownership percentages control the basic split.
• Collect and preserve receipts for any payments you made (taxes, mortgage payments, repairs) that you want credited against your share.
• Ask the court clerk for the final distribution order and the accounting applied to sale proceeds; you are entitled to see the math used to compute net proceeds.
• If proceeds are held in the court registry because of conflict, file a written claim or an exception promptly so the judge can resolve the dispute.
• If you expect a lien or creditor claim, confirm whether the lien was paid off at closing; if not, the court may require holdback or resolution before distribution.
• Hire a Louisiana attorney experienced in partition and real estate to prepare and present a proposed judgment of distribution and to enforce the judgment if needed.
• Be aware of deadlines for post-sale objections; raising issues late can limit remedies.
• Keep tax records—receiving proceeds may have tax consequences (capital gain, basis adjustments). Consult a tax advisor.