Detailed Answer
Under Louisiana law, co-owners must share the “carrying costs” of jointly held property, including mortgage interest, property taxes, insurance premiums, routine maintenance, and homeowners’ association fees. Louisiana Civil Code Article 104 requires each co-owner to contribute their pro rata share of necessary expenses for administration and preservation of the property. See La. Civ. Code Art. 104.
To calculate your co-owner’s share:
- List all carrying costs: Gather invoices for mortgage interest, annual property taxes, insurance, utilities, repairs, and HOA dues.
- Determine ownership percentages: Verify each owner’s percentage in the deed (e.g., 60/40 or 50/50).
- Compute each share: Multiply the total annual carrying costs by the co-owner’s percentage. For example, if total costs are $20,000 and two owners share equally, each owes $10,000.
If your co-owner refuses payment, follow these recovery steps:
- Send a formal demand letter: Detail incurred costs, attach supporting invoices, and cite La. Civ. Code Art. 104. Keep proof of service (certified mail or process server).
- Negotiate or mediate: Propose a payment plan or use a neutral mediator to avoid litigation.
- File an accounting and partition action: Under the Louisiana Code of Civil Procedure, a petition for partition and accounting allows the court to apportion unpaid carrying costs and order a sale if co-owners cannot agree. See La. Code Civ. Proc. Art. 4631 et seq..
- Obtain a court order for contribution: The court can require the delinquent co-owner to pay their share plus interest, court costs, and attorney fees.
Helpful Hints
- Maintain organized, dated records and receipts for every expense.
- Review your deed to confirm exact ownership percentages.
- Send all written demands via certified mail; retain proof of delivery.
- Consider a co-ownership agreement outlining expense responsibilities.
- Use mediation or arbitration clauses to reduce litigation costs.
- Engage a knowledgeable real estate attorney early to protect your interests.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.