Detailed Answer

Short answer: When a Louisiana court orders a partition sale, the net sale proceeds normally pay liens and sale costs first, then reimbursements or credits (for things like taxes, mortgages, repairs, or allowable improvements), and the remainder is divided among co-owners according to each owner’s ownership share (their legal or proven percentage interest). A court may adjust shares to reflect equitable credits or debits supported by evidence.

How the court decides each step

Partition actions in Louisiana follow the Code of Civil Procedure and the Civil Code rules for co-ownership. The court will generally take these steps before splitting money from the sale:

Determine ownership shares: The court first determines each co-owner’s legal interest in the property (for example, one-half each for two equal owners; or different percentages if title, a will, or other evidence shows unequal shares). If title is unclear, the court may weigh evidence of contribution to purchase price or written instruments showing ownership interest.
Pay secured debts and liens: Mortgage liens and other recorded encumbrances that attach to the property are paid from the sale proceeds in order of priority. The purchaser at the partition sale takes the property free of co-owners’ unrecorded claims, but recorded liens are paid out first.
Deduct sale and court costs: Costs of the sale (auctioneer or commissioner fees), court costs, and ordinary expenses of the partition (including reasonable attorney’s fees if the court awards them) are paid out of the proceeds.
Allow reimbursements and credits: Louisiana law allows adjustments between co-owners for certain payments and improvements. Typical credits include:
- Payments one co-owner made toward a mortgage, property taxes, or necessary repairs that preserved the property;
- Payments for improvements that increased the property’s value (the paying co-owner may seek reimbursement or have the value accounted for at sale, depending on proof and the court’s ruling);
- Creditable rents or profits from the property (an occupying co-owner may owe the others for use if they excluded them from beneficial use);
- Debts owed among co-owners specifically related to the property.
The court decides which credits are allowed based on proof and equitable principles.
Divide the remaining net proceeds: After liens, costs, and allowed credits are handled, the remaining money is divided according to the co-owners’ shares. If the court has allowed a reimbursement or adjustment, it will apply those amounts before the final division.

Examples (hypothetical)

Example 1 — Clear equal ownership: Three siblings hold title as equal co-owners (one-third each). The house sells for $300,000. There is a $30,000 mortgage and $10,000 in sale costs and liens. Net after liens/costs = $260,000. No credits. Each sibling receives $86,666.67.

Example 2 — Credits and unequal contributions: Two people own 50/50. Owner A paid $20,000 for necessary roof repairs and paid $6,000 in delinquent property taxes to avoid foreclosure. After lien and costs are paid, the court may allow Owner A reimbursement for the repairs and taxes (if proven reasonable), then split the remainder 50/50. If the repairs significantly increased value, the court might account for that value instead of full reimbursement depending on the evidence.

Key Louisiana law resources

Partition actions and co-ownership rules are governed by provisions of the Louisiana Code of Civil Procedure and the Louisiana Civil Code. To review the statutes and official text, search Louisiana statutes on the Legislature’s website (search “partition” or “co-ownership”):

Louisiana Legislature — Law Search (search for “partition” and “co-ownership” for the applicable Code of Civil Procedure and Civil Code articles)

When courts adjust divisions

A court may depart from a simple pro-rata split if justice requires it and the evidence supports equitable adjustments. Common reasons include proof that one co-owner paid more than their share for mortgage, taxes, necessary repairs, or that one co-owner’s actions reduced value or wrongfully excluded others from using the property.

Practical timing

Distribution usually happens after the sale closes and all lien payoffs and costs are determined. If title issues, liens, or reimbursement claims are contested, distribution can be delayed while the court resolves disputes.

Detailed next steps if you are a co-owner in Louisiana

Collect title documents, deeds, mortgage statements, tax records, receipts for improvements and repairs, and any written agreements about ownership shares.
Get a professional appraisal or market analysis if value or increase from improvements is relevant.
Consider negotiation or buyout before court-ordered sale — courts encourage partition in kind (division) if practical or settlement among owners.
If litigation is likely, consult an attorney who handles Louisiana partition actions and property accounting; an attorney can present reimbursement and credit claims to the court.

Disclaimer

This is general information about Louisiana law, not legal advice. Laws change and outcomes depend on the exact facts. Talk with a licensed Louisiana attorney to get advice tailored to your situation.

Helpful Hints

Gather proof: Keep receipts for repairs, tax payments, mortgage payments, insurance, and improvements — courts rely on documentation.
Record liens first: Ensure any lender or lien holder’s status is clear so the court can pay those from sale proceeds correctly.
Consider mediation: A negotiated buyout or partition-in-kind can save costs and preserve value compared to a public sale.
Expect deductions: Understand that mortgages, liens, sale costs, commission, and court costs come off the top before any split.
Ask about credits early: If you paid for taxes, mortgage, or improvements, raise these claims early and supply evidence to avoid surprises at distribution.
Check title and encumbrances: A clean title before sale simplifies distribution and reduces delay.
Consult counsel: An attorney can estimate likely net proceeds, assert credits, and explain how Louisiana’s rules apply to your facts.