Detailed Answer — How the Michigan court process works to divide co-owned real estate
This section explains, in plain language, what typically happens when one co-owner asks a Michigan court to force a partition (division or sale) of family real estate and how a buyout can occur. This is educational information only and not legal advice.
Who can ask the court?
Any person who owns an interest in Michigan real estate (a co-owner) can file a partition action. That includes tenants in common and, in some situations, joint tenants (depending on how title is held). If title is held with a right of survivorship (true joint tenancy), a surviving co-owner may already own the whole property and a partition action may not be available.
Basic goal of a partition action
A partition action asks the circuit court to divide property among co-owners in one of two ways:
- Partition in kind: physically divide the property so each owner gets a portion (used only when the property is divisible in a fair way); or
- Partition by sale: sell the property and split the net proceeds among owners according to ownership shares.
Statutes and court authority
Partition actions in Michigan are governed by the Michigan statutes and decided in the circuit court for the county where the property is located. See the Michigan Legislature website for relevant partition statutes (search for “partition” under the Michigan Compiled Laws): Michigan Legislature. For general court filing and procedure information, see the Michigan Courts website: Michigan Courts.
Step-by-step process
- Confirm ownership and interest. Review deeds, title records, mortgages, liens, and any estate or trust documents. Determine whether you are a tenant in common (each owner holds a divisible share) or joint tenant with right of survivorship (which may affect your options).
- Try to agree first. Courts strongly prefer co-owners reach a voluntary solution: sell and split proceeds, one owner buys out the others, or mediation. A written buyout agreement that sets price and terms avoids litigation costs.
- Prepare and file a complaint (petition). If negotiation fails, the co-owner files a partition complaint in the county circuit court where the property lies. The filing names all co-owners as defendants and describes the property, each owner’s claimed share, and the requested relief (partition in kind or sale).
- Service and response. Defendants (other co-owners) must be formally served and will have an opportunity to respond. The court may schedule conferences or require mediation.
- Pretrial steps. The court may order a title search, property appraisal, and surveys. Expect discovery (documents and information exchange). The court may appoint commissioners, a referee, or a special master to evaluate division options and report back.
- Partition in kind vs. sale. The court will attempt partition in kind if it is practical and fair. If the property cannot be fairly or reasonably divided (common in single-family homes on one lot), the court typically orders a sale and divides proceeds among owners after paying liens, mortgages, taxes, and costs.
- Buyout option. Before a forced sale, a court often allows co-owners an opportunity to buy out other owners’ interests. The buyout amount is generally the fair market value of the co-owner’s share. Appraisals and sometimes an independent valuation process determine value. If no one buys out the others, the court proceeds with sale.
- Sale process and distribution. A court-ordered sale may be conducted by auction or private sale under court supervision. Net proceeds are distributed per ownership shares after costs, liens, and statutory costs are satisfied. The court issues an order transferring clear title to the purchaser.
- Possible appeals and enforcement. Parties have limited rights to appeal court orders. The court enforces its orders through its normal civil process.
Practical points specific to Michigan
- Circuit courts handle partition matters in Michigan. Local court rules and scheduling vary by county; contact the county circuit court clerk for local filing procedures.
- If property is in probate, a partition action may be affected by the probate estate administration and required approvals. Title held by an estate or trust may require additional steps.
- Mortgages and liens stay with the land; a sale will normally pay these off at closing. If you want a buyout, you must account for outstanding debts tied to the property.
Reminder: This is informational only and not legal advice. If you want help applying these steps to your situation, consult a Michigan attorney experienced in real estate litigation, probate, or family property disputes.
Helpful Hints — practical checklist and tips
- Collect documents: deed(s), mortgage statements, tax bills, homeowners insurance, probate papers, trust documents, and any written agreements among owners.
- Get a current market appraisal before filing. A recent appraisal clarifies value and supports a buyout offer or court valuation.
- Check title: order a title report to find liens, easements, or other encumbrances that affect sale or distribution.
- Consider mediation: courts often encourage mediation. A mediator can help structure a buyout or sale with lower cost and faster resolution than litigation.
- If you occupy the home, keep records of payments you make toward mortgage, taxes, utilities, and maintenance — the court may consider equitable adjustments.
- Be realistic about costs: court fees, appraiser fees, survey costs, attorney fees, and sale expenses reduce sale proceeds. Factor those into any buyout math.
- Talk to a tax advisor about possible capital gains or basis issues when the property is sold or one owner is bought out.
- If your parents recently died and the property is part of an estate, resolve probate issues first. Executors or administrators may need court authority to sell estate property.
- If you want to force a buyout rather than sale, document a formal offer and get an appraisal. Courts expect a fair-market valuation process before ordering a buyout instead of a sale.
- Find a local Michigan attorney if you need help drafting a complaint, evaluating settlement offers, or representing you in court. The Michigan State Bar offers lawyer referral services and local bar associations can direct you to real estate litigation counsel.
Useful resources (procedural and informational):
- Michigan Legislature (search statutes): https://www.legislature.mi.gov
- Circuit Court local clerk (for filing requirements): https://www.courts.michigan.gov
- Mediation and self-help resources: consider Michigan Legal Help and local ADR programs (search online for “Michigan mediation services” or visit county court pages).
Again — this article is educational only and not legal advice. Consult a licensed Michigan attorney to discuss your specific facts, rights, and options.