Court Process for Dividing or Selling Co-Owned Property

This FAQ explains how a co-owner can ask a Minnesota court to resolve a disagreement among owners of real estate by dividing the property physically or by ordering a sale. It summarizes the usual legal steps, what the court will consider, and practical next steps. This is educational information only and not legal advice.

Detailed answer: steps to start and pursue a partition action in Minnesota

1. Confirm who may bring the case. Any person with a present legal or equitable ownership interest in the property typically may seek a court-ordered division or sale. That includes owners holding title as tenants in common or joint tenants and persons with recorded interests (for example, purchasers under contract or judgment lienholders). See Minnesota Statutes, Chapter 558 for partition procedures: https://www.revisor.mn.gov/statutes/cite/558 and the opening provision at https://www.revisor.mn.gov/statutes/cite/558.01.

2. Choose the right court and prepare the complaint. File a civil complaint in the Minnesota district court for the county where the property lies. The complaint should describe the property, explain each party’s claimed interest or share, name all owners and persons with recorded interests or liens, and ask the court to (a) partition the property in kind if practical or (b) order a sale and distribute the proceeds. The court needs all parties with a potential claim before it so the order binds everyone.

3. Serve all parties and necessary interested persons. Proper service of process is required under Minnesota rules so everyone with an interest has notice and an opportunity to respond. If anyone cannot be located, the court may permit service by publication when statutory requirements are met.

4. The court evaluates whether division in kind is practicable. Courts generally prefer to divide property physically (partition in kind) when a fair, practical division exists without materially harming value or usefulness. If the property cannot be fairly divided—because of size, layout, or unique improvements—the court may order sale instead.

5. Appointment of commissioners or referees. When the court orders partition in kind, it commonly appoints commissioners or referees to survey, value, and divide the property according to the court’s directions. When sale is ordered, the court supervises the sale process to ensure it is fair and that liens and costs are paid before distribution.

6. Sale procedures and distribution of proceeds. If the court orders a sale, the property is sold at public auction or by other court-approved means. Proceeds first satisfy mortgages, liens, taxes, and costs of sale (including court costs and partition expenses). The remaining balance is distributed among owners according to their legal interests, subject to any credits or offsets the court orders for payments by one co-owner (for example, mortgage payments, improvements, or waste). For statutory guidance, see the partition chapter at https://www.revisor.mn.gov/statutes/cite/558.

7. Accounting and offsets. Co-owners can ask the court for an accounting of payments made on the property (mortgage, taxes, repairs) and may request credits or liens for money they contributed. The court adjusts the distribution accordingly if it finds equitable reasons to do so.

8. Timeline and likely costs. Partition actions can take several months to over a year depending on complexity, number of parties, whether the matter goes to trial, and whether a sale is contested. Court costs, title work, survey fees, commissioner fees, and attorneys’ fees (when awarded by statute or contract or ordered by the court in limited circumstances) typically come from the property proceeds or are assessed as the court directs.

9. Alternatives to litigation. Litigation is not the only way to resolve co-ownership disputes. Parties often avoid court by agreeing to a buyout (one owner buys out others), listing the property for a private sale and allocating proceeds, or using mediation or arbitration. These options are usually faster and less expensive than a contested partition action.

Common issues the court will address

Whether the property can be physically divided without unfairly reducing value.
Priority of liens, mortgages, and tax claims that must be paid out of sale proceeds.
How to credit owners who paid for improvements, mortgage payments, or taxes.
Whether temporary injunctive relief is needed to prevent waste, removal of fixtures, or unauthorized occupancy.

Helpful Hints

Gather title documents: deed(s), mortgage or lien records, chain of title, and any written co-owner agreements.
Collect proof of expenses and payments: receipts for repairs, mortgage and tax payments, insurance, and utility bills.
Get a current property valuation or appraisal to show market value and help the court or the parties evaluate in-kind division vs. sale.
Identify all parties with possible claims: heirs, contract vendees, lienholders, judgment creditors. Missing a necessary party can delay or invalidate relief.
Consider mediation or a negotiated buyout before filing. A written settlement avoids legal fees and court delay.
Ask the court for temporary orders if there’s risk of waste, removal of assets, or disputes about possession while the case proceeds.
Expect the court to appoint neutral commissioners or referees; cooperating with court appointees speeds the process.
Consult a Minnesota-licensed real estate attorney early to evaluate claims, draft pleadings, and advise on credits and defense strategies.

Key statutory resource: Minnesota Statutes, Chapter 558 (partition): https://www.revisor.mn.gov/statutes/cite/558. See also the general provision at https://www.revisor.mn.gov/statutes/cite/558.01.

Where to file and where to look for forms: File the complaint in the district court of the county where the property is located. For basic civil filing information and court locations, see the Minnesota Judicial Branch website: https://www.mncourts.gov/.

Disclaimer: This information is educational only and does not constitute legal advice. It does not create an attorney-client relationship. For advice about a specific situation, consult a licensed attorney in Minnesota.