Detailed Answer
Partition Actions Under Nebraska Law
When heirs inherit real estate as co-owners, they each hold an undivided interest in the whole property. If one heir wants to live in the home while another wants to sell, Nebraska law allows any co-owner to file a partition action. Under Neb. Rev. Stat. § 25-21,149 (link), the court can:
- Order a partition in kind, dividing the land into separate parcels if practical and equitable.
- Order a partition by sale, appointing a commissioner to sell the property and divide the net proceeds among co-owners by ownership share.
Occupant’s Rights and Obligations
The heir who lives on the property does not automatically gain exclusive possession or ownership. That heir may:
- Offer to buy out the non-resident co-owner’s share at fair market value, often determined by an independent appraisal.
- Be required to pay proportionate rent to co-owners for exclusive occupancy if no buyout occurs.
- Maintain taxes, insurance and mortgage payments in line with their ownership percentage.
Accounting for Improvements and Expenses
Nebraska courts follow equitable accounting principles. Under Neb. Rev. Stat. § 25-21,150 (link), an occupying co-owner may seek credit for documented improvements or necessary repairs they funded. Conversely, the occupying heir may owe reimbursement for routine expenses paid by non-resident co-owners.
Sale and Distribution of Proceeds
If the parties agree to sell, they list the property, pay sale costs, and split net proceeds by ownership share. If they cannot agree, the court-supervised partition sale provides a final resolution. After sale, the court or appointed commissioner distributes proceeds according to each heir’s percentage interest.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed Nebraska attorney for guidance on your specific situation.
Helpful Hints
- Review Neb. Rev. Stat. § 25-21,149 and § 25-21,150 for partition procedures.
- Obtain an independent appraisal before negotiating a buyout or listing the property.
- Keep detailed records of improvements, repairs and expenses.
- Consider mediation to resolve disputes and avoid court costs.
- Consult an attorney to understand tax consequences of sale or inheritance.