Detailed answer — How a co-owner in Nebraska can get money instead of the property

When two or more people own the same real property (for example, as tenants in common or joint tenants), each co-owner normally has a right to the property itself. If a co-owner wants money instead of a physical portion of the property, Nebraska law and court procedures provide several paths to achieve that result. Below is a plain-language overview of the common routes, the typical steps, and important legal points to consider.

1. Try a voluntary buyout first (fastest and least expensive)

The simplest way to convert an ownership interest into money is for the owners to agree that one owner will buy out the other(s). Key steps include:

• Obtain a professional appraisal or two to set a fair market value.
• Agree how to treat outstanding mortgage(s), liens, taxes, and selling costs (the buyer may take the property subject to the mortgage or the sellers may pay off encumbrances from sale proceeds).
• Adjust price for any contributions (for example, one co-owner paid more mortgage, taxes, or made capital improvements and may be entitled to credit).
• Document the agreement in writing and record any deed transfer with the county.

Voluntary buyouts let owners control timing, price, and tax handling. If the parties can’t agree, move to a judicial solution.

2. Ask the court for a partition and sale

If co-owners cannot agree, Nebraska law allows a co-owner to bring a partition action in court to divide co-owned real estate. A judicial partition has two main outcomes:

• Partition in kind: the court divides the land into separate physical portions, each owner receives a portion roughly equal to their share. This approach is used when a fair physical division is feasible.
• Partition by sale: if physical division is impractical or would cause prejudice (for example, a single-family home or small lot), the court can order the property sold and distribute the net sale proceeds to the co-owners in proportion to their legal interests.

In Nebraska, partition procedures and the court’s powers are set out in the state’s statutes governing partition actions. For the statutory framework, see Nebraska’s partition statutes in Chapter 25 of the Nebraska Revised Statutes: https://nebraskalegislature.gov/laws/statutes.php?chapter=25

What the court usually does in a partition-by-sale

• The court may appoint a referee or commissioner to oversee the sale (advertise, accept bids, conduct the sale).
• Sale proceeds first pay liens, mortgages, taxes, sale expenses, and court costs. The remaining net proceeds go to owners based on their ownership shares.
• The court can allow credits or offsets—e.g., an owner who paid mortgage payments, property taxes, or costly repairs may be entitled to reimbursement or an adjusted share. Documented payments and receipts strengthen your claim.

3. Ask the court to order a buyout instead of sale

Sometimes a co-owner asks the court to order one party to buy out the others at a court-determined price (an equitable remedy courts may use in specific circumstances). The court will typically rely on appraisals and evidence of value when setting a buyout price. Whether a court will order a compulsory buyout rather than a sale depends on the facts and the judge’s discretion.

4. Accounting claims and credits

If co-owners disagree about distributions because of unequal contributions (mortgage payments, taxes, repairs, rental income collected, or waste), a court can order an accounting. The accounting determines who owes what, and the final monetary distribution will reflect those adjustments. Keep careful records: canceled checks, invoices, lease agreements, and bank statements matter.

5. Practical timeline and likely costs

A negotiated buyout can close in a few weeks to a few months (appraisal, title work, closing). A contested partition action typically takes several months to over a year, depending on complexity and whether appeals occur. Costs may include:

• Appraisals and title reports
• Attorney fees (in many cases each side pays its own fees unless the court orders otherwise)
• Court costs and fees for referees or commissioners
• Sale costs (broker’s commission, advertising) if the court orders a sale

6. Tax consequences

Receiving money for your ownership interest may create tax consequences (capital gain or loss). The tax result depends on the property’s basis, how long you owned it, and whether the amount you receive is treated as a sale or distribution. Talk to a tax advisor before you finalize arrangements.

7. Example (hypothetical)

Two siblings each own 50% of a Nebraska rental duplex. One sibling wants out and prefers cash. They try to negotiate, but cannot agree on price. The sibling seeking cash files a partition action. The court finds the duplex cannot be fairly divided and orders a sale. After paying the mortgage, back taxes, and sale costs, the net proceeds are split 50/50. Before distribution, the court credits the sibling who paid the mortgage for several months where the other failed to pay, so the final split reflects that accounting adjustment.

Key statutory reference

Nebraska’s statutory framework for partition actions appears within the Nebraska Revised Statutes (Chapter 25, civil procedure/partition provisions). For the governing text and specific procedural rules, see: https://nebraskalegislature.gov/laws/statutes.php?chapter=25

Helpful hints — Practical steps to improve your chance of getting fair monetary compensation

• Start by attempting a written buyout offer. A neutral appraisal will make offers easier to accept.
• Keep meticulous records of all payments you make for the property: mortgage, taxes, insurance, repairs, and rent collection.
• Get at least one certified appraisal and a title report before court so you can prove fair market value and outstanding liens.
• Consider mediation. Courts often encourage or require mediation in property disputes and it can avoid litigation expense.
• If you file a partition action, ask your attorney to seek an accounting for credits (mortgage/tax payments, repairs, rents) before distribution.
• Factor in taxes. Talk with a CPA or tax advisor about capital gains, basis, and the tax timing of any payment you receive.
• Understand costs and timelines. Litigation can be slow and costly; voluntary settlement typically saves time and money.
• Consult a Nebraska property attorney early. Local counsel will explain how Nebraska courts apply partition law and guard your procedural rights.