Detailed Answer
This FAQ explains, under Nebraska law, how you can get your share of the net proceeds after a court-ordered partition sale of a co-owned house. This is a general guide for someone starting with no legal knowledge. It describes the usual court process, what reduces the gross sale price, how shares are calculated, and practical steps to receive your money.
How Nebraska partition sales work
A partition action is a court case that asks a judge to divide property owned by two or more people when they cannot agree on continued co-ownership. If the court orders sale instead of dividing the land physically, the property is sold and the proceeds are distributed. Nebraska’s statutory framework and court rules control the procedure and distribution; see the Nebraska Revised Statutes for civil procedure, including partition provisions: Nebraska Revised Statutes, Chapter 25.
What comes out of the gross sale price before distribution
- Liens and mortgages with priority: secured creditors (mortgages, tax liens) are usually paid first from sale proceeds.
- Costs of sale: broker or auction fees, advertising, appraisal, and commissioner’s or sheriff’s fees.
- Court costs and attorney fees: if the court awards attorney fees or other costs, those are deducted.
- Other statutory liens or claims: child-support liens, judgment liens, or properly recorded encumbrances.
After these amounts are paid or retained, the remaining amount is the net proceeds available for distribution to the co-owners.
How your share is determined
Generally, the court distributes net proceeds according to the ownership interests shown in title (the deed) or the shares proven in court. That typically means:
- If the deed shows equal ownership (for example, tenants in common 50/50), then net proceeds divide by those percentages.
- If a party proves a different equitable interest (contributions to purchase price, improvements, or payments of mortgage), the court can adjust distribution by credit or debit to reflect fairness. The court performs an accounting when necessary.
Typical timeline and who holds the money
After the sale, the court usually approves the sale and signs a distribution order. Proceeds may be:
- Paid to a court-appointed commissioner or the county treasurer to pay liens and disburse net proceeds per the court’s order.
- Held by the court clerk in a blocked account until objections and statutory waiting periods expire, then disbursed per the distribution order.
Practical steps to get your share
- Obtain a copy of the final court order or decree of distribution. This document tells who gets what and whether the court ordered the clerk or a commissioner to distribute funds.
- Confirm all liens and costs have been paid. Ask the clerk or commissioner for a settlement statement (itemized accounting of receipts and payments) showing how the net proceeds were calculated.
- Provide any requested identity or tax documentation (for example, a W-9) to the court clerk or the commissioner so they can prepare a check or wire the funds.
- If the funds are being held by the clerk or commissioner and you are entitled to payment, request a copy of the disbursement check or wire instructions and an expected delivery date.
- If a co-owner disputes distribution (claims additional credits or liens), the court may hold a hearing. Be prepared to present evidence (deed, mortgage payment records, receipts for improvements, lease income accounting).
- If the clerk or commissioner refuses or delays distribution despite a signed order, you can ask the court to enforce the distribution order — typically by filing a motion to compel distribution or a show-cause motion. If necessary, the court can sanction noncompliance.
What to do if you can’t locate your funds or a co-owner won’t cooperate
If the sale is complete but your share is missing or a co-owner is withholding funds, you should:
- Ask the court clerk for the record of distribution and any canceled checks or wire receipts.
- File a motion with the court that handled the partition asking for an order compelling distribution and for an accounting of funds received and spent.
- If the court finds willful refusal, it can enter enforcement remedies, which may include contempt, turnover orders, or other sanctions.
Tax and recordkeeping considerations
Proceeds from a partition sale can have tax consequences. The court’s distribution does not determine federal or state tax treatment — you may have capital gains, basis adjustments, or reporting requirements (such as Form 1099-S in some sales). Keep detailed records: settlement statements, proof of improvements, mortgage payments, and any receipts that show adjustments to your basis.
When to get legal help
Consider hiring a Nebraska attorney if:
- There are competing liens, complex creditor priority issues, or unclear title problems.
- A co-owner claims an unequal interest or there is a long or disputed accounting needed.
- Someone is refusing to follow a court order or you need to file enforcement motions.
- The tax consequences are complex and you need coordination between legal and tax advice.
Key Nebraska statute reference
Read Nebraska’s statutes and court rules for partition procedure and enforcement at the Nebraska Legislature website: Nebraska Revised Statutes, Chapter 25. That chapter contains the civil procedure provisions that govern partition actions and related court processes.
Bottom line
To get your share of net proceeds: obtain the court’s final distribution order and settlement statement; confirm liens and costs were paid; provide the clerk or commissioner any requested documentation; and, if payment is withheld or disputed, ask the court to enforce its order. If issues are complex or contested, consult a Nebraska attorney for representation and to protect your rights in court.
Helpful Hints
- Keep a full copy of the deed, mortgage statements, receipts for improvements, and any written agreements among co-owners.
- Ask for a written settlement statement showing every deduction from the sale price.
- Confirm whether the court ordered an accounting — that accounting is your road map for what you should receive.
- Get a lien search before sale to see what claims must be paid at closing.
- Provide identification and tax forms promptly to avoid delay in distribution.
- Save all email or court filings about the sale; they can be evidence if a dispute arises.
- If you are owed funds that are being held by a third party (escrow agent, commissioner, or clerk), find out the exact name of the holder and request a written confirmation of the amount held for you.
- Remember secured creditors (mortgage, tax liens) get priority; distribution is net of those payments.
Disclaimer: This information is for general educational purposes only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation in Nebraska, consult a licensed attorney.