How to Divide or Force the Sale of Co-Owned Farmland in Nebraska | Nebraska Partition Actions | FastCounsel
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How to Divide or Force the Sale of Co-Owned Farmland in Nebraska

Options for Dividing or Forcing Sale of Co‑owned Farmland in Nebraska

FAQ

Detailed Answer

When farmland is owned jointly by heirs who cannot agree on what to do, Nebraska law gives co‑owners a few legal paths. The two main judicial remedies are a partition in kind (physically dividing the land) or a partition by sale (selling the property and dividing the proceeds). Which route the court takes depends on what is practical, fair, and preserves value.

Who can ask the court?

Any co‑owner of the real property — including heirs who received title through probate or who are tenants in common — can file a partition action asking the court to divide or sell the property.

Partition in kind (physical division)

Partition in kind divides the property into separate parcels so each owner receives a portion that reflects their ownership share. Courts favor partition in kind when a division can be made without substantially reducing the overall value or unnecessarily harming farm operations. When possible, the court may order a survey and have a commissioner or appraiser assist to create reasonably equal parcels. For farmland, practical limits often apply: soil quality, access, irrigation, and existing improvements can make in‑kind division impractical or reduce value.

Partition by sale (court‑ordered sale)

If the court finds that dividing the property would be impractical or unfair, it can order a sale and distribute net proceeds to owners according to their ownership shares. The court can direct a public auction, a private sale supervised by a commissioner, or authorize sale through another method the court approves. Courts may weigh whether an orderly sale will yield more value than dividing the land.

Factors Nebraska courts consider

  • Whether the land can be divided without materially diminishing value or impairing farm operations.
  • Physical features (fencing, roads, water access, improvements) and whether parcels can be made reasonably equal.
  • Economic realities such as how division would affect crop production, leases, or government program enrollment.
  • Ownership shares and any agreement among owners (written agreements carry weight).
  • Liens, mortgages, or claims that must be satisfied from sale proceeds.

Procedural overview

  1. File a petition for partition in the appropriate Nebraska court (typically district court). The petition identifies the property, lists all co‑owners, and states the requested relief (division or sale).
  2. The court issues notice to all interested parties and may set a status conference or hearing.
  3. The court can order surveys, appraisals, and appointment of a commissioner to propose a division or oversee sale.
  4. If the court orders partition in kind, it will approve a plan and finalize deeds conveying the new parcels to owners in proportion to their shares.
  5. If the court orders a sale, it will approve the sale method, confirm sale terms, pay liens/taxes, and distribute net proceeds to owners.

Other relevant Nebraska law points

Nebraska has statutes and court rules that govern partition actions and probate sales. For statute language and related rules, consult the Nebraska Legislature’s statute search (search “partition” or “probate”). A helpful starting place is the Legislature’s site: Nebraska statutes — partition search results. For probate sale authority and related rules, see: Nebraska statutes — probate search results. For court procedures and self‑help resources, see the Nebraska Judicial Branch: Nebraska Judicial Branch self‑help.

Alternatives to a contested court action

Before or during litigation, consider these non‑judicial options:

  • Buyout: One or more owners purchase the shares of others at appraised value.
  • Voluntary sale: All owners agree to sell on the open market and split proceeds.
  • Partition agreement: Owners negotiate a written division plan with professional surveys and approvals.
  • Mediation: A neutral mediator can help heirs reach a settlement to avoid court.

Common practical issues for farmland

Farmland raises special concerns: farm leases, government program eligibility (e.g., USDA programs), conservation easements, and operational continuity (equipment, shared buildings). A forced division could reduce farm efficiency and value. Courts and parties usually consider these economic realities when deciding whether to divide or sell.

Typical timeline and costs

Partition actions can take months to over a year, depending on complexity, surveys, appraisals, and whether the case settles. Costs include court filing fees, attorney fees, surveyor and appraiser fees, and possible commissioner fees. In many cases, the court allocates costs and sale expenses before distributing proceeds.

Hypothetical example

Three heirs own 100 acres as tenants in common: A (50%), B (30%), and C (20%). They disagree about continuing the farm. A files a partition action asking for division. If a survey can create three parcels with roughly equivalent productive value, the court may order partition in kind, assigning parcels according to shares. If dividing would create parcels too small or damage irrigation systems, the court could order a sale and divide net proceeds 50/30/20 after paying liens and sale costs.

Important: This article explains general options under Nebraska law and is not a substitute for legal advice tailored to specific facts. For precise statutory language and how law applies to your situation, consult an attorney.

Helpful Hints

  • Gather title documents, deeds, probate records, and any written agreements among owners before speaking to counsel.
  • Get a professional appraisal early. It helps evaluate buyout offers and supports negotiations.
  • Check for liens, mortgages, tax obligations, conservation easements, or government program requirements that affect transferability or sale.
  • Consider mediation to save time and legal costs. Courts often encourage settlement.
  • Explore a buyout if one owner wants to continue farming. A structured buyout can preserve the farm and avoid sale.
  • Ask an attorney about tax consequences (capital gains, basis adjustments, and possible installment sale options) before finalizing a sale or buyout.
  • If the property is in probate, confirm whether the personal representative already has authority to sell or needs court confirmation.
  • Plan for farm continuity: temporary management agreements can keep crops and leases operating while disputes are resolved.
  • Contact the Nebraska Judicial Branch self‑help resources to learn filing requirements and local court procedures: supremecourt.nebraska.gov/self-help.
  • Hire an attorney experienced with Nebraska partition and real estate law to review options and represent your interests.

Disclaimer: This information is educational only and does not constitute legal advice. It does not create an attorney‑client relationship. For legal advice about your situation, consult a licensed Nebraska attorney.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.