How co-owned farmland is divided or sold under Nebraska law
Disclaimer: This article is for general information only and is not legal advice. Consult a licensed Nebraska attorney about your specific situation.
Detailed Answer
This section explains the legal framework and practical steps Nebraska uses when co-owners cannot agree about farmland ownership, division, or sale. I describe who can start a case, the court’s options, procedural steps, and common practical issues using a simple hypothetical to illustrate.
Basic concepts Nebraska courts apply
- Ownership form matters. Most co-owned property is held as tenants in common (each owner has an individual share) or as joint tenants (rights of survivorship). Tenancy type affects succession but both can be subject to a partition action.
- Partition in kind vs. partition by sale. Courts prefer dividing the land physically (partition in kind) when it is practical and equitable. If a fair physical division is not possible, the court may order a public sale and divide the proceeds among the owners.
- Nebraska law lets a co-owner ask the court to force division or sale. The statutes governing partition actions are found in the Nebraska Revised Statutes (see Neb. Rev. Stat. chapter on partition). For statutory text, see Neb. Rev. Stat. § 25-21-101 et seq.: https://nebraskalegislature.gov/laws/statutes.php?statute=25-21-101.
Who can start a partition action?
Any co-owner of real property can file a petition for partition in the appropriate Nebraska court asking the court to divide the property or order a sale. Creditors with recorded liens against the property may also participate because sale proceeds must satisfy liens in priority.
Step-by-step: How a forced division or sale typically proceeds in Nebraska
- Try to resolve the dispute informally first. Courts expect co-owners to attempt negotiation or mediation. If an agreement is reached, owners can document a buyout, boundary partition, or sale plan and avoid court costs.
- Prepare and file a petition for partition. A co-owner (the plaintiff) files a petition in the appropriate Nebraska court describing the property, ownership shares, competing claims, and the requested relief (partition in kind or by sale). The petition should list all co-owners and any known lienholders. The court rules and forms are available through Nebraska courts and local clerks.
- Service and response. The petition and summons must be served on each co-owner and known lienholder. Those parties can answer and raise defenses or counterclaims (for example, claiming exclusive ownership or asserting offsets for improvements or advancements).
- Pretrial steps — valuation, discovery, and potential settlement. The court may order appraisals, disclosures of financial contributions, documents showing mortgage or tax liens, and depositions or interrogatories. Parties often exchange offers to buy out one another.
- Commissioners, appraisal, and proposed division. If the court orders partition in kind, the judge commonly appoints commissioners or referees to survey the land, prepare legal descriptions, and propose a physical division. Commissioners report back to the court with a map and recommendations (including adjustments to reflect unequal shares).
- Hearing and court decision. The court will review evidence (appraisals, commissioners’ report, and parties’ positions) and decide whether a division in kind is practical and fair. If division in kind would be impracticable or greatly reduce value, the court may order a sale instead.
- Sale procedure when ordered by the court. When the court orders a sale, it typically directs a public sale (auction) under court supervision. The court appoints a commissioner or officer to conduct the sale, approve bidders, and receive proceeds. The sale process will account for mortgages, liens, and costs.
- Proceeds are divided among owners according to their ownership shares, after paying liens, taxes, commissions, and court costs.
- Distribution and closing. After sale and confirmation by the court, the clerk or commissioner distributes net sale proceeds to the owners and lienholders in priority order. The court issues the order necessary to transfer title to the buyer if the sale was confirmed.
Practical considerations and disputes courts resolve
- Improvements and expenses: If one owner paid expenses (taxes, mortgage, repairs) or improved the land, the court may adjust distributions so that contributions are accounted for.
- Family farms and special statutes: Nebraska has farm-specific laws and tax rules (e.g., inheritance, agricultural exemptions). Those can affect timing and tax consequences of sale and should be reviewed with a local attorney or accountant.
- Liens and mortgages: Properly recorded liens (mortgages) attach to the property. A sale must normally satisfy lienholders from sale proceeds in priority order.
- Costs and attorneys’ fees: Partition actions generate court costs, appraisal fees, surveying costs, and attorneys’ fees. The court may apportion costs among parties or charge them to the property sale proceeds.
Timeline and likely expenses
Timelines vary. Simple uncontested partitions by agreement can be completed in a few months. Contested cases requiring surveyors, appraisals, discovery, and trial can take a year or more. Expect costs for appraisals, surveys, court filing fees, and attorney time; sale-related costs (auction, commission) also reduce the net proceeds.
Hypothetical example
Three siblings inherit a 120-acre Nebraska farmland as tenants in common (equal shares). Two siblings want to keep farming; one wants to sell. The selling sibling files a petition for partition in the district court. The court orders appraisals and appoints commissioners. The land cannot be fairly divided into three workable tracts without reducing value. The court orders a public sale. After the sale, the court confirms the sale, pays off a mortgage and unpaid property taxes, deducts sale costs, and distributes net proceeds equally to the three siblings.
When to consult a Nebraska attorney
Talk with a Nebraska real property lawyer when:
- Co-owners disagree about sale or division;
- Complex liens, mortgages, or creditor claims exist;
- Family-farm succession, tax consequences, or buyout offers are involved;
- You need help preparing pleadings, responses, or settlement agreements.
An attorney can advise whether negotiation, mediated settlement, or a partition action best protects your interests and can handle procedural steps in Nebraska courts.
Helpful Hints
- Gather documentation: deeds, wills, mortgages, tax bills, expense records, and any written agreements among co-owners.
- Start with a mediated discussion or written buyout offer; settlements save time and money compared to court.
- Obtain at least one independent appraisal early to set realistic expectations about the property’s market value.
- Check recorded liens and mortgages at the county register of deeds before filing — lien priority affects who gets paid from any sale.
- Be realistic about dividing farmland: dividing a single farm may create less productive or uneconomical parcels.
- Ask about tax consequences (capital gains, step-up in basis, farm-specific tax rules) before selling or accepting a buyout.
- Keep written records of payments you make for property taxes, repairs, or improvements — courts may credit these against distributions.
- Expect court timelines and budget for appraisals, surveys, and legal costs when evaluating settlement offers.
For the statutory framework, see the Nebraska Revised Statutes on partition: https://nebraskalegislature.gov/laws/statutes.php?statute=25-21-101.