Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When you inherit property in New Hampshire with your siblings, each of you holds an undivided interest in the real estate. You can avoid a formal court partition by negotiating a voluntary agreement. Under New Hampshire law, if negotiations stall, any co-owner may file a partition action in Superior Court under RSA 547:1. Understanding both paths helps you choose the best outcome.
1. Benefits of Negotiation
Negotiating lets you preserve family relationships, cut legal fees, and control timing. You decide how to divide value or usage instead of leaving that choice to a judge and court-appointed commissioners.
2. Key Negotiation Strategies
- Buyout: One sibling buys the others’ shares, using personal funds or financing.
- Family Partnership or LLC: Form an entity to hold and manage the property, allocating ownership percentages and governance rules.
- Shared Use Agreement: Create a written schedule for occupancy, expense sharing, maintenance responsibilities, and decision-making protocols.
- Coordinated Sale: List the property on the open market and split net proceeds based on each sibling’s ownership stake.
- Mediation: Work with a neutral mediator to facilitate discussions and draft an enforceable agreement.
3. The Partition Process in New Hampshire
If you cannot reach a negotiated agreement, any co-owner may petition the Superior Court for partition. The court decides between partition in kind (physically dividing the property) and partition by sale. It will appoint commissioners to appraise and either divide or sell the property. After costs, you receive your share of the net proceeds proportional to your inheritance interest.
Helpful Hints
- Order a current, professional appraisal to establish fair market value.
- Put all offers and final agreements in writing to prevent misunderstandings.
- Consult a tax advisor about capital gains or other tax consequences.
- Explore financing options if you plan a buyout.
- Engage a mediator early to reduce conflict and cost.
- Speak with a real estate or probate attorney for tailored guidance.
- Maintain open communication with siblings and set clear negotiation deadlines.