New Hampshire: How to Divide or Force the Sale of Co-Owned Farmland | New Hampshire Partition Actions | FastCounsel
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New Hampshire: How to Divide or Force the Sale of Co-Owned Farmland

How co-owners can divide or force the sale of farmland in New Hampshire

This FAQ-style guide explains the options heirs and co-owners have when they cannot agree about what to do with jointly owned farmland in New Hampshire. It assumes no prior legal knowledge. It is educational only and not legal advice. For specific steps in your situation, consult a New Hampshire attorney.

Detailed answer — what you can do when heirs can’t agree

1. Try to reach a voluntary solution first

Before filing any lawsuit, attempt to resolve the dispute outside court. Common voluntary options include:

  • One or more heirs buy out the others (buyout) based on an agreed appraisal.
  • The group sells the entire farm to a third party and splits the proceeds.
  • The co-owners form an entity (LLC or family corporation) and adopt a written ownership and management agreement that sets rules for use, expenses, and eventual sale.
  • Lease the land to a farmer and split rents while working toward a long-term plan.
  • Mediation: use a neutral mediator to help the heirs reach a compromise.

2. File a partition action in court when voluntary solutions fail

If the heirs cannot reach agreement, New Hampshire law allows any co-owner to ask the court to divide the property or order its sale. This remedy is called a partition action. Under New Hampshire statutory law, a partition action gives the court authority to divide land among co-owners or order a sale when division in kind is impractical. See the New Hampshire partition statutes (RSA chapter 547) for the governing rules: RSA 547:1 et seq..

How a partition action works (step by step)

  1. File a complaint in the appropriate New Hampshire court (often Superior Court) naming all co-owners.
  2. The court will notify all parties. The case proceeds like other civil actions: pleadings, discovery, and possibly hearings.
  3. The court will decide whether a physical division of the land (partition in kind) is practical. If the court finds the farm can be fairly divided into separate parcels that match the co-owners’ ownership shares, it may order division.
  4. If division in kind would be impractical, unfair, or would substantially reduce the value of the property, the court can order a sale of the whole parcel and divide the sale proceeds among owners according to their shares.
  5. The court may appoint a commissioner, referee, auctioneer, or master to carry out the division or sale and report back to the court.
  6. The court will account for expenses, liens, taxes, and improvements and distribute the net proceeds accordingly.

When the court orders sale instead of division

Courts prefer division in kind when it is feasible and fair. But farmland is often tied together by soil patterns, access, buildings, and conservation restrictions, which can make fair physical division impractical. When division would materially impair value or utility, the court typically orders a public sale and divides the proceeds among owners.

3. Temporary and ancillary remedies the court can grant

While the partition action is pending, the court can:

  • Order accounting for rents, crops, and profits so owners get credit or pay for their share of income and expenses.
  • Authorize a temporary manager or receiver to operate the farm and preserve value.
  • Issue injunctions to prevent one co-owner from damaging the property or taking unilateral actions (for example, selling timber or removing buildings).

4. Alternatives and practical options to consider

Even when partition is available, heirs often choose alternatives to avoid the time, cost, and uncertainty of litigation:

  • Mediation or collaborative negotiation with a neutral facilitator.
  • Structured buyouts using neutral appraisers and escrow agents.
  • Creating an LLC or partnership to run the farm with a buy-sell agreement and defined exit terms.
  • Placing land under a conservation easement (if aligned with co-owners’ goals), which may limit sale options but could offer tax benefits and preserve agricultural use.

5. Tax, program, and title issues to watch for

Several practical considerations affect any decision:

  • Capital gains and estate tax consequences when selling or transferring land.
  • New Hampshire uses property tax programs such as Current Use (RSA 79-A) for working farmland; changes of ownership or subdivision can affect enrollment and result in land use change taxation.
  • Conservation easements or deed restrictions may limit the ability to divide or sell the land.
  • Existing mortgages, liens, or creditor claims can complicate partition and distribution of sale proceeds.

6. Who pays costs and how proceeds are divided

The court typically charges partition costs, attorney fees (in some cases), and expenses of sale or division against the property before dividing proceeds. Each co-owner receives the net proceeds according to their legal ownership share, unless the court orders adjustments for unequal contributions to purchase, improvements, or payments of taxes and mortgages.

7. Timeline and likely outcomes

A partition lawsuit can take many months to over a year, depending on complexity, protests, appraisals, and the need for sale. Many cases settle or lead to buyouts before a final court-ordered sale.

Helpful Hints — practical steps and documents to prepare

  • Collect key documents: deed(s), last will or probate papers if relevant, mortgage statements, tax bills, conservation easements, and any written co-owner agreements.
  • Get a current market appraisal so parties know the property’s fair value before negotiating.
  • Track farm income and expenses, including leases, rents, crop sales, and capital improvements.
  • Talk to a New Hampshire attorney experienced in real estate partition, probate, or farm succession early — they can explain likely outcomes and costs.
  • Consider mediation: it is usually faster and cheaper than litigation and keeps control with the owners.
  • Ask about tax and conservation implications before accepting any sale or easement offer. Contact the NH Department of Revenue Administration or a tax advisor for state tax questions.
  • If you fear an heir will damage the property or remove assets, seek immediate legal advice about temporary injunctive relief and appointing a receiver.
  • Remember that a court-ordered sale can sometimes bring less than a private negotiated sale because of court and sale costs—factor that into any settlement talks.

Where to get help

Contact a licensed New Hampshire attorney who handles partition, real estate, and estate matters. If cost is a concern, check whether local legal aid or a law school clinic can provide guidance or mediation referrals. For statute text and more on partition law in New Hampshire, see the state statutes on partition: RSA Chapter 547 (Partition).

Disclaimer: This article explains general principles of New Hampshire law for educational purposes only. It does not constitute legal advice, and it does not create an attorney-client relationship. For advice about your particular situation, contact a licensed attorney in New Hampshire.

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.