Short answer

Maybe. Whether you can recover mortgage payments, property taxes, insurance, HOA fees, utilities, and other carrying costs from the proceeds when real property is sold in New York depends on who owns the property, what agreements (if any) exist between the owners, and the legal context (for example, a partition action between co-owners or an equitable distribution case in a divorce). New York courts will look at ownership, contribution records, and fairness to decide whether a credit or reimbursement is allowed.

Detailed answer — how New York law treats carrying costs and credits

This explanation assumes no written contract saying otherwise. If an owner paid carrying costs and later seeks to reduce another owner’s share of sale proceeds by those payments, the outcome differs by situation:

1) Co-owners (tenants in common, joint tenants) — partition/accounting principles

When co-owners cannot agree and one brings a partition action, the court can order a sale and distribute proceeds. Courts in New York may require an accounting among the co-owners before distribution. That accounting decides who should be credited or debited for necessary expenditures, including:

Mortgage principal payments that reduced the outstanding loan balance (those payments increase the paying owner’s equity and are normally recognized).
Necessary expenses paid to preserve the property (property taxes, hazard insurance, emergency repairs) — the paying owner can often obtain a credit for these to the extent they were reasonable and necessary.
Routine carrying costs (interest, utilities, HOA fees) — courts may allow contribution claims, particularly if one co-owner paid more than their share and that payment preserved the asset.
Capital improvements (structural repairs or permanent improvements) — these often increase the property’s market value; the contributor may be entitled to reimbursement or an award reflecting the added value rather than simple dollar-for-dollar reimbursement.

In short, partition/accounting focuses on fairness — reimbursing expenditures that preserved or increased the value of the property; not every payment is guaranteed reimbursement in full.

2) Married people and divorce — equitable distribution

In a divorce under New York law, the court divides marital property under the equitable distribution statute. The court considers contributions by each spouse, whether direct or indirect, and may award credit where one spouse paid mortgage or carrying costs from separate funds or otherwise reduced the other spouse’s contribution. The governing statute is Domestic Relations Law § 236-B, which lists the factors the court must consider when dividing marital property: N.Y. Dom. Rel. Law § 236-B.

The court evaluates whether mortgage payments were made from marital funds or separate property, whether payments increased equity, and whether fairness requires a credit or reimbursement. A spouse who used separate funds to reduce mortgage principal may be entitled to reimbursement or a credit against marital distribution; routine payments from marital funds are typically treated differently.

3) Written agreements and title documents

If co-owners have a written agreement (co-ownership agreement, buy-sell, operating agreement for LLC, or a deed specifying rights), the agreement controls. Always check the deed, mortgage, and any operating agreement. Title form (joint tenants vs. tenants in common) does not automatically entitle one owner to full reimbursement but helps determine presumptions of ownership share.

4) Practical and tax effects

Practical: courts expect clear records — canceled checks, bank statements, mortgage statements showing principal vs. interest, invoices for repairs, and proof of tax/insurance payments. Without documentation, claims for reimbursement are weak.

Tax: payments do not always affect capital gains or basis the same way. Mortgage principal payments change an owner’s equity, but interest, taxes, and insurance have different tax treatments. Consult a tax advisor about basis and capital gains when property is sold.

Statutes and where to read them

Key New York statutes and resources to consult:

Equitable distribution statute: N.Y. Dom. Rel. Law § 236-B.
Partition and real property actions: New York Real Property Actions and Proceedings Law (RPAPL) addresses partition procedures; see the RPAPL on New York’s legislative site for the relevant sections: N.Y. RPAPL (Real Prop. Actions & Proc. Law).

Short hypothetical example (illustrative only)

Two tenants in common own a house that sells for $400,000. Owner A paid a mortgage principal of $20,000 from their bank account, $4,000 in property taxes, and $2,000 for an emergency roof repair. Owner B paid none. After paying off the mortgage balance, the net sale proceeds are $300,000. In a partition accounting or negotiated settlement the court or the owners might recognize:

A’s $20,000 principal payments as increasing A’s equity (credit to A).
$4,000 taxes and $2,000 emergency repair as necessary costs to preserve the property (likely credit to A if documented).

If the owners are otherwise equal, Owner A could receive an $26,000 credit before the remaining proceeds are split. The exact result depends on the court’s accounting and any agreements.

Helpful hints

Keep detailed records: mortgage statements (showing principal vs. interest), canceled checks, paid tax bills, invoices, and bank records.
Check title and agreements: deeds, operating agreements, or written co-ownership contracts control when they exist.
Negotiate early: settling contribution and reimbursement issues before a sale avoids litigation costs and unpredictable court rulings.
Consider mediation: co-owners often reach fair settlements faster through mediation than through partition or divorce litigation.
Understand tax impacts: consult a tax professional about how reimbursements and sale proceeds affect capital gains and basis.
Get legal advice: an attorney can evaluate your documents and advise whether you have a strong claim for reimbursement or credit under New York law.

Disclaimer: This post is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. Laws change and results vary by specific facts — consult a licensed New York attorney to explore how the law applies to your situation.