Detailed Answer — how a co-owner obtains monetary compensation (overview)

When two or more people own real property together in Virginia (as tenants in common or joint tenants), a co-owner who does not want a physical portion of the property can seek monetary compensation in one of two main ways: (1) reach a voluntary buyout agreement with the other owner(s), or (2) file a partition action asking the court to order a sale of the property and division of the net proceeds. Courts prefer dividing property in kind when practical, but they will order sale and division when a physical division would be impractical or unfair.

Virginia’s civil procedure rules and statutes that govern partition claims are found in Title 8.01 of the Code of Virginia. See the Code of Virginia, Title 8.01: https://law.lis.virginia.gov/vacode/title8.01/ (see Va. Code § 8.01-99 et seq. for partition procedures).

Voluntary buyout (the fastest, cheapest route)

A co-owner can negotiate to buy out the others (or be bought out) based on an agreed valuation. Steps typically include:

• Obtain a current appraisal or market valuation.
• Account for mortgages, liens, taxes, and agreed credits (for repairs, contributions, or unequal investments).
• Document the agreement in writing and record new deeds if ownership changes.

Voluntary settlements let owners avoid court costs, long delays, and unpredictable outcomes.

Partition action leading to sale and division of proceeds

If co-owners cannot agree, any co-owner may file a partition suit in the appropriate Virginia circuit court asking the court to divide the property or order a sale and distribute the proceeds. The court will consider whether a partition in kind (physical division) is practical. If it is not practical or equitable, the court will order a sale and direct distribution of the net sale proceeds among the owners in proportion to their ownership interests, subject to liens, mortgages, and costs of sale.

Key points the court will address:

• Ownership shares. The court divides proceeds according to each co-owner’s legal share (e.g., 50/50, 60/40) unless the parties have an agreement to the contrary.
• Liens and mortgages. Secured creditors are paid from sale proceeds before owners share the remainder.
• Costs and expenses. Court costs, commissioner or sheriff fees, broker and closing costs reduce the gross sale proceeds.
• Adjustments. The court can allow credits or debits for things like substantial improvements, waste, or payment of expenses by one co-owner on behalf of all.

Procedure and timing: partition suits are filed in circuit court. Expect several months (or longer) from filing to final distribution, depending on whether the case is contested, whether the court orders appraisal, or requires a commissioner to handle the sale.

How distribution typically works (simple hypothetical)

Example: Two co-owners, A (60%) and B (40%), own a house appraised at $300,000. The property has a mortgage of $50,000 and expected sale costs of $10,000. Net sale proceeds = $300,000 − $50,000 − $10,000 = $240,000. A would receive 60% of $240,000 ($144,000); B would receive 40% ($96,000), unless the court orders adjustments for improvements, contributions, or liens.

How Virginia courts treat partition requests

Virginia courts have discretion to order sale rather than physical division when division in kind would cause prejudice or be impractical. The court may appoint a commissioner or direct a realtor auction to sell the property. The sale proceeds are held by the court or commissioner until liens and costs are paid and the court orders distribution.

Because state law sets formal procedures for partition actions, co-owners should be ready to provide proof of title, proof of ownership percentages, mortgage statements, and records of payments for taxes, maintenance, or improvements that may affect distribution.

Practical steps to pursue monetary compensation instead of physical property

1. Confirm ownership type and percentages (review deed and title).
2. Get a professional appraisal to establish fair market value.
3. Collect mortgage, lien, tax, and payment records.
4. Attempt a negotiated buyout (preferably with a written agreement and escrow instructions).
5. If negotiation fails, consult a Virginia property attorney about filing a partition action in circuit court.
6. Be prepared for court-ordered sale procedures, liens to be satisfied, and possible credits or charges for improvements or expenses paid by one party.

When a co-owner might get extra credit or owe a deduction

The court can adjust distributions to reflect equitable considerations. Examples include:

• Credit to a co-owner who paid more than their share of mortgage payments, property taxes, or insurance.
• Credit for substantial improvements that increased property value (but routine maintenance usually does not qualify).
• Debits for waste or damage caused by a co-owner.

Helpful Hints

• Get a written appraisal before negotiating or filing suit. It sets expectations and supports settlement talks.
• Document payments: keep receipts, bank records, and canceled checks for mortgage, tax, utility, and improvement expenses.
• Consider mediation before or during a partition suit to save time and costs.
• Account for taxes: selling may create capital gains tax liabilities. Consult a tax advisor about consequences.
• Remember secured creditors are paid first. Outstanding mortgages and liens reduce owner proceeds.
• Costs can add up: attorney fees, court costs, appraisal and sale costs reduce net recovery.
• If you want a buyout, obtain title insurance and use escrow to close safely and cleanly.
• Act promptly to preserve claims; long delays can complicate evidence, valuations, and tax consequences.

Where to look for the law

Virginia partition law appears in the Code of Virginia under Title 8.01. For general statutory structure and to locate specific partition provisions, see: https://law.lis.virginia.gov/vacode/title8.01/