Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When co-owners enter a joint sale agreement in Wisconsin, each owner must share carrying costs such as mortgage payments, property taxes, insurance premiums, and routine maintenance. Recovering these costs requires clear documentation, timely demand, and, if necessary, a court action.
1. Identify and Document Carrying Costs
Compile all expenses from the date of ownership or the date your co-owner stopped contributing. Common carrying costs include:
- Mortgage interest and principal payments
- Real estate taxes
- Homeowner’s insurance premiums
- Utility bills and maintenance costs
2. Calculate Each Owner’s Pro Rata Share
Determine each owner’s ownership percentage—often equal shares unless otherwise specified in the deed or agreement. Multiply the total carrying costs by the co-owner’s percentage to find the amount owed.
3. Send a Written Demand
Draft a demand letter detailing the total costs, your calculations, and a deadline for payment. Send it via certified mail with return receipt to establish proof of service.
4. File a Partition Action if Necessary
If your co-owner fails to pay after your demand, you can file a partition action under Wisconsin law. The court may order the sale of the property and apportion carrying costs among the proceeds or award you direct reimbursement. See Wis. Stat. § 842.10 for court valuation of improvements and waste.
5. Consider a Small Claims or Breach of Contract Claim
For amounts up to $10,000, you can pursue a small claims action in your county’s circuit court. If your joint sale agreement is in writing, a breach of contract claim may apply. Wisconsin’s statute of limitations for written contracts is six years. See Wis. Stat. § 893.28.
Helpful Hints
- Keep a detailed ledger or spreadsheet of each carrying expense and payment date.
- Include a clear cost-sharing provision in any written joint sale agreement.
- Send demand letters via certified mail to document notice and response deadlines.
- Explore mediation or arbitration to resolve payment disputes before filing suit.
- Track the six-year statute of limitations for written contract claims under Wis. Stat. § 893.28.