Detailed Answer
Partition Proceedings Under Wyoming Law
In Wyoming, co-owners of real property may seek a partition action under W.S. § 1-32-101 et seq.. When a parcel cannot be divided fairly without damage or prejudice, the court may order a public sale of the property and allocate the proceeds among the co-owners.
Mortgage Liens and Priority
Wyoming law treats a mortgage as an encumbrance on the real estate. Under W.S. § 34-1-101 et seq., recorded mortgages create liens that run with the land. Senior mortgages (first in time) must be paid before junior mortgages.
Sale and Distribution of Proceeds
Once the court orders a sale, the clerk of district court conducts a public auction. Sale proceeds are first applied to satisfy all recorded liens in order of priority, per W.S. § 1-32-104. After paying off each mortgage and any valid tax or judgment liens, the clerk distributes the net balance to co-owners based on their ownership interests.
Hypothetical Example
Suppose three siblings co-own a ranch in Sheridan County. A bank holds a $200,000 first mortgage; another lender holds a $50,000 second mortgage on the same property. The court orders a partition sale for $300,000. From the sale price, the clerk pays the bank’s first mortgage ($200,000), then the second lender ($50,000). The remaining $50,000 is divided among the siblings according to their fractional shares.
Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Helpful Hints
- Obtain a complete lien search to identify all mortgages and encumbrances before filing a partition.
- Review mortgage priority to understand which liens must be satisfied first.
- Consider whether a partition in kind (dividing the land) is feasible before opting for a sale.
- Work with a title company to clear any clouds on the title.
- Consult a real estate attorney familiar with Wyoming partition law to protect your interests.