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When Property Co-Ownership Becomes a Problem
Owning property with family members, friends, or business partners can be a smart investment—until disagreements arise. Whether it’s an inherited home, a jointly purchased rental, or land acquired for development, co-owners often reach a point where their interests no longer align. One owner may be ready to sell, while the other insists on keeping the property. Others may argue over maintenance costs, rental income, or use of the property.
When negotiations fail, Arizona law provides a legal solution: a partition action. This process gives a co-owner the right to request a court-ordered division or sale of the property under certain circumstances. But navigating a partition action isn’t always straightforward, and understanding your rights is critical.
What Is a Partition Action?
A partition action provides co-owners of real estate with a legal solution when they can’t agree on managing, using, or selling a shared property. When discussions stall and no voluntary agreement can be reached, a partition action allows one or more owners to petition the court to divide or sell the property. Arizona law recognizes that no co-owner should be indefinitely bound to a property arrangement that no longer serves their best interests or causes financial strain.
Partition actions are particularly useful in cases where emotions run high, such as disputes among siblings who inherit property, former romantic partners who co-own real estate, or business partners who no longer see eye to eye. Without this legal mechanism, co-owners would have little recourse aside from costly and drawn-out negotiations that may never lead to a resolution.
Types of Partition Actions in Arizona
There are two primary ways an Arizona court can partition a property:
Partition in Kind (Physical Division of Property)
This type of partition results in the property being physically divided among the co-owners, with each person receiving a portion that aligns with their ownership interest. Although this might appear to be the simplest solution, it only works in certain situations.
Partition in kind is typically only granted for large tracts of undeveloped land—such as farmland, desert acreage, or vacant lots—where the property can be equitably split without significantly reducing its value. For example, if two siblings inherit a 100-acre ranch in Arizona, a court may divide it into two equal 50-acre parcels, allowing each sibling to take ownership of a distinct section.
However, for homes, commercial buildings, or other developed properties, dividing the asset physically is often impractical. You can’t split a house in half or divide a single commercial building into separate, legally distinct parts in most cases. That’s why most partition actions in Arizona result in partition by sale.
Partition by Sale (Court-Ordered Sale of Property)
If a property can’t be divided without reducing its value or if it’s impracticable to do so, the court orders its sale, with the proceeds distributed among the owners based on their ownership shares, subject to contribution claims by the co-tenants (if applicable).
Partition by sale is the most common outcome in Arizona, especially for:
- Residential homes where co-owners can’t agree on selling, renting, or who should live in the home.
- Commercial properties shared by business partners with differing interests.
- Rental properties where one owner wants to sell but the other prefers to continue renting.
- Homes passed down to heirs who disagree on whether to sell, keep, or rent the property.
The court may mandate that a special commissioner – a licensed realtor – sell the home through a private sale, resembling a traditional real estate transaction.
Why a Partition Action May Be the Only Solution
Ideally, co-owners should try to resolve disputes through negotiation, mediation, or a buyout agreement before turning to the courts. In certain situations, a partition action becomes the only practical solution when:
- One owner refuses to sell or won’t agree to a fair buyout.
- Financial burdens (such as unpaid property taxes, mortgage payments, or maintenance costs) are unfairly placed on one owner.
- Disagreements become unmanageable, and no progress is made toward a solution.
- Co-owners become unresponsive, making it impossible to move forward with the property’s sale or use.
While partition actions provide a legal pathway to resolve these disputes, they can be legally complex and emotionally charged. Before heading to court, it’s crucial to understand the legal process, potential costs, and how to best protect your interests.
When Do You Need a Partition Action in Arizona?
Partition actions are needed when real estate co-owners reach a deadlock over the property’s future. Some common scenarios include:
- Inherited Property Disputes – Siblings or other heirs inherit a home and disagree on whether to sell, rent, or keep it.
- Business Partnerships Gone Wrong – Real estate investors or business partners can’t agree on selling or managing a property.
- Divorced or Separated Couples – Unmarried couples who purchased property together but now want to part ways.
- Disputes Over Property Expenses – One owner refuses to contribute to taxes, maintenance, or repairs, creating financial strain on the other(s).
If co-owners can’t reach a voluntary resolution—such as one party buying out the other’s interest—a partition action may be the only way to break the deadlock.
The Partition Process in Arizona
Initiating a partition action in Arizona requires navigating several legal steps. Though each case differs, the typical process includes:
- Filing the Lawsuit – A co-owner files a partition complaint in the appropriate Arizona court, outlining their ownership interest and the need for partition.
- Legal Notice to Co-Owners – All other owners are served with notice of the lawsuit and given an opportunity to respond.
- Court Evaluation of the Property – The court determines whether a physical division is possible or if a sale is necessary. The court may also determine each co-owner’s ownership percentage and adjudicate any contribution claims, such as reimbursement for mortgage payments, property taxes, maintenance expenses, or investments made by a co-tenant to improve the property.
- Appointment of a Special Commissioner – In some cases, the court appoints a special commissioner – usually a realtor – to oversee the sale or division of the property.
- Property Sale (if Required) – When the court determines that selling the property is the best option, it will usually be placed on the market through a private sale. Once sold, the proceeds are divided among the owners according to their respective ownership percentages and rulings by the court.
- Distribution of Proceeds – After accounting for outstanding property-related debts as well as contribution claims by the co-tenants, the remaining funds are generally divided among the owners.
The timeline can range from several months to more than a year, depending on factors like case complexity, disagreements over ownership shares, financial contributions, or property valuation.
Challenges and Legal Considerations
Partition actions can be complex and contentious, especially when co-owners disagree on key issues. Some common challenges include:
- Contribution Claims – If one owner claims they contributed more to the mortgage, taxes, or repairs, they may seek a larger share of the proceeds.
- Opposition to the Sale – Some co-owners may attempt to object to the demand to sell the property, requiring court intervention.
- Disagreement Over Property Value – Establishing the property’s fair market value can lead to disputes, particularly when co-owners have conflicting opinions on appraisals or market assessments.
- Emotional and Family Conflicts – In cases involving inherited property, emotions often run high, making an already complex legal process even more difficult.
Having an experienced Arizona real estate attorney can help protect your interests, negotiate potential settlements, and ensure the process moves forward efficiently.
Avoiding a Partition Action: Are There Alternatives?
Going to court isn’t always the best or fastest solution. If co-owners are willing to negotiate, there are alternatives to a partition action:
- Buying Out a Co-Owner – One or more owners purchase the other’s share, allowing them to retain full control of the property.
- Mutual Sale Agreement – All co-owners agree to sell the property and split the proceeds without needing court intervention.
- Mediation – A neutral mediator facilitates discussions to help co-owners negotiate a fair resolution without litigation.
- Property Agreement Before Purchase – If you’re planning to co-own property, having a legally binding agreement in place can help avoid future disputes.
While these alternatives can reduce costs, time, and stress, they only work if all parties are willing to collaborate.
Protect Your Rights in a Partition Action
If you’re involved in a jointly owned property dispute in Arizona, you don’t have to navigate the legal process alone. Whether you’re seeking to initiate a partition action or defending your rights in one, Gottlieb Law can provide the guidance and legal expertise you need.
Our experienced Arizona real estate attorneys can evaluate your situation, explore potential solutions, and represent you in court if necessary. Don’t let a property dispute disrupt your finances or peace of mind—contact Gottlieb Law today at 602-899-8188 to schedule your initial consultation or use our Contact Us page.
