Indiana Partition Laws
How To Partition Real Estate In Indiana Law – Exercising Your Property Rights
When two or more parties are joint owners of a property, sometimes they reach a point where the no longer wish to live together or no longer wish to own property together. When this happens, one or more parties can seek a partition. A partition is a legal remedy to divide property among co-owners. The partition can be voluntary if the parties can come to an agreement as to how to divide the property. However, if all of the owners are not in agreement, they will have to seek a judicial partition through the Indiana courts.
Partitions can happen in two ways. There can be a partition in kind or a partition by sale. A partition in kind divides the property in two (or more, if there are multiple owners) pieces. However, this is not an effective means for splitting up homes or businesses, so in many situations, the partition method is a partition by sale. In a partition by sale, the property is sold at auction, and the parties split the proceeds.
The ways to split the proceeds or the land vary depending on the type of tenancy that the co-owners had. In Indiana, co-owners can either be joint tenants or tenants in common. Joint tenants own property in equal shares, so the division would have to be equal as well. For tenants, in common, though, the land will be divided according to their percentage of ownership.
Indiana is a lien theory state, which means that banks or lenders who hold a mortgage will have to be paid off before any proceeds can be divided between the parties or before any land can be subdivided. If you need to partition land in Indiana, you should speak with an experienced real estate partitions attorney to determine your rights.