When there is a disagreement between co-owners or partners about how to work together or a dispute about co-ownership, a partition action asks the court to divide the property between the co-owners or partners. California Civil Code §§ 872.010, et seq. contains the rules regarding partition actions. At least one co-owner or partner initiates the partition action with a court action to end the joint ownership relationship and distribute the property or sell the property and distribute the proceeds of the sale. You don't have to have a reason for filing the partition action; you can bring it as a matter of right. If the action involves real estate, then the attorney will immediately file a notice of pending action (lis pendens) to put everyone on notice that there is litigation affecting the title to the property. In California the attorneys' fees and costs for a partition action paid for by one party for the benefit of all parties are typically chargeable to everyone. In other words, the court will apportion those costs and fees amongst all of the owners, typically on a proportionate basis to their ownership interests. These can be paid out of the sale proceeds of the property or business. However, attorneys fees incurred in controversies between the owners are generally not divided-up, but rather must be paid by the individuals themselves. So depending upon your facts, your attorney's fees and court costs may be reimbursed out of the sale of the property or business by the other owners in proportion to their ownership interest. One or more of the co-owners or partners can buy out one or more of the other co-owners or partners. This often happens when there is a dispute about co-ownership. Partition actions often settle. This is because the more everyone fights, the less money everyone gets. An attorney will enter into settlement negotiations to come to a settlement agreement. Usually, they would agree to have the property or business appraised and sold, or one co-owner agrees to buy out another co-owner. Settlement is always less costly and less stressful for the parties.
Answered on Sep 11th, 2015 at 5:04 PM