How partition sales work in Alabama — the step-by-step process

1. Filing and ownership determination: A co-owner files a partition complaint asking the court to divide or sell the property. The court determines who owns what interest (for example, tenants in common with fractional shares or joint tenants).
2. Partition in kind vs. partition by sale: The court will decide whether the property can be physically divided (partition in kind). If division in kind is impractical or would be prejudicial to owners, the court will order sale and distribution of proceeds.
3. Sale and payment of priority claims: The property is sold (often by an appointed commissioner or at public auction). From the gross sale price, the court directs payment of high-priority encumbrances first — for example, mortgages and recorded liens that attach to the property.
4. Payment of sale-related costs and claims: Next the court authorizes payment of sale costs: advertising, broker or commissioner commissions, auction costs, appraisal fees, and court costs related to the partition.
5. Reimbursements and equitable credits: The court may order reimbursements to co-owners for necessary advances (taxes, mortgage payments, repairs) or may award credits for improvements or waste, depending on the evidence. Alabama courts apply equitable principles to ensure a fair allocation when one owner incurred expenses or caused loss.
6. Distribution of remaining net proceeds: After paying liens, costs, and any court-ordered reimbursements or adjustments, the remaining net proceeds are distributed to the co-owners according to their legal ownership shares (for example, 60%/40%), unless the court has ordered a different equitable division based on specific circumstances.

Because liens and mortgages run with the land, they generally must be paid out of sale proceeds before owners receive their share. Likewise, valid mechanic’s or judgment liens recorded against the property will be satisfied from sale proceeds in the order of priority.

Equitable adjustments the court may order

The court can account for:

• One owner’s payments of mortgage, taxes, or insurance that preserved the property (may be reimbursed).
• Contributions by owners to improvements that increased value (may get credit).
• Damages for waste or wrongful withholding.
• Agreements among owners (written agreements can control division if clear and valid).

Example (hypothetical numbers)

Facts: Two co-owners hold title as tenants in common: Owner A 60% and Owner B 40%. The property sells for $200,000. Outstanding mortgage and recorded lien total $60,000. Sale costs, commissions and taxes equal $12,000. One owner paid $5,000 of necessary repairs before sale and asks reimbursement.

Calculation:

1. Gross sale price: $200,000
2. Less mortgage/liens (paid first): – $60,000 → balance $140,000
3. Less sale costs & commissions: – $12,000 → balance $128,000
4. Reimburse repairs to Owner A (if court awards): – $5,000 → net proceeds $123,000
5. Distribute according to ownership shares: Owner A (60%) = $73,800; Owner B (40%) = $49,200

The court can modify this distribution if one owner proves entitlement to a larger share because of equitable claims.

Where Alabama law comes in

Partition actions are matters of state law and handled by Alabama courts. The Alabama Legislature and courts set the rules for partition procedure, the priority of liens, and the court’s equitable powers in adjusting shares. For primary sources and the official Code of Alabama, see the Alabama Legislature home page: https://www.legislature.state.al.us/. For information about Alabama courts and procedures, see the Alabama Judicial System: https://judicial.alabama.gov/.

Note: Statutory language and case law interpret how courts apply equitable adjustments in partition sales. A local attorney can point to the exact statutes and cases that most directly apply to a particular fact pattern.

Helpful Hints — what to know and prepare before or after a partition sale

• Know how title is held. Tenants in common divide by ownership share; joint tenancy may affect survivorship but does not prevent partition.
• Gather documents: deeds, mortgage statements, lien records, tax bills, receipts for repairs or improvements, and any written agreements among owners.
• Expect liens to be paid from proceeds first. Confirm the payoff figures for mortgages and recorded judgments before sale.
• Document any payments you made for taxes, insurance, repairs or improvements. Bring proof to court to seek reimbursement or credit.
• Keep records of communications and offers. A written agreement among co-owners about sale and division can avoid litigation if followed and valid.
• Ask about sale costs and likely commission rates up front. These reduce net proceeds and change final payouts.
• Consult a local Alabama attorney early if disputes over credits, liens, or share percentages exist — court outcomes often hinge on record evidence and equitable arguments.
• Expect a timeline: partition suits, appointment of a commissioner, sale, and confirmation can take several months depending on complexity and objections.
• Be aware of tax consequences: proceeds distribution may trigger capital gains tax for each co-owner. Consult a tax advisor.