Detailed Answer
When co-owners enter a joint sale agreement in Alaska, each party shares responsibility for ongoing costs—property taxes, insurance, maintenance, and mortgage interest (collectively called carrying costs). Alaska law allows a co-owner who advances these costs to seek reimbursement from other co-owners through a partition action or a separate suit for contribution.
1. Identify and Document Carrying Costs
List all expenses incurred on behalf of the property since the agreement date—tax bills, insurance premiums, utility invoices, mortgage statements, and repair receipts. Keep original invoices and proof of payment.
2. Calculate Each Co-owner’s Share
Divide total carrying costs by each co-owner’s ownership percentage. For example, with 50/50 ownership and $10,000 in costs, the other party owes $5,000.
3. Send a Written Demand
Prepare a formal demand letter summarizing expenses, attaching documentation. State the amount owed, payment deadline (e.g., 30 days), and consequences of nonpayment.
4. File for Contribution or Partition
If the co-owner refuses to pay, you may file an action for contribution or a partition action under Alaska Statutes. Alaska’s partition statutes (AS 34.20.010 – Purpose of partition; AS 34.20.030 – Partition by sale) allow the court to sell the property and distribute proceeds after accounting for each party’s advances.
5. Request an Accounting
In your pleadings, ask the court to order an accounting of all carrying costs. The judge can credit your advanced costs against the other co-owner’s share of sale proceeds.
6. Consider Statutes of Limitations
Contract actions in Alaska typically have a 3-year statute of limitations (AS 09.10.070). File your claim before time runs out.
Disclaimer: This article is for educational purposes only and is not legal advice. Always consult a qualified attorney.
Helpful Hints
- Maintain organized records of all expenditures and communications.
- Calculate interest on unpaid contributions if your agreement allows or state law provides.
- Consider mediation before filing a lawsuit to reduce time and costs.
- Review your joint sale agreement for specific clauses on cost sharing and dispute resolution.
- Seek legal help early to protect your rights and avoid missed deadlines.