Short answer
Yes — under California law a co-owner who pays property taxes or mortgage-related payments on a jointly owned (inherited) home can often recover some or all of those payments in a partition action, but recovery is not automatic. The court will examine who benefited from the payments, whether they were necessary or voluntary, and whether any agreement or offset (for rents, use, improvements, or waste) applies. The court typically orders an accounting and adjusts each owner’s share or awards a money judgment or lien to reflect fair contribution.
Detailed answer — how recovery works in a California partition action
When co-owners (for example, heirs who inherit a house as tenants in common) cannot agree about what to do with the property, any co-owner may file a partition action under California law. A partition action lets the court either physically divide the property (rare for a single-family home) or order a sale and divide the proceeds. The court also resolves accounting issues between co-owners, including payments one co-owner made for taxes, mortgage, insurance, repairs, or improvements.
Relevant statutory framework
Partition actions and the court’s authority to handle the accounting and distribution are governed by the California Code of Civil Procedure (Partition of Real Property). See the Partition statutes beginning at California Code of Civil Procedure section 872.010: CCP § 872.010 et seq.. These statutes give the court authority to order the sale or division of property and to make equitable adjustments among co-owners in the partition process.
Kinds of payments a court may consider
- Property taxes and assessments (regular ad valorem taxes).
- Mortgage payments, including principal and interest, but treatment depends on whether the paying co-owner was paying a joint mortgage or a mortgage in another co-owner’s name.
- Insurance premiums, necessary repairs, and reasonable expenses to protect the property.
- Improvements: the court may allow credit for improvements that increased value, but may reduce recovery to reflect the degree of benefit to all owners or award recovery as a set-off rather than full reimbursement.
- Rents and profits: if the property generated rental income or if one co-owner occupied it exclusively, the court will likely offset reimbursements by rents or a use-and-occupation credit.
How courts typically decide reimbursement claims
In a partition accounting, the court tries to reach an equitable division. Key considerations include:
- Benefit to the co-owners: If payments preserved the property for all owners, the payer is generally entitled to contribution.
- Necessity and reasonableness: The court favors reimbursement for necessary taxes, insurance, and reasonable repairs. Lavish or unnecessary spending may not be fully reimbursed.
- Source of the debt: If the mortgage was a joint obligation on title or the loan was for the property, payments toward principal and interest are usually recoverable in part as contribution. If the debt was solely in another person’s name, recovery may be more complicated.
- Offsets for rents/occupancy: If a co-owner lived on the property rent-free, the court may charge that co-owner for use and reduce the paying co-owner’s recovery accordingly.
- Express agreements: Any written agreement among co-owners (for example, a written promise to pay taxes or to be reimbursed) will strongly influence the outcome.
Typical remedies a partition court can grant
- Credit against the payer’s share of sale proceeds (most common): The amount the payer is owed reduces the payer’s share of the net proceeds from sale or division.
- Money judgment for contribution: The court can enter a judgment requiring other co-owners to pay their share of the expenses.
- Equitable lien or charge: In some cases the court can place a lien or charge on the property to secure reimbursement.
Hypothetical example
Two siblings inherit a house as tenants in common, each owning 50%. One sibling (A) lives elsewhere and pays the mortgage, taxes, and insurance for three years to keep the loan current and avoid foreclosure. The other sibling (B) lived in the house rent-free during that time. In a partition action, the court will likely:
- Order an accounting of taxes and mortgage payments A made.
- Award A credit for necessary payments that preserved the property, subject to any offsets for B’s use of the house (a rent or occupancy credit) and any benefit to B from foreclosure avoidance.
- Adjust the sale proceeds or enter a money judgment so that A recovers a fair share of what was paid.
Practical limits and pitfalls
- Documentation matters: Courts expect receipts, mortgage statements, cancelled checks, escrow records, and tax bills to prove payments.
- Delay can hurt: The longer you wait to seek an accounting or file for partition, the more complicated the accounting and defenses may become (e.g., laches, waiver, or settlement by conduct).
- Not all mortgage payments are fully reimbursable: Principal payments increase equity, which affects distribution; interest and escrowed taxes are treated differently in the accounting.
- Costs and attorney fees: Partition actions can be expensive; the court may or may not award attorney fees depending on the circumstances and statutes.
Where to find the law
Start with the California partition statutes: CCP § 872.010 et seq.. These statutes govern the process and the court’s powers in partition cases, including accounting and sale procedures.
Helpful hints — how to prepare before filing or responding
- Collect documents: mortgage statements, tax bills, insurance invoices, canceled checks, escrow statements, repair and improvement receipts, and any written co-owner agreements.
- Track occupancy and rental value: If someone lived in the house, estimate a reasonable rental value; courts will consider occupancy offsets.
- Request an accounting informally: Sometimes a written demand and an accounting will prompt settlement without litigation.
- Consider alternatives: Partition by sale is common, but co-owners can negotiate buy-outs, refinancing, assumption of mortgage, or selling to a third party to avoid court costs.
- Get local counsel: Partition law and courtroom practice vary by county. An experienced California real estate litigator can evaluate your likely recovery and propose the most cost-effective path.
- Prepare for taxes: Recovering payments may have tax consequences. Consult a CPA about deductibility or capital improvements before closing a deal.
- Act promptly: Filing time and prompt preservation of documents make your claim easier to prove and enforce.