Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed Delaware attorney for advice specific to your situation.
Detailed Answer
Under Delaware law, co-owners of estate real property can seek reimbursement for improvements by initiating a partition action or an accounting in equity. The courts recognize that one co-owner who pays to enhance the property’s value should not bear the entire cost when ownership is eventually divided or sold.
1. File a Partition Action
Delaware’s partition statutes (Title 10 Del. C. §§ 7701–7721) allow any co-owner to ask the court to divide or sell the property and distribute proceeds. When you file this action, you can request credit for improvements that increased market value.
- Cite 10 Del. C. § 7713 (Reimbursement and allowances): 10 Del. C. § 7713. The court may order that the costs of improvements be deducted from your share of proceeds.
- Provide documentation: keep invoices, contracts and before-and-after property appraisals to prove the value added.
2. Seek an Accounting in Equity
If co-owners do not wish to partition immediately, you can petition the Court of Chancery for an equitable accounting. The court will examine each owner’s contributions and may order compensation for improvements.
- File a bill for an accounting under Delaware equity rules.
- Demonstrate that the work enhanced fair market value and was not for personal use only.
3. Negotiate a Private Settlement
Before court intervention, communicate with co-owners. A written agreement can allocate improvement costs and reduce fees and delays. Consider mediation or neutral valuation experts to confirm the added value.
Helpful Hints
- Document every payment: keep receipts, canceled checks and contractor invoices.
- Order a professional appraisal before and after improvements to show clear value increase.
- Check your deed or any co-ownership agreement for clauses on improvements and cost sharing.
- Act promptly: Delaware’s general statute of limitations for property claims is three years (10 Del. C. § 8106).
- Consider tax implications: discuss with an accountant whether improvement costs affect basis and capital gains.
- Consult a Delaware real property attorney to guide you through filing and court procedures.