Quick answer

If you co‑own real property in Hawaii and you want money instead of a physical portion of the property, you generally must either reach an agreement with the other owner(s) for a buyout or ask a court to order a partition by sale. Courts typically prefer an agreement, but if owners cannot agree, a partition action can force sale of the property and distribution of net proceeds according to each owner’s share.

Detailed answer — how the process works in Hawaii

Start with the basics: co‑ownership can take different forms (for example, tenancy in common or joint tenancy). Each co‑owner has a right to their share of the property’s value. If you prefer cash instead of a portion of the land or building, there are two main routes:

1. Private buyout or negotiated sale

   Best first step: try to agree with the other owner(s). A buyout means one co‑owner pays the others an agreed amount in return for their interests. Negotiation or mediation can produce a faster, cheaper result than court. If an agreement is reached, document it in writing and record any deed required to transfer title.

2. Court-ordered partition (including partition by sale)

   If negotiations fail, a co‑owner may file a partition action in the appropriate Hawaii court to divide the property. The court has two typical remedies:

   • Partition in kind: the court divides the physical property among owners when practical (rare for urban parcels or single structures).
   • Partition by sale: the court orders the property sold (public auction or private sale) and divides the net proceeds among owners according to their ownership shares.

   Courts often order sale when physical division would be impractical, would significantly reduce value, or would prejudice any owner. If you want cash rather than a portion of the land, you can ask the court for partition by sale or seek a judicially supervised buyout where one owner deposits the fair cash value and receives title.

What the court considers

The court will consider whether a physical division is feasible and equitable. If a sale is ordered, the sale proceeds are distributed after paying liens, mortgages, taxes, court costs, sale costs, and any adjustments (for example, if an owner paid improvements or spent money in support of the property, the court may order credits or reimbursements before splitting the balance).

How proceeds are calculated and divided

Net proceeds normally follow ownership shares (each owner’s fractional interest). Deductions before distribution commonly include:

• Outstanding mortgages or liens that attach to the property
• Real estate taxes and unpaid assessments
• Costs of sale (broker commissions, advertising, auction fees)
• Appraisal and court fees
• Credits for improvements or contributions by particular co‑owners (when proven)

Practical steps a co‑owner should take

1. Gather proof of ownership: deeds, title report, or chain of title.
2. Get a current appraisal to know fair market value and support any buyout offer or partition valuation.
3. Try negotiation or mediation before filing suit — it saves time and money.
4. If filing a partition action, hire a real estate attorney familiar with Hawaii procedure to draft and file the complaint and handle notices, appraisals, and sale procedures.
5. Be prepared to pay court costs and possibly bond or deposits required by the court while litigation proceeds.

Where to find the law

Hawaii’s statutes and court rules govern property and civil actions. To read the statutes yourself, see the Hawaii State Legislature’s statutes website: https://www.capitol.hawaii.gov. For specific local rules and forms, check the Hawaii State Judiciary website.

Common situations and examples

Example 1 — Co‑owner buyout:

Two siblings own a beach lot as tenants in common. One sibling wants to cash out. They agree on a professional appraisal and a buyout price. The buying sibling secures financing, pays the agreed sum, and the selling sibling signs a deed transferring the interest. No court is involved.

Example 2 — Partition by sale after failed negotiation:

Three friends co‑own a leased commercial building. They cannot agree on management. One files a partition action. The court orders a sale because dividing the building would destroy its commercial value. After paying the mortgage and sale costs, the court distributes net proceeds according to each owner’s interest, with adjustments for one owner who paid a large renovation cost.

Helpful Hints

• Start with negotiation: a voluntary buyout is faster and far less costly than litigation.
• Obtain a professional appraisal and, if negotiating, consider an independent valuation for fairness.
• Document any contributions (repairs, mortgage payments, taxes) that you expect to be credited against proceeds.
• Consider mediation before filing suit; many Hawaii courts encourage or require ADR for property disputes.
• Check for mortgages or liens early — they reduce net proceeds and can affect who must be joined in a lawsuit.
• Understand tax consequences: sale proceeds can generate capital gains tax or affect basis; consult a tax professional.
• Weigh costs: litigation, appraisal, and sale expenses can consume a significant portion of value for lower‑value properties.
• Hire an attorney experienced in Hawaii real estate and civil procedure if a partition action is likely.