Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When multiple people co-own estate real property in Kentucky, each owner (cotenant) has equal rights to possess the entire property. However, paying for improvements is another matter. Kentucky law provides methods for a cotenant to seek reimbursement or credit for those improvements, typically through a partition action.
1. Informal Agreement
The simplest route is to reach a written agreement among cotenants before making improvements. Document the scope, cost estimates, and how costs are shared. An agreement avoids disputes and makes reimbursement enforceable as a contract.
2. Contribution for Necessary Repairs vs. Improvements
Kentucky courts distinguish between “necessary repairs” (required to preserve the property) and “improvements” (adding value). Under common law principles, a cotenant who pays for necessary repairs may seek contribution from other cotenants. Improvements that enhance value without consent generally benefit only the payer, but at partition the court can adjust shares.
3. Partition Action and Credit for Improvements
When no agreement exists, a cotenant can file a partition suit under Kentucky Revised Statutes § 381.245 et seq. (KRS Chapter 381). At the hearing, the court will:
- Determine the fair market value of the property and the value before improvements.
- Assess the value added by the improvements.
- Allocate proceeds or land so that the improving cotenant receives credit for the increased value.
Courts have discretion to order an in-kind division (giving specific portions) or a sale with proceeds divided. The improving cotenant’s out-of-pocket costs for improvements that increase property value are typically reimbursed or credited against other cotenants’ shares. (See KRS 381.245.)
Helpful Hints
- Document all expenses: keep invoices, contracts, and proof of payment.
- Communicate early: propose cost-sharing before starting major work.
- Obtain a survey or appraisal: establish the property’s pre-improvement value.
- File a partition suit if negotiations fail: seek reimbursement through the court.
- Consider mediation: a faster, less costly alternative to litigation.