Detailed Answer
Short answer: Under Kentucky law you can often recover property taxes and some mortgage-related payments you advanced on jointly owned, inherited real estate when you bring a partition action — but recovery depends on what you paid, why you paid it, who was legally obligated, and whether the court finds the payments were for the common benefit of the co-owners. The partition statutes give the court authority to require contributions and to adjust distributions equitably.
What a Kentucky partition action can do
A partition action is the procedure co-owners use to divide or sell jointly owned real property and distribute the proceeds. Kentucky’s statutes on partition are found in KRS Chapter 381. The court can order the property divided (partition in kind) or sold and the proceeds divided. When the property is sold, the court will account for liens, encumbrances, and sums advanced for the property, and it can allow credits or adjustments so each co-owner receives a fair share. See KRS Chapter 381 for the statutory framework: Kentucky Revised Statutes (KRS) and the partition chapter (search for Chapter 381).
Taxes: generally recoverable as necessary expenses
Property taxes that you paid to preserve the property are typically treated as necessary expenses incurred for the joint benefit of all co-owners. In a partition, courts commonly allow a credit to the co-owner who paid taxes, with that amount deducted from the payor’s portion of the proceeds or otherwise reimbursed from sale proceeds. To succeed, you should show the tax bills, proof of payment, and that the tax payments were required to prevent loss of the property (for example, to avoid tax sale).
Mortgage payments: more fact-specific
Mortgage payments are more complicated because they relate to a third-party debt secured by the property. How the court treats mortgage payments depends on two main facts:
- If the mortgage was a joint obligation (co-owner(s) were legally liable), a co-owner who paid more than their share can usually recover contribution from the other co-owner(s) for their proportionate share of payments. The court may give the payor a credit against the sale proceeds.
- If the mortgage was only in the decedent’s or another party’s name, or if paying the mortgage primarily reduced principal on the lender’s loan, the paying co-owner may be treated as having advanced funds that benefited all owners. The court can allow reimbursement or impose an equitable lien or claim for contribution, but the relief available depends on equitable principles and the particular facts.
What courts look for
To recover taxes or mortgage payments in a partition action the court will examine:
- Documentation: tax bills, mortgage statements, canceled checks, bank transfers, and receipts.
- Purpose and benefit: whether payments were necessary to preserve the property (taxes, insurance) or were voluntary improvements.
- Who was legally obligated: whether the co-owner(s) were on the mortgage or otherwise legally responsible.
- Accounting for principal vs. interest: payments of interest and taxes are usually treated differently than payments of principal; principal reductions affect the lender’s lien and may change the equity in the property.
- Timing and notice: whether co-owners were notified and whether they consented or refused to contribute.
Typical outcomes
Common results in Kentucky partition cases include:
- Credit for taxes paid and for necessary expenses (insurance, emergency repairs) from sale proceeds before distributing net proceeds to co-owners.
- Credit or reimbursement to a co-owner who paid more than their share of mortgage payments; where appropriate, an equitable lien or a charge against the other co-owners’ shares.
- Offsetting claims: the court balances claims, liens, and advances so distribution among co-owners is equitable.
Practical proof you will need
To make a strong claim in court, gather and present:
- All tax bills for the property and proof of payment (canceled checks, bank statements, receipts).
- Mortgage statements showing principal and interest balances and payment history; canceled checks or bank records proving payments you made.
- Records showing who was on the mortgage and who held title.
- Communications with co-owners about payments or requests for contribution.
- Receipts for insurance, repairs, and other necessary expenses you paid for the preservation of the property.
Example (hypothetical)
Suppose three siblings inherit a house as equal tenants in common in Kentucky. One sibling pays $6,000 in property taxes and $9,000 in mortgage payments over 18 months to avoid foreclosure. In a partition-by-sale, the court will calculate net sale proceeds after paying off the mortgage. From the remaining proceeds, the court is likely to allow the payor credit for the $6,000 in taxes and for a fair portion of the mortgage payments (often the portion that preserved equity or satisfied the lender), so that the paying sibling is reimbursed before equal division, subject to any claim that some payments solely reduced principal benefiting the lender.
How to ask the court for relief
When you file a partition complaint under KRS Chapter 381, clearly plead the sums you advanced for taxes, mortgage, insurance, and necessary expenses and ask the court to order an accounting and credit those amounts against the distribution. Attach documentary evidence. If the case proceeds to sale, ask the court to reserve the right to adjust the distribution after sale to reflect your credits.
Where to find the statutes
Kentucky’s partition statutes are in KRS Chapter 381. You can review the statutes and procedural framework at the Kentucky Legislature’s statute resources: https://apps.legislature.ky.gov/law/statutes/ (search for Chapter 381).
Helpful Hints
- Keep meticulous records: keep tax bills, mortgage statements, canceled checks, bank transfers, and communications with co-owners organized and ready to present.
- Distinguish principal vs. interest: make a clear record of how much of each mortgage payment went to principal and how much to interest.
- Ask for an accounting early: request a formal accounting from co-owners or from the estate to see how obligations were handled before filing a partition.
- Consider buyout negotiation: sometimes it is simpler and cheaper to offer to buy out the other co-owners (or accept a buyout) with agreed credits rather than litigate a partition sale.
- Preserve value: don’t allow tax payments or insurance to lapse; losing the property to a tax sale or foreclosure can destroy recovery options.
- File a partition complaint that specifically requests credits or liens for sums you advanced and attach supporting documents.
- Consult a local Kentucky attorney early if the amounts are significant or if other co-owners dispute the payments.
Important disclaimer: This article explains general Kentucky law principles and is intended for educational purposes only. It is not legal advice. For guidance tailored to your specific facts, consult a licensed Kentucky attorney.