How will the sale proceeds be divided among co-owners after the property is sold in a partition? (ME) | Maine Partition Actions

Detailed Answer

Short answer: In a Maine partition-by-sale, the court first uses the sale proceeds to pay valid liens, taxes, and the costs of sale (court costs, realtor and closing fees, and commonly attorneys’ fees if awarded). Whatever remains is divided among the co-owners according to their legal ownership interests, subject to any court-ordered adjustments (for payments one co-owner made for mortgage, taxes, repairs, improvements, rents or profits, or other equitable offsets).

How division normally works

When co-owners cannot divide land physically, one owner can ask the court to force a sale (partition by sale). Maine law gives the court authority over the process and the distribution of proceeds. The usual sequence is:

Sell the property at public sale or private sale ordered by the court.
From the gross sale price, pay off secured liens that attach to the property (most commonly mortgages and tax liens) in the order of their priority.
Pay costs of the sale and administration — courtroom costs, the sheriff or auctioneer, realtor commissions, closing costs, appraisal fees, and any costs the court orders a party to pay.
Pay any other charges the court orders (for example, mechanics’ liens, specific judgment liens, or established statutory charges).
Divide the net proceeds among the co-owners according to their ownership shares, after the court makes equitable adjustments (credits or debits) for contributions one owner made toward mortgage payments, taxes, necessary repairs, or for rents and profits collected or owed).

Ownership share vs. equitable adjustments

Co-owners’ shares normally reflect the fractional interests shown on the deed (for example, 50% and 50%, or 60%/40%). If the deed is silent, Maine treats co-owners as tenants in common and the court looks to evidence of each owner’s contribution or agreement to determine shares.

The court can adjust distribution to be fair. Typical adjustments include:

Credit for mortgage or tax payments one owner made alone.
Credit for necessary repairs or improvements that preserved or increased value.
Accounting for rents or profits — an occupying co-owner who collected rent or benefitted from occupancy may owe an offset to non-occupying co-owners, or vice versa.
Reimbursement for payments that protected the property from foreclosure or preserved value (subject to proof and the court’s discretion).

Liens and priorities

Secured liens that attach to the land (most notably mortgages and tax liens) have priority and are paid out of sale proceeds before owners get their shares. If a co-owner personally guaranteed a mortgage, that guarantor may have personal liability separate from the partition distribution, but the lien remains a charge on the property.

Hypothetical example

Facts: Three co-owners (A = 50%, B = 25%, C = 25%). Sale price: $300,000. Mortgage balance: $100,000. Sale costs (commissions, closing, court costs): $20,000. Owner B paid $5,000 in taxes and $2,000 for a necessary roof repair.

Calculation:

Gross sale price: $300,000
Less mortgage payoff: $100,000 → $200,000
Less sale costs: $20,000 → $180,000 net
Adjust for B’s outlay: the court may credit B $7,000 before splitting, leaving $173,000 to divide (or apply the credit to B’s share depending on the court’s ruling).
If the court divides by ownership shares after credits: A gets 50% of $173,000 = $86,500; B gets 25% + $7,000 credit = $43,250 + $7,000 = $50,250; C gets 25% = $43,250. Courts can handle the math differently depending on whether credits reduce the common fund first or increase an individual’s share.

The court will explain its reasoning and show the accounting it used to reach the final distribution.

Where to find the law in Maine

Maine’s statutory framework and court rules control partition procedure and the court’s equitable authority. For the text and procedural authority, see the Maine statutes for partition actions (see Title 14 and following sections on partition actions) on the Maine Legislature website and the Maine Judicial Branch for local court procedures:

Practical points and disputes

Common disputes the court resolves include:

Whether a payment by one co-owner was necessary and entitled to reimbursement.
Whether an improvement increases divisible value (and whether the improving owner gets compensated or credited).
How to treat rent collected or forgone occupancy.
Priority and validity of liens and how they reduce distributable proceeds.

The court exercises equitable discretion. That means outcomes can vary depending on evidence and how the judge balances fairness between the parties.

Next steps if you are a co-owner

Collect these documents to prepare for a partition case or a meeting with an attorney: deed(s), mortgage statements, tax bills and receipts, records of repairs and improvements, leases or rent records, and any written agreements among owners. An attorney can help present credits and offsets clearly to the court.

Disclaimer: This article explains general Maine law concepts and is not legal advice. It does not create an attorney–client relationship. For advice about your specific situation, consult a licensed Maine attorney.

Helpful Hints

Know your deed: the deed usually controls each owner’s starting share. If the deed lists fractions, use those to start the split.
Gather receipts: payments for mortgage, taxes, repairs, and improvements can become credits—keep proof.
Expect lien payoff: mortgages and tax liens come off the top of the sale proceeds.
Account for occupancy and rents: If one owner lived in the property or collected rent, the court may order an accounting and offset.
Get an appraisal: a current market appraisal helps the court and parties decide if selling is fair and establishes value for credits tied to improvements.
Consider settlement: courts encourage co-owners to agree on sale and distribution terms. A negotiated split can be faster and cheaper than contested litigation.
Talk to a Maine attorney: partition accounting and equitable credits involve evidence and legal argument. A lawyer can help protect your financial interests in court.
Use official resources: check the Maine Legislature website for statutory language and your local district court for procedure and forms (see links above).