Detailed Answer

Short answer: After a court-ordered partition sale in Michigan, the court or the court-appointed commissioner/sheriff normally pays sale costs, mortgages, liens, taxes, and other legally required charges from the sale proceeds and then distributes the remaining (net) proceeds to the co-owners according to the court’s distribution order. To get your share you must (1) establish your ownership share, (2) make sure liens and sale costs are properly paid, (3) obtain the court’s disbursement order, and (4) follow the court’s procedure to receive the funds or to enforce the order if someone withholds money.

How distribution normally works in Michigan

When a court orders a partition sale (or the parties sell under terms approved by the court), the sale generates gross proceeds. Michigan courts require that certain costs and priorities be satisfied first. Typical deductions include:

Costs of sale (advertising, auctioneer or broker fees, closing costs)
Commissioner or marshal fees (if used)
Recording fees and transfer taxes
Senior liens and mortgages that attach to the property
Property taxes and assessments that are due
Court costs and any amounts ordered to be paid to secure lienholders

After these items are satisfied, the court enters an order directing distribution of the remaining net proceeds. Distribution normally follows the co-owners’ legal interests as shown by title or as determined by the court. If interests are equal, proceeds split equally; if deeds or a court determination assign different percentages, the split follows those fractions.

Common adjustments the court may make

The court can order credits or debits to particular owners before final distribution. For example, a co-owner may receive a credit for:

Payments made for mortgage or taxes during ownership;
Reasonable and necessary repairs or improvements approved by the court;
Rent or income the court determines should be credited or charged.

These adjustments can change the final split of the net proceeds.

Step-by-step practical process to get your share

Confirm your ownership interest: Obtain a copy of the deed and any recorded documents showing your ownership percentage. If records conflict, the court will decide at the partition hearing.
Monitor the sale accounting: The court or the officer handling the sale should file a statement accounting for gross proceeds and itemized deductions. Review that accounting carefully.
Ask for the court’s distribution order: The judge will issue an order showing each deduction and how the net proceeds are to be distributed. That order is the document that authorizes payment.
Provide payee information: Make sure the clerk, the commissioner, or the closing agent has your current contact information and (if required) a signed W-9 or other paperwork so they can issue a check or wire funds to you.
Receive payment: The court clerk or closing agent issues the funds consistent with the court’s order. In many cases the court will direct the clerk to pay co-owners directly or to have the closing agent distribute funds at closing.
If money is not paid: If the court’s distribution order is not honored or if a co-owner refuses to allow a distribution, you can return to the court and file a motion to enforce the order or a supplemental proceeding to collect funds.

What to do if you disagree with the accounting or distribution

If the accounting or distribution appears incorrect, you can object to the accounting or ask the court to review the commissioner’s report before the court signs the final order. Typical disputes include incorrect lien payoffs, improper deductions, or disagreement about credits for improvements or payments. File a written objection or motion with the court and request a hearing. Keep copies of receipts, bank statements, invoices for repairs, cancelled checks, and any evidence that supports your position.

Timing — how long will it take?

Timing varies. Simple partition sales with clear title and few liens can conclude in a few months. Complex cases with multiple liens, title disputes, or objections may take much longer — sometimes a year or more. After sale closing, disbursement generally occurs soon after closing once liens and costs are paid, but the clerk or closing agent may wait until all outstanding claims are resolved.

Hypothetical example

Suppose three co-owners (A, B, and C) each own one-third of a house. The house sells for $300,000. Liens and costs total $60,000 (payoff of mortgage, taxes, sale costs). Net proceeds = $240,000. If no credits or offsets are ordered, each owner receives one-third of $240,000 = $80,000. If Co-owner A had paid an extra $10,000 in repairs that the court credits to A, A’s share might be $90,000 while B and C would receive less accordingly.

When to consult an attorney

Consider hiring a lawyer if:

Title or ownership shares are disputed;
Multiple or competing liens exist and you want to protect your payment priority;
Co-owners allege unequal contributions or demand credits or offsets;
Someone refuses to comply with the court order or appears to be diverting proceeds;
You need help filing objections or motions to enforce distribution.

Where to look for Michigan rules and resources

Michigan law and court rules govern partition procedure and disbursement practice. For general information about Michigan laws and statutes, use the Michigan Legislature’s website: https://www.legislature.mi.gov/. For court-related procedures and forms, see the Michigan Courts website: https://courts.michigan.gov/.

Disclaimer

This article explains general Michigan law principles and common court practice related to partition sale distributions. It is educational information only and is not legal advice. I am not a lawyer. For advice tailored to your situation, contact a licensed Michigan attorney.

Helpful Hints

Keep all records: deeds, mortgage statements, tax bills, cancelled checks for payments you made, invoices for repairs, and sale documents.
Get the sale accounting in writing and review every line item before the court signs the distribution order.
If you expect funds, supply a W-9 and a clear written instruction for how you want to be paid (check or wire) and to whom the check should be made payable.
Watch lien priority: senior mortgages and tax liens typically get paid before co-owner shares.
File timely objections: if you disagree with the account or the commissioner’s report, object early and ask the court for a hearing.
Consider mediation for disputes over credits or contributions — courts often allow parties to settle distribution issues without prolonged litigation.
If funds are improperly withheld after a court order, file a motion to enforce and ask the court for interest and attorney fees if appropriate.