When co-owners sell shared property: documentation, accounting, and dividing proceeds under Michigan law

Quick answer: Yes — you can ask a co-owner for mortgage statements and repair receipts, and you can seek a court-ordered accounting or credit for payments when you divide sale proceeds. However, a co-owner may not be legally required to produce documents outside a formal demand, discovery, or court process. If the parties cannot agree, Michigan courts that handle partition and related equitable claims can order an accounting, allow credits for contributions (mortgage payments, taxes, repairs), and adjust the distribution of proceeds accordingly. See Michigan’s rules for partition actions at the Michigan Compiled Laws, Chapter 600, Part on real property actions (example: MCL 600.3201 and following).

How the process typically works in Michigan

Start with these basic principles, which apply to most co-ownership sales in Michigan:

Mortgage and lender obligations: Any mortgage attached to the property remains payable to the lender regardless of the owners’ internal arrangements. When property is sold, mortgage payoff and liens are usually paid from sale proceeds at closing.
Internal contribution claims: If one co-owner paid mortgage payments, taxes, or paid for repairs, that person can usually seek reimbursement or a credit from the other co-owner(s). That is an equitable claim between owners, not something the lender enforces between owners.
Documentation matters: To obtain a credit or reimbursement, the paying co-owner must prove payments and their reasonableness — mortgage statements, canceled checks, bank records, invoices, receipts, and contractor contracts show the best proof.
Partition and accounting through court: If co-owners cannot agree, a partition action lets a court order sale of the property and can direct an accounting and distribution of sale proceeds, giving credits when appropriate. See MCL provisions governing partition actions and distribution of proceeds (example: MCL 600.3201 and following).

Practical steps you can take now

Make a written request. Ask the co-owner in writing (email or certified letter) for mortgage statements, payoff statements, repair invoices, receipts, canceled checks, and any settlement statements. Keep a copy of your request.
Explain what you want and why. State that you plan to reconcile contributions and that mortgage payoffs and repair costs will affect the division of net proceeds at sale.
Gather your own proof. Collect your mortgage payment history, bank statements, receipts, photos of repairs, contractor agreements, and any written communications asking the other co-owner to contribute.
Try to negotiate or mediate. If both owners agree, they can sign an accounting or settlement agreement that allocates credits before closing. Mediation is faster and cheaper than court.
If negotiation fails, consider a partition action. A Michigan court can order sale and handle an accounting; it can allocate credits for mortgage payments and necessary repairs before distributing proceeds. Refer to the Michigan partition statutes for details: https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-600-3201

What courts usually consider when awarding credits

When a court decides whether to give a credit or reimbursement, it typically evaluates:

Proof of payment (statements, canceled checks, invoices).
Whether the payments were reasonable and necessary (routine mortgage/tax payments vs. discretionary improvements).
Whether work was authorized by the other owner(s) or done to preserve property value.
Whether the paying co-owner sought contribution in a timely way.
Existing liens, mortgages, and the priority of claims — lender payoffs are paid first at closing.

How mortgage payments are treated

Mortgage payments go to the lender; co-owners’ internal disputes over who paid what do not change the lender’s rights. If one co-owner paid more than their share of mortgage payments, that co-owner can seek contribution from the other co-owner(s) or ask the court to credit them at distribution of proceeds. Courts may also recognize an equitable lien or claim for unjust enrichment where justified.

Example scenarios (hypothetical)

Scenario A — Friendly settlement: Two equal co-owners sell a house. Owner A paid the mortgage and has statements showing $8,000 in payments beyond Owner B’s share. They exchange documents, agree that Owner A gets that $8,000 credit, and sign a simple settlement before closing.

Scenario B — Dispute and partition: Owner B refuses to provide records. Owner A files a partition action asking the court to sell the property and to credit Owner A for mortgage payments and documented repairs. The court orders production of records (through discovery), holds an accounting, and adjusts net proceeds based on the evidence.

What documents to request or preserve

Monthly mortgage statements and annual 1098s.
Payoff statements from the lender.
Canceled checks or bank records showing payments.
Invoices, receipts, and contractor agreements for repairs or improvements.
Photos before/after repairs and permits if applicable.
Settlement statements from any prior closings (HUD-1 or Closing Disclosure).
Written communications about contributions, approvals, or requests for reimbursement.

Limits and timing

Don’t wait too long. Evidence gets lost and statutes of limitations can bar some claims. If you suspect the co-owner will not cooperate, preserve documents, send a written demand, and consult an attorney about timing. The court may also have rules about discovery timelines in partition actions.

When to get an attorney

Consider hiring a Michigan attorney if:

The other owner refuses to produce records or negotiate.
Large sums or substantial repairs are at stake.
There are competing liens or complex title issues.
You need help filing a partition action, obtaining discovery, or asking the court for an accounting and credits.

Relevant Michigan law and further reading

Michigan law provides a statutory framework for partition and related procedures; where helpful, courts apply equitable doctrines (accounting, contribution, unjust enrichment) to allocate proceeds. For statutory text on partition procedures, see Michigan Compiled Laws, Chapter 600 (example starting point): https://www.legislature.mi.gov/mileg.aspx?page=getObject&objectName=mcl-600-3201

Helpful hints

Make all requests in writing and keep copies of everything.
Record mortgage payoffs and repair costs contemporaneously — receipts beat memory.
Ask for a payoff statement from the lender near the closing date to verify outstanding balance.
Use mediation to resolve disputes faster and cheaper than court.
Understand that the lender’s payoff has priority at closing; internal credits come out of the remaining net proceeds.
If you file in court, use discovery to compel production of statements and receipts.

Disclaimer: This article is informational only and does not constitute legal advice. It explains general principles under Michigan law and should not replace consultation with a licensed Michigan attorney about your specific situation.