Getting Your Share of Net Proceeds After a Partition Sale in Missouri
Detailed answer — how distribution works and steps to get paid
When a co-owned house is sold through a court-ordered partition in Missouri, the court supervises the sale and then orders how the net proceeds will be distributed. “Net proceeds” means the sale price minus amounts the court orders paid out first — typically mortgages, liens, property taxes, sale and court costs, and any statutory commission or fees. The partition statute and related court procedures govern the process. See Missouri Revised Statutes, Chapter 512 (Partition): https://revisor.mo.gov/main/Chapters.aspx?chapter=512.
Typical timeline and key steps
- Court authorizes sale: The court issues an order that allows a commissioner or sheriff to sell the property if partition in kind (physical division) is impractical. This starts the sale process under Chapter 512.
- Sale and confirmation: The property is sold, usually at auction or by other court-ordered method. The sale is later confirmed by the court after objections (if any) are resolved.
- Payment of secured debts and costs: Before owners get shares, liens (mortgage, tax liens), unpaid property taxes, sale expenses, and court costs are paid from the gross sale proceeds. The court’s distribution order will list these deductions.
- Calculation of each owner’s net share: After deductions, the court allocates the remaining net proceeds among co-owners according to their legal interests (for example, ownership percentage, direction in deed, or court finding). If one co-owner contributed repairs, taxes, or mortgage payments that courts find should be credited, those adjustments can change each party’s final share.
- Distribution and payment: The court enters a final distribution order. The clerk or a designated receiver (often the court-appointed commissioner or an attorney escrow) disburses funds by check or wire to each owner or to their attorneys or lienholders according to the court order.
How you can make sure you actually receive your share
- Confirm the court’s distribution order: Obtain a copy of the order that confirms the sale and directs distribution. This document shows how the court calculated the net proceeds and lists payees and amounts.
- Check the math and deductions: Review the sale price, mortgage and lien payoffs, taxes, and sale costs. If something looks wrong, you can ask the court for an accounting or file an objection before distribution is finalized.
- Provide updated payment information: Tell the court clerk or the commissioner where to send your funds (address, whether you want a check or a wire). Courts or clerks typically will not guess where to send money — you should provide instructions and any required identification.
- Receive funds from the clerk or escrow: After the court signs the distribution order, the clerk or receiver usually issues payment. Payment may be a check from the clerk of the court, a wire transfer, or funds paid to an attorney’s trust account for distribution.
- If payment is withheld or contested: If co-owners or lienholders dispute distribution, the court can hold funds in escrow until the dispute resolves. If the court orders distribution and someone refuses to deliver your share, you may return to court to enforce the order (e.g., motion for contempt or writ of execution).
Example (hypothetical)
Suppose three co-owners—A (50%), B (30%), and C (20%)—sell a house in partition for $300,000. The mortgage payoff is $100,000, unpaid taxes are $5,000, sale and court costs are $15,000, and a valid lien for $10,000 must be paid. Total deductions = $130,000. Net proceeds = $170,000. A’s legal share = 50% of $170,000 = $85,000; B’s = $51,000; C’s = $34,000 (subject to any court-ordered credits or adjustments for contributions or liens affecting individual shares).
Common reasons people do not immediately get their share
- Liens or mortgages must be paid first.
- The court holds funds pending resolution of disputes or claims for credits (repairs, taxes paid by one owner, etc.).
- Missing or incorrect payment instructions to the clerk/receiver.
- Clerical delays in issuing checks or arranging wires.
If the court’s distribution order is wrong or you never receive funds
You may request an accounting from the court, file a motion to reconsider the distribution, or ask the court to enforce its order. If a co-owner or third party refuses to comply with a court-ordered distribution, you can ask the court to enforce the order (for example, by contempt or writ). Work quickly: courts often set short deadlines for objections after a sale confirmation.
Key Missouri law reference: Missouri Revised Statutes, Chapter 512 (Partition): https://revisor.mo.gov/main/Chapters.aspx?chapter=512. That chapter governs partition actions, sales, and related procedures in Missouri courts.
Practical next steps: Get a copy of the final sale confirmation and distribution order from the court clerk. Review deductions. Provide clear payment instructions. If you spot an error or do not receive payment within a reasonable time after the court’s order, contact the clerk, and consider filing a motion in the partition case asking the court to order payment or to provide an accounting.
Helpful hints
- Keep copies of deeds, the partition complaint, the court’s sale confirmation, and the distribution order.
- Compile all documents showing mortgages, liens, tax bills, and receipts for payments you made toward the property; these can affect credits and distribution.
- Confirm whether the court will issue a single check to be divided by co-owners or will issue separate payments to each owner or to attorneys/lienholders.
- Provide the court clerk with your current mailing address and preferred payment method (some clerks can accommodate electronic transfer instructions).
- If you expect tax consequences, consult a tax professional about reporting capital gains or losses from the sale.
- Consider attempting a settlement agreement with co-owners before or during the partition to speed distribution and reduce costs.
- If you cannot resolve a dispute or the facts are complex (competing liens, contested credits for repairs/payments), consult a Missouri licensed attorney experienced in real estate litigation for specific guidance.
Disclaimer: This article explains general Missouri procedures and does not provide legal advice. I am not a lawyer. For advice about your specific situation, contact a licensed Missouri attorney familiar with partition actions and real estate distribution.