Detailed Answer — How partition sale proceeds are divided under Missouri law
When a court orders a sale of real property in a partition action in Missouri, the net proceeds from that sale are divided among the co-owners according to their legal interests, after paying liens, taxes, costs of sale, and court-ordered adjustments. The court supervises the sale and the distribution to ensure that secured claims and legal expenses are paid and each owner receives their fair share.
Key legal framework
Partition actions in Missouri are governed by Chapter 512 of the Missouri Revised Statutes. The statute explains the right to partition, the court’s authority to order sale instead of division, and the procedures the court follows. See Missouri Revised Statutes, Chapter 512: https://revisor.mo.gov/main/OneChapter.aspx?chapter=512.
Step-by-step explanation of how proceeds are divided
- Sale and collection of gross proceeds. The property is sold (often by a commissioner or sheriff appointed by the court) and the gross sale price is collected and held for distribution under court supervision.
- Payment of prioritized debts and liens. Before owners receive shares, the court orders payment of mortgages, tax liens, mechanic’s liens, and other valid recorded liens from the sale proceeds according to their legal priority. Secured creditors get paid out of the proceeds before owners receive any distribution.
- Payment of sale and court costs. Costs of the partition action—court fees, commissioner or auctioneer’s fees, advertising and sale costs, and any other costs the court approves—are deducted from the remaining funds.
- Reimbursements and credits. The court may allow credits or reimbursements to one or more co-owners for expenses they paid on behalf of the property (for example, property taxes, mortgage payments, or necessary repairs) if those payments were reasonable and properly documented. Conversely, the court may charge an owner for waste or for unequal use by one owner.
- Distribution according to ownership shares. After liens, costs, and court-ordered adjustments, the net balance is distributed to the co-owners according to their legal interests (their ownership shares). If owners hold title as tenants in common, the division usually follows their percentage interests unless the court orders a different equitable adjustment. If title is held as joint tenants with right of survivorship, the survivor’s rights and any severance issues may affect the division prior to sale.
- Court confirmation and final accounting. The court typically reviews and approves the commissioner’s or trustee’s report on sale and distribution, then issues an order directing the final distribution and recording the satisfaction of liens as needed.
Common adjustments and disputes the court addresses
- Mortgage or lien priorities — secured creditors are paid first from proceeds.
- Reimbursement for necessary repairs, taxes, or insurance paid by one co-owner.
- Credit for unequal contributions to purchase or improvements where one co-owner can prove greater investment.
- Offset for rents or profits received by one co-owner from the property while jointly owned.
- Expenses related to maintaining or protecting the property prior to sale.
Simple numeric example
Hypothetical: Two co-owners own a house 60% (Owner A) and 40% (Owner B). The house sells for $200,000. There is a $50,000 mortgage and $5,000 in approved sale and court costs. Owner A paid $2,000 in emergency repairs prior to sale and seeks reimbursement.
- Gross sale price: $200,000
- Less mortgage: $50,000 → remaining $150,000
- Less sale/court costs: $5,000 → remaining $145,000
- Less reimbursement to Owner A (court allows $2,000): remaining $143,000
- Owner A share (60%): $85,800; Owner B share (40%): $57,200
This example simplifies priority liens and does not cover all potential offsets (e.g., unpaid taxes or multiple liens).
When the court may alter equal-percentage distribution
Although distribution commonly follows ownership percentages, Missouri courts can make equitable adjustments. The court can take into account contributions (payments for mortgage, taxes, or improvements), waste, or other equitable considerations and direct the distribution accordingly.
Practical steps for co-owners
- Gather documentation of title, mortgages, liens, tax bills, and records of payments or repairs paid individually.
- Preserve receipts for taxes, insurance, mortgage payments, repairs, and improvements so you can request reimbursement or credit from proceeds.
- Keep records of any rents or income derived from the property and who received them.
- Consider asking the court for an accounting or to appoint a receiver if there is dispute over what payments are owed.
- Discuss settlement possibilities with co-owners before sale — a negotiated division or buyout can avoid litigation costs.
For a full picture of partition procedure and a list of statutory provisions, see Chapter 512 of the Missouri Revised Statutes: https://revisor.mo.gov/main/OneChapter.aspx?chapter=512.
Helpful Hints
- Document everything: save receipts for taxes, mortgage payments, repairs, and improvements — the court uses this evidence to decide reimbursements and credits.
- Check title and lien records early: outstanding mortgages or liens will be paid from sale proceeds and can materially reduce distributions.
- Negotiate before suing: a voluntary buyout or settlement among co-owners can preserve value and avoid legal fees.
- Understand priority: secured creditors (mortgages, tax liens) get paid before owners receive distributions.
- Ask the court for an accounting if you suspect improper charges or unequal treatment prior to sale.
- Get legal help if values, ownership shares, or lien priorities are contested — partition law can raise complex property and equity issues.
Disclaimer: This document is for general informational purposes only and does not constitute legal advice. It summarizes Missouri law about partition sales but does not substitute for advice from a qualified lawyer about your specific situation.