How can I get my share of the net proceeds after the partition sale of a co-owned house? (MT) | Montana Partition Actions | FastCounsel
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How can I get my share of the net proceeds after the partition sale of a co-owned house? (MT)

Getting Your Share of Net Proceeds After a Partition Sale in Montana

Not legal advice: This article explains how partition sales and distributions typically work in Montana and what steps you can take to get your share. It is educational only. For advice about your particular case, consult a Montana attorney.

Detailed Answer — How distribution after a partition sale usually works in Montana

When a court orders a partition sale of a co-owned house in Montana, the court (often through the sheriff or a court-appointed commissioner) sells the property, pays the costs and liens, and then distributes the remaining net proceeds to the co-owners according to the court’s decree. The general sequence and rights are:

  1. Sale, collection, and accounting: The court conducts or supervises the sale. After sale, the sale agent files an accounting with the court showing gross sale price, costs of sale (advertising, commissions, trustee or sheriff fees), and liens paid (mortgages, tax liens, judgments). The accounting shows the net proceeds available for distribution.
  2. Priority of payments: Before owners receive anything, valid liens and encumbrances recorded against the property (for example, mortgages, mechanic’s liens, or tax liens) are normally paid from the sale proceeds. Court-ordered fees and costs (including reasonable attorney fees if the court awarded them) are also deducted. What remains is the “net proceeds.”
  3. Division based on ownership interest or court order: The net proceeds are distributed according to the court’s judgment about each owner’s share. If ownership is in percentages (for example, 60%/40%) the court generally distributes the net proceeds in those proportions, unless the court’s partition decree specifies a different allocation (for example, to reflect unequal contributions, liens particular to one owner, or credits). If the owners owned as tenants in common and no special allocation was ordered, distribution will track ownership interests.
  4. Holding of funds and appeals: If an appeal is filed or another party claims an interest in the proceeds, the court may hold the funds in its registry until the dispute is resolved. That can delay distribution. If no appeal or competing claim exists, the court will sign an order approving the accounting and directing distribution.
  5. How you actually get paid: Once the court signs an order directing distribution, the clerk of court or the party handling disbursement will issue checks or arrange electronic transfers. You will usually need to provide ID and tax information (e.g., a W‑9) so the clerk or escrow agent can issue payments and tax reporting forms. The clerk distributes to whoever is named in the court order or accounting; if your name and address are not current in court records, you must update the court or file a notice of address.

Example (hypothetical)

Two owners: Alice (60%) and Ben (40%). House sells for $200,000. Liens and sale costs total $30,000. Net proceeds: $170,000. The court orders distribution per ownership shares. Alice receives $102,000 (60% of $170,000) and Ben receives $68,000 (40% of $170,000), less any amounts the court required to be withheld for specific liens or credits.

What to do if you don’t get your share

  • Ask the clerk of court for a copy of the final accounting and distribution order. That document shows how the clerk calculated the net proceeds and who is entitled to each share.
  • If funds were placed in the court registry, file a motion asking the court to disburse the funds to you in accordance with the final order. Attach proof of identity and your ownership interest (deed, judgment, or decree).
  • If a co-owner is withholding their share or there is an offset (for example, a pre-existing judgment against them), ask the clerk whether the court has applied offsets or credits. The court can order offsets before distribution if a lawful lien or judgment exists against a co-owner.
  • If the court has already ordered distribution but someone failed to pay, you can ask the court to enforce the order — for example by contempt, turnover, or garnishment procedures — or seek collection remedies against the party who received the money improperly.

Relevant Montana resources and laws

Montana’s statutes and court rules govern civil actions, court sales, and distributions. For statutory text and to search for “partition” or related provisions, use the Montana Code Annotated and Montana Courts sites:

These pages let you locate the specific partition or civil procedure statutes that apply to your case and provide contact information for the courts.

Practical steps — How to get your money after a partition sale

  1. Obtain the final court order and sale accounting. Contact the clerk of the court where the partition case was filed and request copies of the final judgment, the sale accounting, and the order approving distribution.
  2. Confirm the net-proceeds math. Verify gross sale price minus liens, costs, and fees equals the net proceeds the court scheduled for distribution. If you see errors, ask the court clerk how to file an objection or motion to correct the accounting.
  3. Provide taxpayer and payment details. Be ready to give the clerk or escrow agent a completed W‑9 (for reporting), a mailing address, and bank information if they can pay electronically.
  4. Check for appeals or liens. If an appeal was filed, or if the court held funds because of a creditor claim, distribution can be delayed. Ask the clerk whether funds are being held and why.
  5. File a motion to compel distribution, if necessary. If the court ordered distribution but the clerk or a co-owner refuses to disburse, you may need to file a motion asking the court to enforce the decree.
  6. If you suspect theft or fraud, act quickly. If proceeds were misapplied (for example, someone cashed a check meant for you), consider filing a motion with the court and contacting law enforcement if appropriate. Collection remedies and contempt can follow.

Helpful Hints

  • Keep copies of all court documents, deeds, and identification. The clerk will need documentation proving your identity and interest.
  • Verify your ownership percentage ahead of time. Disputes about percentages lead to delays; the court distributes according to the recorded ownership or the court’s finding in the partition judgment.
  • Expect lien priority to reduce your check. Mortgages, tax liens, and judgments against the property are paid first from sale proceeds.
  • Update your contact information with the court. If the clerk can’t reach you, payment can be delayed or returned as unclaimed.
  • Watch appeal deadlines. If someone appeals the sale or judgment, funds may stay in escrow until the appeal resolves. Know the appeal timeline and ask the clerk whether the case is stayed.
  • If your co-owner owes money to creditors, the court may withhold or reduce that owner’s share to satisfy liens; check the accounting for any offsets.
  • Consider a short consult with a Montana attorney if: distributions are disputed; accounting seems wrong; funds were mishandled; or you need help drafting a motion to compel payment.

Final note: This is general information about partition sale distributions in Montana. It is not legal advice. Procedures can vary by county and by the exact court order. Contact the clerk of the court handling your case or consult a Montana attorney for instructions tailored to your situation.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.