Dividing or Forcing Sale of Co-Owned Farmland in Montana
Disclaimer: This is general information, not legal advice. Consult a Montana attorney about your specific situation.
Detailed Answer — What typically happens and what Montana law allows
This section explains the common steps when co-owners of farmland wish to split the land or force a sale under Montana law. It assumes co-owners cannot reach a voluntary agreement. The process begins with identifying ownership rights and often ends with either a physical division (partition in kind) or a court-ordered sale (partition by sale).
1. Confirm the nature of ownership
Determine whether owners hold the farm as joint tenants (with right of survivorship) or tenants in common (each owner has a fractional interest that can be transferred). Ownership type affects who can force partition and how interests pass after death. Review deeds, wills, and title documents.
2. Try voluntary resolution first
Court action is costly. Common alternatives include negotiating a buyout, selling the property privately and splitting proceeds, or agreeing to a partition plan. Consider mediation or arbitration to avoid litigation.
3. Gather documents and evidence
Collect deeds, mortgages, leases, tax records, surveys, and documents showing improvements or investments. Obtain an up-to-date survey and an independent appraisal to establish current market value and to see whether a practical division is possible.
4. File a partition action in district court if negotiations fail
When co-owners cannot agree, any owner can file a civil action asking the Montana district court to partition the property. The court will notify all interested parties and give them a chance to appear and assert claims.
5. Court determines whether partition in kind or partition by sale is appropriate
Montana courts generally prefer partition in kind — physically dividing the land so each owner receives a separate parcel — if that division is fair and practicable. If division would be impractical or would materially prejudice the owners (for example when the land cannot be fairly divided without wrecking its value or when access, irrigation, or improvements make division unworkable), the court will order partition by sale and distribute proceeds among owners according to their interests after deducting liens, costs, and expenses.
For official Montana statutes and to review the code governing property and civil procedure, see the Montana Code online: https://leg.mt.gov/bills/mca/.
6. Appointment of commissioners or referees
If the court orders partition in kind, it often appoints neutral commissioners (or a referee) to survey, map, and recommend how to divide the property. Commissioners may hold hearings, consider improvements and contributions, and prepare a report for the court. The court may adopt, modify, or reject the report.
7. Partition by sale procedure
If the court orders sale, it will typically appoint a person to advertise the property and hold a public auction or supervised sale. Sale proceeds pay lienholders, court and sale costs, and then are distributed to co-owners according to their ownership shares. The court may confirm the sale after a period for objections.
8. Handling liens, mortgages, and third-party interests
Liens, mortgages, and other encumbrances remain attached to the property. During a partition, the court will address how lienholders are paid from the sale or how liens affect distribution following division in kind. Co-owners who contributed to improvements or who hold claims for unequal contributions can seek adjustment or credits in the distribution.
9. Possible defenses and counterclaims
Co-owners can raise defenses such as asserting a binding agreement that prevents partition, claiming creditor rights or statutory exemptions (e.g., homestead protections where applicable), or raising equitable claims like adverse possession or accounting for unequal contributions. The court resolves those claims as part of the partition action.
10. Timeline and costs
Partition cases can take months to over a year depending on complexity, surveys, appraisals, and court schedules. Costs include filing fees, attorney fees, surveyor and appraiser fees, commissioner fees, and sale or auction expenses. If you are a co-owner considering partition, budgeting for these costs is important.
11. Practical outcomes
Possible outcomes include a new deed showing each owner’s individually parceled land, one owner buying out others, sale to a third party and distribution of proceeds, or, rarely, a settlement that restructures ownership (e.g., creating leases or business entities to operate the farm).
To read Montana statutes and see specific provisions that could apply to partition, liens, and property interests, consult the Montana Code: https://leg.mt.gov/bills/mca/. For procedural rules, the Montana Judicial Branch and local district court clerk can explain filing requirements and forms.
Helpful Hints
- Start with the deed and title: confirm each owner’s share and whether the deed creates joint tenancy or tenancy in common.
- Get a current survey and market appraisal early to evaluate whether physical division is realistic.
- Attempt mediation or a buyout before filing court papers to save time and money.
- Identify and address mortgages, unpaid taxes, and liens before partition; these affect net proceeds or feasible division.
- Document contributions: keep records of improvements, payments, and work that could justify credits at distribution.
- Consult a Montana real property attorney before filing; they can explain local practice, likely outcomes, and costs.
- Ask the district court clerk in the county where the land sits about filing rules, fees, and whether local forms exist.
- Be prepared for negotiation after filing — many cases settle once parties see appraisals and the likely court outcome.