Understanding your options when the court is asked to sell the home (Nebraska)

Disclaimer: This is general information and not legal advice. Use this to understand your options and prepare questions for a Nebraska attorney.

Detailed Answer

When a party asks a Nebraska court to sell real property owned by the parties but does not propose specific buyout terms, the court has several routes it can take and you have several responses available. Which path makes sense depends on whether the request arises in a divorce (dissolution) case, a separate partition action between co-owners, or another type of case. Below are the key options, what each means, and practical steps you can take.

1) Ask the court to decide property division under Nebraska’s dissolution law

In a marital dissolution, the court divides marital property equitably. If one side asks for a sale without buyout terms, you can ask the court to make a full equitable division (for example, letting one spouse buy the other out for an appraised share, or dividing net sale proceeds). The statute that governs disposition of property in a dissolution is Neb. Rev. Stat. § 42-365: the court shall divide property equitably between the parties based on the facts presented. See Neb. Rev. Stat. § 42-365: https://nebraskalegislature.gov/laws/statutes.php?statute=42-365.

What you can do:

File a written response or counterproposal asking the court to set buyout terms (formula, appraisal method, or timeline) rather than ordering an immediate sale.
Ask for temporary orders that assign possession, set who pays the mortgage, taxes, insurance, and who receives credits for payments until the court resolves ownership.
Request the court order an appraisal so the buyout value can be set fairly.

2) If it is a partition action between co-owners, understand the court’s partition powers

When co-owners (including former spouses) cannot agree, a party may bring a partition action. Nebraska’s partition statutes allow courts to order a partition in kind (physical division) or a sale if division in kind is impractical. In practice, courts often order a sale and then divide net proceeds after liens, costs, and expenses are paid. The Partition of Real Property Act governs these procedures; if needed, a party can ask the court for sale or for the court to set terms for buyout or partition in kind (sale vs. division). See Nebraska partition statutes (Partition of Real Property Act), e.g., Neb. Rev. Stat. § 25-21,185 et seq.: https://nebraskalegislature.gov/laws/statutes.php?statute=25-21-185.

What you can do:

Respond to a partition complaint by proposing a buyout: one co-owner refinances and pays the other their share, with the closing supervised or approved by the court.
Ask the court to order an appraisal and set a buyout formula (e.g., appraised value minus mortgage and selling costs, split by ownership shares).
If you want to keep the house but cannot immediately buy out the other owner, request a timeline and terms for buyout (refinance deadline, payment plan, or forced sale at a future date).

3) Negotiate a settlement instead of letting the court order a sale

Settlement is often faster and less expensive than relying on the court. Propose buyout options such as:

One party refinances and pays the other party their share of equity.
One party assumes the mortgage and receives a credit for mortgage payments and improvements; the other gets a cash payment or offset of other assets.
Deferred buyout: set a buyout date (e.g., 12–24 months) and interest on the unpaid buyout amount, with the house sold if no buyout occurs.

Document any agreement and seek court approval if you are in a dissolution so the agreement becomes enforceable.

4) Ask the court for more process rather than an immediate sale

If the opposing side asks only for sale, you can ask the court to:

Order an appraisal and provide opportunity for both parties to submit competing valuations or evidence of contributions.
Set a schedule for mediation or settlement negotiations before sale is ordered.
Issue temporary orders assigning use and payment responsibilities pending final resolution (common in divorce courts).

5) Consider practical consequences of an immediate sale vs. a buyout

Sale pros and cons:

Pros: clean break, immediate division of proceeds, avoids continued mortgage responsibility if parties do not want the home.
Cons: transaction costs (agent fees, closing costs), timing of sale may be unfavorable (market conditions), emotional cost, and potential tax issues.

Buyout pros and cons:

Pros: one party keeps the home, avoids sale costs, can control timing.
Cons: refinancing may be difficult, one party assumes mortgage and maintenance cost, possible liquidity problem for buying party.

6) Evidence and factors the Nebraska court will consider

In dissolution matters, Nebraska courts consider the character of property and what is equitable under the circumstances. When deciding whether to order a sale or allow a buyout, courts look at contributions to acquisition and maintenance, liabilities, tax consequences, and practical considerations like minor children’s needs. See the statute on disposition of property in dissolution: Neb. Rev. Stat. § 42-365.

7) Court-ordered sale procedures and division of proceeds

If the court orders a sale, expect the following practical steps:

Appraisal to establish value; payment of liens and mortgages from sale proceeds.
Payment of selling costs (realtor fees, closing costs) out of proceeds.
Division of net proceeds according to court order or agreement (often after credits for payments, improvements, or separate property claims).

Practical next steps to protect your position

Consult a Nebraska family law or real estate attorney quickly — deadlines for responding to pleadings or asking for temporary relief may be short.
Get a current, credible appraisal and collect mortgage, tax, insurance, and expense records for the property.
Prepare a proposed buyout formula or settlement proposal to present to the other side and the court.
Consider mediation to reach a settlement on buyout terms and avoid sale costs and delay.
If you plan to refinance, begin gathering supporting financial documents (credit reports, income verification, debt statements) early.

Helpful Hints

Do not ignore court papers — file a timely response to protect your right to propose buyout terms or ask for appraisal/temporary orders.
Ask the court for an appraisal before any forced sale so value and equity are clear.
Request temporary orders that place responsibility for mortgage, insurance, taxes, and repairs while the case is pending.
Get cost estimates: realtor commission, closing costs, capital gains/tax impacts, and payoff amounts for liens and mortgages.
Consider tax and retirement consequences if you trade other assets for the house instead of cash buyout — consult a tax advisor as needed.
Mediation can save time and money. A short, well-prepared settlement proposal often moves a case off a contested sale track.
If you are low on cash but want to keep the home, evaluate a structured buyout (installments with security interest) that the court can approve.
Document all payments and contributions carefully — the court will consider who paid mortgage, taxes, insurance, and improvements when dividing net proceeds.

If you want help evaluating a proposed sale order or drafting a buyout proposal, contact a Nebraska attorney who handles family law and real estate issues. They can explain how the statutes and local practice will affect your case and represent you at hearings or mediation.