When co-owners divide sale proceeds: what records a co-owner can be required to produce under New Hampshire law
Disclaimer
This is educational information only and not legal advice. I am not a lawyer. For advice about your specific situation, consult a licensed New Hampshire attorney.
Detailed answer
When two or more people own property together in New Hampshire (for example, as tenants in common), any sale or partition of the property often requires the parties to account for debts, expenses, rents, repairs, and improvements so the net proceeds can be divided fairly. A co-owner generally cannot simply withhold records or unilateral proceeds distribution; courts routinely require evidence to determine each owner’s share.
Key legal ideas that apply in New Hampshire:
- Right to partition and accounting: A co-owner may file a partition action asking the court either to physically divide the property or to order a sale and divide the proceeds. In that action the court will determine each party’s interest and may require an accounting for rents, profits, taxes, mortgage payments, insurance, and necessary repairs. See New Hampshire partition law (statutory provisions governing partition actions) for the governing procedure and remedies: https://www.gencourt.state.nh.us/rsa/html/LVII/547/547-1.htm
- Discovery and production of records: Once a partition (or other civil) suit is filed, New Hampshire civil procedure allows ordinary discovery. That means a co-owner can use requests for production, interrogatories, and depositions to compel the other co-owner to produce mortgage statements, repair invoices, receipts, cancelled checks, bank records, and similar documents supporting claimed expenses or credits. The New Hampshire court has authority to order production of documents relevant to the accounting portion of a partition action.
- Accounting principles: Courts typically offset each co-owner’s share of proceeds by amounts each paid or owed. Examples: if one co-owner paid the mortgage, taxes, insurance, or paid for repairs that were necessary to preserve value, the paying co-owner may claim credit or reimbursement. Conversely, if a co-owner collected rent and did not share it, the court may order that rent credited against that co-owner’s share. The court will look for records to support those claims.
- No unilateral gatekeeping: A co-owner generally cannot lawfully refuse to provide relevant documents indefinitely or insist on full production before any settlement unless a court orders that production. If a co-owner refuses voluntary disclosure, the remedy is usually to seek court-ordered discovery and an accounting as part of a partition action or related lawsuit.
What this means practically:
- If you want mortgage statements and repair receipts before proceeds are split, first request them in writing. Ask for specific documents (monthly mortgage statements for specific time ranges, paid invoices, proof of payment).
- If the other co-owner refuses, you can file a partition action in New Hampshire superior court (or a civil action seeking an accounting). During the case you can serve discovery requests or motions to compel to obtain the documents.
- The court can order an accounting and may offset sale proceeds based on verified records. If a co-owner destroyed or withheld records in bad faith, the court may draw adverse inferences or impose sanctions.
- If urgent dissipation of funds is a risk (for example, a co-owner plans to spend or hide sale proceeds), you can ask the court for temporary injunctive relief or for the court to require proceeds to be held in escrow until the accounting is resolved.
Statutory and procedural references:
- Partition actions and remedies are governed by New Hampshire law (see the state statutes on partition for the statutory framework): https://www.gencourt.state.nh.us/rsa/html/LVII/547/547-1.htm
- Discovery and civil procedure in New Hampshire courts permit document production and motions to compel; specific procedures and local rules apply at the Superior Court level. See the New Hampshire Judicial Branch Self-Help and rules pages for filing information: https://www.courts.state.nh.us/
Bottom line: Under New Hampshire law you cannot typically force a negotiated division of sale proceeds without allowing an accounting. You can require (through written demand and, if necessary, court-ordered discovery) the production of mortgage statements and repair receipts that are relevant to determining each co-owner’s proper share. If the co-owner refuses, the normal remedy is to bring a partition or accounting action and ask the court to order production and to hold or distribute proceeds based on the court’s findings.
Helpful hints
- Make a clear written demand for documents first (email or certified mail). List exact documents and date ranges (e.g., “mortgage statements Jan 2018–Dec 2024; all paid repair invoices for the property since purchase”).
- Preserve evidence: keep copies of your communications, payments, receipts, and photos of repairs. Do not destroy or alter records.
- Collect what you can independently: pull property tax records, mortgage escrow statements (if you have access), homeowner’s insurance claims, bank records showing mortgage or repair payments, and any receipts you possess.
- Consider mediation before filing suit. Many courts encourage or require mediation in partition and property disputes. Mediation can be faster and cheaper than litigation.
- If you must sue, request an accounting and use discovery requests (requests for production, interrogatories, depositions) to obtain mortgage statements, receipts, and proof of payments.
- If sale proceeds are already in dispute or at risk, ask the court for interim relief (escrow, temporary restraining order, or injunction) to prevent dissipation while the accounting proceeds.
- Be specific in claims for credits: courts distinguish between “necessary” repairs (often reimbursable) and “improvements” (which may affect value differently). Provide invoices and proof of payment to support reimbursement or credit claims.
- Hire an attorney experienced in New Hampshire partition and real property accounting if the amounts at stake are significant or if the other co-owner refuses reasonable document production.