Detailed Answer
Short answer: Yes — you can request that a co-owner produce mortgage statements, receipts for repairs, and other records before final distribution of sale proceeds, and a New Jersey court can require an accounting and adjust distributions based on proven contributions. However, whether you can force production and get credit for those payments without filing a case depends on the parties’ cooperation; if the co-owner refuses, you will generally need to use legal process (discovery in a partition or accounting action) to compel documents and ask the court to give or deny credits.
How this works (plain-language explanation with a hypothetical): Imagine three people co-own a Jersey City property as tenants in common. One co-owner paid the mortgage for several months and paid for a new roof. At sale, the gross proceeds are split unless the parties agree otherwise. Under New Jersey law, the court that divides co-owned property has authority to determine each owner’s fair share after accounting for liens, mortgage obligations, taxes, and equitable credits for contributions such as mortgage payments and necessary repairs. To obtain those credits you must be able to prove them with documentation (mortgage statements, cancelled checks, invoices, receipts).
Legal tools and likely outcomes:
- Voluntary production and settlement. The fastest route is to ask the co-owner in writing to produce statements and receipts. If you reach an agreement, put it in writing and distribute net sale proceeds accordingly.
- Partition or accounting action. If the co-owner refuses, you can file a partition (or a separate accounting) in New Jersey Superior Court. The Partition Act and court practice allow the court to order a sale and then decide how to divide net proceeds after accounting for liens and contributions. You may ask the court (through pleadings and discovery) to require the other co-owner to produce mortgage records and repair receipts and to permit you to produce your own evidence of payments.
- Discovery and compelled production. Once litigation starts, New Jersey civil discovery rules let you serve document requests and subpoenas for bank/mortgage records. If the co-owner refuses, you can move to compel production and seek sanctions or evidentiary inferences (for example, the court may disallow claimed credits if the owner fails to produce proof).
What the court will consider when adjusting proceeds:
- Priority of liens: A mortgage lien stays on the property until paid. Sale proceeds usually must first pay off any mortgages or liens. The presence of a mortgage reduces available net proceeds and affects each co-owner’s share.
- Actual contributions: Courts typically credit co-owners who paid mortgage installments, taxes, insurance, or made necessary repairs that preserved or enhanced value. The claimant bears the burden to prove these payments with contemporaneous records (statements, canceled checks, receipts, contractor invoices).
- Benefit to the property: Courts give credit for payments that directly benefited the property (e.g., mortgage principal payments, necessary repairs) but may deny credits for purely personal expenditures or improvements that didn’t increase value proportionally.
- Equitable considerations: New Jersey courts apply equitable principles when dividing proceeds. If one co-owner’s conduct caused waste or unfairness, the court can adjust distributions to remedy inequity.
Relevant New Jersey authority and where to look: New Jersey’s rules and courts regularly handle partition and accounting disputes. For an entry point to the official state resources, consult the New Jersey Legislature and Judiciary websites (for statutory background and local court practice). For statutes and statutes’ text, see the New Jersey Legislature site at https://www.njleg.state.nj.us/. For court practice, discovery rules, and self-help resources consult the New Jersey Courts at https://www.njcourts.gov/. If you plan to litigate, a local attorney can identify the exact statutes and rules that apply to your case and draft discovery requests and motions.
Typical procedural steps (practical checklist)
- Gather your records: bank statements, canceled checks, receipts, mortgage statements, insurance and tax bills, and any communications about payments.
- Send a written demand to the co-owner asking for mortgage statements and repair invoices and propose an accounting or settlement timeline. Keep copies.
- If the co-owner refuses, consult a New Jersey real property attorney about filing a partition or accounting action.
- Use litigation discovery (document requests, depositions, subpoenas) to obtain mortgage statements and receipts from the co-owner or third parties (lenders, contractors, banks).
- At trial or settlement, present your proof of payments and ask the court to credit those amounts against the co-owner’s share of proceeds after liens and sale costs are paid.
Timing and cost notes: Discovery and litigation take time and cost money. If the amounts at stake are modest, balancing litigation cost against likely recovery is important. Mediation or settlement often produces faster and cheaper results.
Bottom line: You can and should require documentation before accepting a simple split. If a co-owner refuses to cooperate, New Jersey courts permit you to use discovery and ask a judge to require production and to credit verified mortgage and repair payments when dividing proceeds.
Disclaimer: This article explains general principles only and is not legal advice. It does not create an attorney-client relationship. For advice about your specific situation, consult a licensed New Jersey attorney.
Helpful Hints
- Put requests in writing and keep copies of all communications.
- Keep your own contemporaneous records (statements, checks, photos of repairs, contractor estimates and invoices).
- Request mortgage payoff statements from the lender — that shows outstanding principal and helps calculate net proceeds.
- Obtain contractor invoices and payment proofs for repairs; courts favor contemporaneous receipts over later recollections.
- Consider mediation before suing — it often yields faster, cheaper resolutions.
- If you proceed to court, preserve evidence and get counsel experienced in New Jersey partition/accounting matters.
- Be aware of deadlines: New Jersey litigation has procedural timelines; a lawyer can advise on timing for discovery requests and motions to compel.