FAQ: Getting Your Share of Net Proceeds After a Partition Sale in New Mexico

Short answer: After a court-ordered partition sale in New Mexico, your share of the net proceeds is usually paid out according to the court’s final decree. The clerk of the court or a designated commissioner will pay off liens and sale costs first, then distribute the remaining funds to owners in the proportions the court has determined. If someone refuses to pay you, you can ask the court to enforce its order. This answer explains what typically happens, how to get your money, and what documents and steps you will likely need.

Detailed Answer

1. What a partition sale normally does and who controls the proceeds

A partition action asks a court to divide or sell property owned jointly when co‑owners cannot agree. In New Mexico, once the court orders sale of the property and the sale is completed, the proceeds are collected and held by the court or by a court-appointed commissioner or escrow agent. The court issues a final decree (or order) that confirms the sale, directs payment of liens and costs, and orders distribution of the remaining (net) proceeds to the co‑owners in the shares determined by the court.

2. How the court determines the amount each co‑owner receives

Step 1 — Pay sale expenses: costs of the sale (advertising, auctioneer or real estate commissions if used), court costs, commissioner fees, and any costs awarded by the court come out of the gross sale price.
Step 2 — Pay lien and mortgage holders: recorded mortgages, tax liens, and other valid liens on the property are paid in the order of priority. If the sale proceeds do not fully satisfy a lien, the lienholder may get a partial payment and a deficiency claim against the former owner.
Step 3 — Pay judgment liens and other court-ordered payments: the court will ensure lienholders and creditors are paid as required by law.
Step 4 — Net proceeds distribution: after the above are paid, the court distributes the remainder to the co‑owners according to the ownership interest or according to any specific apportionment the court ordered (for example, 50/50, 60/40, or adjusted amounts if one owner had a superior title, made improvements, paid taxes, or was awarded credits by the court).

3. Typical timeline

Timelines vary. Usually the sale/post-sale steps are:

Sale conducted (public sale or private sale as the court ordered).
Commissioner or escrow agent files a report and accounting with the court that lists the gross sale price, liens, and expenses.
The court confirms the sale or enters a final decree approving the accounting and ordering distribution.
The clerk or escrow agent disburses funds after confirmation. That can take a few weeks to several months, depending on lien clearances and any objections.

4. How to actually receive your money

Follow these steps to get your share:

Obtain a copy of the court’s final decree or the commissioner’s final accounting — this shows the calculations and the ordered distribution.
Contact the court clerk or the escrow agent named in the decree. Ask where the funds are being held, and what documentation they require to release your payment (e.g., photo ID, signed receipt, W‑9 or tax form if the clerk requires it for disbursement).
Confirm the net amount due to you. Get a written statement (a distribution worksheet or settlement statement) that shows the gross proceeds, subtractions (costs, liens, commissions), and your net share.
If the court awarded attorney fees, credits for repairs, taxes paid by one owner, or other adjustments, make sure these are reflected in the accounting and in the check amount.
Accept payment as directed (check from clerk, wire transfer from escrow agent, or other method). Keep copies of receipts and endorsements.

5. What to do if you don’t receive your share on time or someone withholds funds

First, ask the clerk for the exact reason for delay (e.g., unpaid lien, title issue, tax hold, or appeal/objection pending).
If another co‑owner or third party is refusing to pay after the court’s order, file a motion with the court to enforce its decree or to hold the other party in contempt. The court has authority to enforce its orders and to order further remedies.
If you believe the accounting is wrong, you can file an objection or motion to correct the commissioner’s report and ask for a hearing to resolve disputes about credits, liens, or distributions.

6. Example (hypothetical) calculation

Suppose the court orders sale and the house sells for $300,000. Sale and court costs equal $15,000. A mortgage lien of $100,000 is paid from the proceeds. Net after liens and costs = $300,000 − $15,000 − $100,000 = $185,000. If there are two equal co‑owners (50% each) and the court made no other adjustments, each owner would receive $92,500.

7. Where to find the law and forms

New Mexico’s civil courts govern partition actions and the local court rules and the court’s orders control the details of distribution. For official court procedural information, start at the New Mexico Courts website: https://www.nmcourts.gov/. For the New Mexico Legislature and statutes, see the legislature’s website for statute text and searching: https://www.nmlegis.gov/.

Helpful Hints

Keep copies of everything: the court complaint, summons, commissioner’s report, the final decree, settlement statement, and checks or receipts. These prove what you were owed and what you received.
Confirm lien payoff amounts: ask for lien payoff statements so you can verify they were paid from the sale proceeds.
Expect some creditors to file claims after the sale; that can delay distribution until the claims are resolved or paid.
If you need the money quickly, ask the court whether the clerk can release interim distributions (sometimes possible if lienholders consent or when certain claims are resolved).
If you suspect accounting errors, request a written accounting from the commissioner or clerk and, if necessary, file a timely objection with the court.
Tax reporting: the clerk or escrow may request a W‑9 or other tax forms. Keep records for your tax return—partition sales may have tax consequences depending on your basis and whether the sale generated capital gain.
If a co‑owner contributed extra money (mortgage payments, repairs, taxes) before sale, the court may give that co‑owner credit. Make sure any such credits are explained in the accounting and court order.
When in doubt, ask the court clerk for procedural steps. Clerks can explain where money is held and what the official orders require, though they cannot give legal advice.

When to get legal help

This article is not legal advice. If you face disputed liens, a contested distribution, or another co‑owner is not following the court order, consider consulting a real property attorney experienced in New Mexico partition law. An attorney can advise you about filing enforcement motions, objecting to an accounting, or protecting your tax and financial interests.