How is property divided in an actual partition of real property when some acres are better than others – ND | North Dakota Partition Actions | FastCounsel
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How is property divided in an actual partition of real property when some acres are better than others – ND

Detailed Answer: How North Dakota courts divide land when some acres are clearly worth more than others

This FAQ-style article explains, in plain language, how an actual partition of real property works in North Dakota when parcels or acres differ in value (for example, some acres are irrigable and near a road while other acres are rough and low-value). It summarizes the court’s options, the typical procedures, how value differences are handled, and gives a simple hypothetical showing how money adjustments work. This is educational information only — not legal advice.

What is a partition? (Short explanation)

A partition is a court process that ends shared ownership of real property so each owner receives their own separate share. In North Dakota, a co-owner can ask a court to either divide the land physically (partition in kind) or order a sale and divide the proceeds (partition by sale) when a fair physical division is impractical. See North Dakota Century Code, Chapter 32-19 for the statutory framework: NDCC Ch. 32-19 (Partition of Real Property).

Which outcome does a North Dakota court choose: divide the land or sell it?

The court considers whether the land can be divided fairly and conveniently without substantially diminishing total value. If it can, the court will try a partition in kind (each owner receives specific acres). If fair physical division would be impractical or produce obvious inequity, the court may order a sale and divide the money. The court often appoints commissioners or experts to survey and appraise the property and recommend a division or a sale price. These procedures and the court’s discretion are governed by NDCC Chapter 32-19: https://www.legis.nd.gov/cencode/t32c19.html.

How do courts handle different-quality acres when they try to divide the land physically?

When some acres are clearly more valuable, the court aims to make each co-owner’s share equal in monetary value, not necessarily equal in acreage. The typical tools are:

  • Allocate better acres to one owner and poorer acres to another, then require a cash equalization payment (a buyout or money adjustment) so each owner ends up with the same overall value.
  • Let an owner buy out another owner’s interest in the better portion by paying that owner the fair value of the interest they are giving up.
  • If physical division cannot achieve equal values without serious complication, order a sale and divide the net proceeds according to owners’ interests.

Who decides the values and how are adjustments calculated?

The court typically uses appraisals prepared by qualified appraisers or a report from court-appointed commissioners. The appraised values drive the equalization math. The court may consider:

  • Market value differences per acre (e.g., irrigated vs. non-irrigated).
  • Access (road frontage), improvements (barns, homes), fences, and utility hookups.
  • Mineral rights or other special rights that increase value.
  • Existing mortgages, liens, rents and profits, and payments made by one co-owner for taxes or improvements — all of which affect net distribution.

Hypothetical example showing a simple equalization calculation

Plain-language example to show how a court can use money adjustments to equalize value:

Facts:

  • Two co-owners (Owner A and Owner B) each own 50% of a 100-acre tract.
  • The 100 acres split into two physical types: 40 acres high-quality (near road, irrigable) and 60 acres low-quality (rough pasture).
  • An appraiser values the high-quality acres at $2,000/acre and the low-quality acres at $500/acre.

Value math:

  • High-quality 40 acres = 40 × $2,000 = $80,000
  • Low-quality 60 acres = 60 × $500 = $30,000
  • Total property value = $110,000; each owner’s 50% share = $55,000

Options the court might implement:

  1. Partition in kind with cash equalization: give Owner A the 40 high-quality acres (value $80,000) and give Owner B 60 low-quality acres (value $30,000). To equalize, Owner A must pay Owner B $25,000 so each ends up with $55,000 in net value.
  2. Buyout: if Owner B wants only the better acres, Owner B could pay $25,000 to Owner A (or the reverse depending on who keeps what) to reach equal values. The court will confirm fair value and order transfers and payments accordingly.
  3. Partition by sale: if the court finds a fair in-kind split infeasible, it may order sale of the whole tract and divide net proceeds ($110,000 less costs, liens, and sale expenses) equally unless another split is justified by agreement or court findings.

Adjustments for liens, mortgages, improvements, rents, and taxes

Before final distribution, the court addresses encumbrances and accounting questions. Typical adjustments include:

  • Paying off mortgages or liens from sale proceeds (or allocating responsibility if the tract is partitioned in kind).
  • Credit for one co-owner’s payments for taxes, mortgage, or improvements that benefited the whole property.
  • Credit/debit for intolerable waste or destruction caused by a co-owner.
  • Deduction of costs of partition (appraisers, surveyors, commissioners’ fees, attorney fees if permitted by statute and the court’s discretion).

Practical steps in a North Dakota partition action

  1. File a partition complaint in the appropriate district court. The party requests partition in kind or sale and asks the court to appoint commissioners or an appraiser.
  2. Court serves all interested parties and may set a hearing. The court may appoint commissioners to view and appraise the property and report back.
  3. Parties can present valuations, propose divisions, or offer to buy out other owners’ interests.
  4. The court issues an order for partition in kind, for a sale, or for buyouts and cash equalizations. The order will allocate costs and direct conveyances or payments.
  5. If sale is ordered, the court directs sale procedures and later distributes net proceeds by the owners’ shares after charges and credits.

These procedures are governed by North Dakota’s partition statutes; see NDCC Chapter 32-19: https://www.legis.nd.gov/cencode/t32c19.html.

When should you try to settle rather than litigate?

Because disputes about fairness and valuation are common and litigation costs reduce net proceeds, parties often do better by negotiating: agree on an appraiser, split the land with a written buyout amount, or agree to sell and split proceeds. Mediation often helps. If parties cannot agree, a court will decide based on appraisals and equitable principles.

Helpful hints

  • Get a professional appraisal early. Accurate per-acre values make fair divisions and equalization calculations possible.
  • Document payments you made for taxes, mortgages, or improvements. The court may give you credit for those expenditures.
  • Consider a buyout if one owner wants the better portion; buying out can avoid sale costs and tax events tied to selling the whole property.
  • Ask the court to appoint neutral commissioners if you suspect one party will give a biased value estimate; ND courts frequently use neutral appraisers or commissioners.
  • Factor in non-acre qualities: access, utilities, buildings, and mineral rights affect value more than pure acreage.
  • Remember costs: survey, appraisal, legal, and sale costs reduce proceeds. Try to estimate these before deciding whether to litigate.
  • If possible, try mediation or a negotiated settlement before filing a partition action — courts encourage efficient, consensual resolution.

Where to look in North Dakota law

Relevant statutory rules are in the North Dakota Century Code on partition of real property: NDCC Chapter 32-19. The chapter sets out procedural steps, the court’s authority to appoint commissioners or order sale, and distribution mechanics: NDCC Ch. 32-19 (Partition). For issues about liens, mortgages, and priority, consult related chapters of the NDCC and look at court rules for procedure in district court.

Bottom line

North Dakota courts try to ensure each co-owner receives an equal monetary share. When acres differ in quality or value, the court will either divide acreage with cash equalization or order a sale and split proceeds. Appraisals, credits for payments and improvements, and settlement options matter. Early appraisal and negotiation often produce the best outcomes for owners. For specific actions and court forms, review NDCC Chapter 32-19 and consider consulting a licensed North Dakota attorney for representation or targeted legal advice.

Disclaimer

This article explains general North Dakota legal principles about partition of real property. It is educational only and not legal advice. For advice about your specific situation, consult a licensed attorney in North Dakota.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.