How can I get my share of the net proceeds after the partition sale of a co-owned house? (TN) | Tennessee Partition Actions

Detailed Answer — How proceeds are calculated and how you get your money under Tennessee law

If a co-owned Tennessee property is sold by court-ordered partition, the court supervises the sale and the distribution of the sale proceeds. The basic flow is: the sale pays liens, mortgages, taxes, and court-ordered costs and fees first; any remaining net proceeds are distributed to the owners according to their legal interests, subject to any equitable adjustments the court orders. Tennessee’s partition statutes set out the court’s power to order partition and sale and to direct how the sale proceeds are handled (see Tennessee Code Annotated, Title 29, Chapter 27: partition of real property). For statutory text and procedures, see the Tennessee Code: https://wapp.capitol.tn.gov/apps/tncode/sections/29-27-101.html

Key legal points you need to know:

Who gets paid first — The sale proceeds must satisfy valid liens and mortgages that attach to the property. The order of payment follows lien priority (mortgages, tax liens, mechanic’s liens, etc.), plus the costs of the partition action and the costs of sale (court costs, advertising, auction costs, any commission or fees). After these are paid, the remainder (net proceeds) is what co-owners split.
How ownership share is determined — Unless the court finds a reason to adjust for equities, co-owners receive proceeds according to their legal ownership shares (for example, equal tenants in common each get an equal share). If title reflects unequal interests, distribution follows those recorded interests.
Equitable adjustments — The court can account for unequal contributions to mortgage payments, taxes, repairs, or improvements and may adjust distribution to reflect equities. You should preserve records if you expect a credit or reimbursement for payments you made on behalf of the property.
Clerk or commissioner handling funds — The court typically appoints a commissioner or orders the clerk to handle the sale and disbursement. The funds are disbursed only after a final accounting and order from the court. If the clerk or commissioner is holding proceeds, you obtain your share by following the court’s distribution order.

Step-by-step: How to get your share after a partition sale

Confirm the court’s final decree. The court issues a decree of sale and later a final decree approving the sale and directing disbursement. Obtain a copy from the court clerk so you know the amounts and the payment order the court approved.
Review the accounting. The sale proceeds should be itemized in a report or accounting showing gross sale price, liens and mortgage payoffs, tax or assessment payoffs, sale costs, and the net amount. If you do not get an accounting, request it from the clerk or the commissioner appointed by the court.
Verify lien payoff and expense payments. Confirm that mortgages and liens were actually paid from the proceeds. If a lien remains unpaid, the lienholder may have a claim against the proceeds or may pursue you if title wasn’t cleared; ask the court for clarification.
Get the court order directing disbursement. The court will enter an order directing distribution of the net proceeds to owners in the amounts established. The clerk or commissioner pays out according to that order.
If you are owed money and the clerk has the funds, request payment in writing and provide identification. If payment is withheld in error, file a motion with the court to compel distribution according to the decree.
If you disagree with the allocation, file objections promptly. Tennessee law gives parties an opportunity to object to the commissioner’s report or the proposed distribution. Timely objections preserve your right to seek adjustment.

Common problems and how to handle them

Funds already paid improperly — If the clerk or another party paid out funds to the wrong person or in wrong proportions, you can file a motion in the same partition case asking the court to correct the distribution and order restitution.
Claims by lienholders after sale — If a creditor asserts a lien post-sale, ask the court to resolve priority or to re-open the accounting. The court’s distribution order should show who is responsible for liens and whether net proceeds cover them.
Disputes over ownership share or credits — If you claim you paid more than your share (mortgage, taxes, repairs), present documentation and request the court to allow equitable credits. Keep receipts and bank records to support your claim.

Hypothetical example (simple)

Three co-owners hold title as tenants in common: A (50%), B (25%), C (25%). The property sells for $200,000. The mortgage payoff is $50,000 and sale costs plus taxes and fees total $10,000. Net proceeds = $140,000. Distribution would typically be A: $70,000; B: $35,000; C: $35,000 — unless B or C successfully claims credit for mortgage payments or improvements that would alter those amounts.

If a co-owner had made extra mortgage or tax payments, they should bring records to court and ask for a credit during the final accounting. The court has authority to adjust distributions for such equities.

Where to go if you can’t get your share

Contact the clerk of the court that handled the partition and request the final decree and accounting. Clerks often can tell you the status of disbursements.
File a motion in the partition case to compel distribution or to correct an incorrect distribution. The court that ordered the sale has continuing jurisdiction to supervise the distribution.
If someone refuses to comply with a court order, you can ask the court for enforcement remedies, which may include contempt proceedings or an order for restitution.

For the statutory framework on partition powers and sale in Tennessee, see Tennessee Code Annotated, Title 29, Chapter 27: https://wapp.capitol.tn.gov/apps/tncode/sections/29-27-101.html

Practical checklist — Documents and info to have ready

Copy of the court’s order of sale and final decree approving the sale.
Commissioner’s report or clerk’s accounting showing gross sale price, lien payoffs, taxes, sale costs, and net proceeds.
Title documents showing your ownership share (deed, title abstract).
Proof of payments you made that you want credited (mortgage payments, taxes, insurance, receipts for repairs or improvements).
Contact info for the clerk of court, the appointed commissioner (if any), and the attorney who represented the partition sale.

When to get a lawyer

Consider hiring a Tennessee real property attorney if: distributions are disputed; liens remain unpaid; another co-owner claims credit you don’t agree with; the clerk has misapplied funds; or you need to pursue enforcement of a court order. An attorney can file motions, present your accounting and evidence, and negotiate a resolution under Tennessee law.

Disclaimer: This article explains general Tennessee law about partition sales and distribution of proceeds. It is for educational purposes only and does not constitute legal advice. For advice about your specific situation, consult a licensed Tennessee attorney.