Detailed Answer
Short answer: In Vermont a co-owner who does not want to receive a physical share of real property can usually obtain monetary compensation by either negotiating a buyout with the other owners or by filing a judicial partition action asking the court to order a sale and distribute the net proceeds. Courts prefer partition in kind only when it is practical; when in-kind division is impracticable or inequitable, the court will order a sale and divide the money. Whether you get cash, how much you get, and how quickly you receive it depends on ownership shares, liens, contributions, and any equitable adjustments the court finds appropriate.
How a monetary buyout works (private settlement)
Most co-ownership disputes end by agreement. Typical steps:
- Obtain a professional appraisal to establish fair market value.
- Agree how to treat existing mortgage(s), taxes, and liens (pay off or assume).
- Calculate each owner’s share of the net value (market value minus debts and sale costs), then negotiate a buyout amount for the owner who wants cash.
- Document the transfer with a deed, payoff statements, and a written buyout agreement.
Private settlement is faster, cheaper, and gives parties more control than a court-ordered process.
When you can ask the court for cash: Vermont partition actions
If co-owners cannot agree, a co-owner can file a partition action in Vermont Superior Court (Civil Division). In that action you ask the court either to divide the property (partition in kind) or to sell it and divide the proceeds (partition by sale). Vermont courts will order sale when division in kind is impracticable or would cause great prejudice to owners. A sale produces cash for distribution to the co-owners.
For official Vermont court procedure and forms see the Vermont Judiciary website: https://www.vermontjudiciary.org/. For statutes and legislative material, see the Vermont Statutes Online: https://legislature.vermont.gov/statutes.
How the court calculates who gets what
The court generally distributes net sale proceeds according to the legal ownership shares shown in title documents (deed, contract, or agreement), adjusted for:
- Mortgage and lien payoffs and sale costs (real estate commission, closing costs, court costs).
- Contributions to the property (payments for repairs or improvements that benefitted the property may justify credits).
- Unequal contributions to expenses (mortgage payments, taxes, insurance) can lead to debits/credits.
- Equitable factors where one co-owner’s conduct justifies an adjustment (waste, misconduct, or exclusion of another co-owner).
The court may appoint a referee, commissioner, or special master to manage valuation, sale, and accounting.
Typical outcomes and timeline
- Private buyout: weeks to a few months (depends on negotiation and financing).
- Judicial partition leading to sale: usually several months to over a year (time to litigate, obtain order, market the property, and close a sale).
- Cost considerations: court fees, appraisals, marketing, and attorney fees will reduce net proceeds; in some cases the court may award attorney fees to a prevailing party if the law or contract allows.
Steps to obtain monetary compensation without receiving physical property
- Confirm ownership shares by checking the deed or any written agreements.
- Get a current appraisal and gather mortgage, tax, and lien statements.
- Try to negotiate a buyout: propose a written buyout offer based on appraised value less liens/costs.
- If negotiation fails, consult an attorney about filing a partition action in Superior Court asking for sale and division of proceeds.
- In court, present evidence of value, contributions, liens, and expenses so the judge can order an equitable division.
- After sale, receive your share of net proceeds per the court’s order or the settlement agreement.
Tax and financial considerations
Receiving cash in a buyout or partition sale can have tax consequences (capital gain or loss, basis adjustments). Consult a tax advisor or the Vermont Department of Taxes for state tax questions: https://tax.vermont.gov/.
When to get an attorney
Consider hiring an attorney if:
- Owners cannot agree on value or buyout terms.
- There are complex liens, financing, or title defects.
- One co-owner has been excluded from possession or there are claims of waste.
- You want to file a partition action or defend against one.
Applicable Vermont resources
- Vermont Judiciary (court procedures, forms, and local rules): https://www.vermontjudiciary.org/
- Vermont Statutes Online (statutory law and search): https://legislature.vermont.gov/statutes
- Vermont Department of Taxes (state tax guidance): https://tax.vermont.gov/
Helpful Hints
- Start with an appraisal. A neutral, recent valuation strengthens negotiations and court pleadings.
- Document contributions. Keep receipts for repairs, taxes, insurance and mortgage payments to support credits or debits.
- Try mediation first. Courts often expect parties to attempt settlement and mediation is cheaper and faster than litigation.
- Beware liens and unpaid taxes. These reduce net sale proceeds and affect what you receive.
- Consider timing and market conditions. A forced sale during a down market will reduce your payment.
- Plan for taxes. Ask a tax advisor about basis and capital gains before completing a buyout or sale.
- Get written agreements. Any buyout or settlement should be in writing, with a deed or transfer document recorded to clear title.
Disclaimer: This article explains general Vermont legal concepts and common procedures for co-owners seeking money instead of property. It is educational only and is not legal advice. For advice about your specific situation, consult a licensed Vermont attorney.