How can I get my share of the net proceeds after the partition sale of a co-owned house? (WA)

Detailed Answer

This FAQ explains in straightforward terms how to obtain your share of the net proceeds after a court-ordered partition sale of a co-owned house in Washington. It uses a short hypothetical to illustrate typical steps, explains the legal framework, and lists practical actions you can take. This is educational information only—not legal advice.

Quick legal background (Washington)

Partition actions and partition sales in Washington are governed by the state’s partition statutes (RCW chapter 7.28). The court supervises the sale and the distribution of proceeds. After the sale, the court (through the clerk) pays allowable costs and liens first, and then distributes the remaining (net) proceeds to the parties in accordance with the court’s order and the parties’ ownership interests or the court’s apportionment. See RCW chapter 7.28 for the statutory framework: https://app.leg.wa.gov/rcw/default.aspx?cite=7.28.

Hypothetical fact pattern

Imagine a house owned as tenants in common by Alice (60%) and Ben (40%). The court orders a partition sale. The property sells at auction for $400,000. After sale costs and lien payments, $300,000 remains as net proceeds. How do Alice and Ben get their shares?

Step-by-step: How to get your share of the net proceeds

1. Get the court’s final order and the clerk’s accounting. After the sale, the judge signs a final order approving the sale and directing distribution of proceeds. The clerk’s office typically prepares a final accounting that shows gross sale price, costs (advertising, auctioneer or broker fees, trustee or receiver costs), mortgage and lien payoffs, and the net balance. Request certified copies from the clerk if needed.
2. Confirm who is entitled to what. The court order will allocate the net proceeds. If ownership shares are stated in the deed or the court found percentage interests, distribution normally follows those percentages unless the court orders adjustments for contributions, improvements, or reimbursements. If the order is unclear, ask the clerk or your attorney for a clarification or an amended order.
3. Check and resolve liens and priority claims. Before distribution, the clerk will pay recorded liens (mortgages, tax liens, mechanic’s liens) according to priority. If a lien remains unresolved or a creditor claims a portion, the clerk may hold funds until the claim is resolved. You must provide any paperwork that proves your entitlement or offsets.
4. Provide required paperwork to the clerk. Courts or clerks often require identifying information (copy of your ID), IRS form W-9 (to issue 1099s), and written instructions on where to send the check or wire information. Submit these promptly to avoid delay.
5. Receive distribution from the clerk. Once liens and costs are paid, the clerk issues payments according to the court’s order. If you are entitled to a portion, the clerk will issue a check or electronic payment in your name. Keep copies of the clerk’s accounting and your received payment for tax records.
6. If the clerk is holding funds because of a dispute, file a motion with the court. If a co-owner or creditor contests the distribution, or the clerk will not release funds, you (or your attorney) can file a motion for distribution, turnover, or for the court to resolve competing claims. The court can order funds released or direct how to divide them after resolving disputes.
7. If a co-owner refuses to comply after the court orders distribution. If a co-owner refuses to accept their check or otherwise frustrates distribution, you can ask the court to enforce its order. Enforcement tools include contempt proceedings or an order directing the clerk to disburse funds to escrow, an attorney trust account, or directly to the entitled parties.
8. Get a detailed accounting or ask for an auditor. If you suspect miscalculation of costs, liens, or shares, request a detailed accounting from the clerk. The court can order further accounting or appoint a receiver to review complex claims.
9. Consider tax and reporting implications. A partition sale can have tax consequences (capital gains, reporting). The clerk or sale administrator and brokers may issue IRS forms (e.g., 1099-S). Consult a tax advisor to understand withholding, gains calculation, and any reporting requirements.
10. Hire an attorney if needed. If the distribution is contested, liens remain unpaid, or the court process is unclear, a Washington attorney experienced in real property litigation can file motions, obtain clarifying orders, and help obtain your share.

When the court may adjust shares

The court may deviate from simple deed percentages when a co-owner paid more than their share of mortgages, taxes, necessary repairs, or made improvements. The court can award credits or order reimbursements before dividing the net proceeds. That equitable adjustment is part of what makes the clerk’s accounting and any supporting receipts important.

What to do if you are not getting paid

• Confirm the court’s distribution order and the clerk’s accounting.
• Make a written request to the clerk for immediate disbursement with proof of identity and delivery instructions.
• If funds are being withheld due to dispute, file a motion for distribution or a motion to resolve competing claims.
• If a co-owner is violating a court order, seek enforcement (contempt, turnover orders) through the court.
• Keep copies of all filings, receipts, and communications.

Helpful Hints

• Gather the deed, the final court order, clerk’s accounting, and any receipts for payments you made (mortgage, taxes, repairs).
• Provide the clerk a current mailing address, photo ID, and a W-9 early so the clerk can issue your payment without delay.
• Check the recorded deed to confirm your legal percentage interest before relying on assumptions.
• Expect the clerk to pay prior-recorded liens first; unsecured claims after that may not get paid from sale proceeds.
• If the sale used a broker or auctioneer, ask for the HUD-1 or closing statement that shows itemized fees and payoffs.
• Keep deadlines in mind: if you need to file objections to the accounting or distribution, do so promptly under the court’s schedule.
• If the other co-owner’s conduct is causing delay, a local attorney can file enforcement motions and speed distribution.
• Consider mediation to resolve disputes about reimbursements or unequal contributions before litigating further.

Relevant Washington statute: Partition of real property—see RCW chapter 7.28: https://app.leg.wa.gov/rcw/default.aspx?cite=7.28.

Next steps: Start by obtaining the court’s final order and the clerk’s final accounting. If payments are delayed or contested, request the clerk’s instructions for disbursement and consider consulting a Washington real property attorney for enforcement or complex accounting disputes.

Disclaimer: This information explains general principles under Washington law and is for educational purposes only. It does not create an attorney-client relationship and is not legal advice. For advice about your specific situation, consult a licensed Washington attorney.