Short answer: It depends. Whether you can deduct mortgage payments, property taxes, insurance, utilities, and other carrying costs from your share of sale proceeds in Washington depends on how the property is owned, any written agreements between owners, and whether a court or buyer must account for those payments (for example in a partition action or a divorce property division). Documentation and timing of payments matter.

How Washington law approaches this issue

Two common legal contexts arise under Washington law:

• Co-owners who are not divorcing (tenants in common or joint tenants): Co-owners generally share rights to the property according to title. If co-owners disagree about sale proceeds, a partition action or an accounting can require the court to divide proceeds after adjusting for contributions. Courts can order reimbursement for reasonable expenses paid by one co-owner that preserved the property or were necessary to sell it. See Washington partition law: RCW chapter 7.60.
• Divorcing spouses (property division): In a dissolution, the court divides community and separate property equitably. The court may reimburse one spouse for separate-property contributions used to pay mortgages, taxes, or carrying costs, or otherwise adjust the distribution to reach a just result. See the dissolution/property-distribution chapter: RCW chapter 26.09.

What kinds of carrying costs can sometimes be credited?

Items that a court or co-owner might allow as a credit (when supported by evidence) include:

• Mortgage principal and interest payments
• Property taxes
• Insurance premiums (hazard, flood, title insurance tied to the property)
• HOA or condominium fees related to the property
• Repair and maintenance costs required to preserve the property or make it marketable
• Utility charges paid while the property was on the market

What matters when a court or co-owner evaluates a claim for credit?

Courts and negotiating parties commonly look at:

• Ownership category: Was the property community property, separate property, or jointly owned as tenants in common or joint tenants? The answer changes who is entitled to what.
• Written agreements: Any co-ownership agreements, buy-sell agreements, or stipulations in a divorce settlement often control.
• Documentation: Mortgage statements, tax bills, cancelled checks, bank records, escrow statements, and receipts that show who paid what and when.
• Purpose of the payments: Payments that preserved the property or were required to prevent loss are more likely to be credited than discretionary payments.
• Benefit to other owners: If other owners directly benefited (e.g., payments kept the property from foreclosure), courts are likelier to order reimbursement.
• Timing and tracing: Payments made before formal co-ownership or after an agreement to sell may be treated differently than ongoing, agreed-upon payments.

Common scenarios and typical outcomes

Scenario A — Two friends buy a house as tenants in common, one pays all mortgage and taxes while the other pays little

If they sell, the paying co-owner can ask for an accounting and may receive reimbursement for necessary carrying costs before splitting the remaining proceeds according to ownership shares. If they cannot agree, a partition action can resolve the dispute. See RCW chapter 7.60.

Scenario B — Married couple divorcing

The court divides property under RCW chapter 26.09. The court can credit one spouse for separate-property funds used to pay carrying costs or otherwise adjust distributions to achieve an equitable result. The outcome depends on proof and the overall property picture.

Scenario C — One owner pays mortgage after sale contract signed but before closing

Often the buyer or sellers account for prorated amounts at closing. If one co-owner advanced funds to preserve value between contract and closing, courts commonly award reimbursement if the payments were reasonable and documented.

How to document and preserve a claim for reimbursement

1. Keep original mortgage statements, escrow statements, canceled checks, bank transfers, and receipts.
2. Save property tax bills, insurance invoices, HOA statements, and repair invoices.
3. Create a ledger that shows date, payee, amount, and purpose for each carrying-cost payment.
4. If possible, get written agreements about who pays what when co-owners split costs.
5. If negotiating a buyout or sale, state the requested credits in writing and attach documentation.

Practical steps if you and the other owner disagree

• Request an accounting in writing and present your records.
• Propose mediation or arbitration if the other party resists accounting.
• If necessary, consult a Washington real estate or family law attorney about a partition action or motion in a dissolution case.
• Preserve all paperwork and communications about payments and the sale process.

Where to find the relevant Washington statutes

Partition actions (co-owner disputes) — see RCW chapter 7.60: https://apps.leg.wa.gov/rcw/default.aspx?cite=7.60

Dissolution and property distribution — see RCW chapter 26.09: https://apps.leg.wa.gov/rcw/default.aspx?cite=26.09

When to talk to an attorney

Contact a Washington real estate or family law attorney if:

• More than a few thousand dollars are at stake and the other party disputes your claim
• There is a risk of foreclosure or other urgent loss
• Co-owners cannot agree and a partition action or divorce judgment is likely
• You need help organizing proof or drafting settlement language that protects your reimbursement rights

Disclaimer: This article explains general principles of Washington law and is for educational purposes only. It does not provide legal advice, create an attorney-client relationship, or substitute for consulting a licensed attorney about the facts of your case.

Helpful Hints

• Gather receipts now. The best evidence of payments is original bank and escrow records.
• If you and the other owner plan to keep the property, sign a written cost-sharing agreement to avoid disputes later.
• Ask your closing agent for a full closing statement that shows prorations and credits at sale.
• Keep mortgage payoff statements—they show principal remaining and how payments were applied.
• Document conversations about payments in writing (email is fine) so terms aren’t disputed later.
• Consider mediation before filing court actions — it is faster and often cheaper.