Detailed Answer — How to receive your share of net proceeds after a partition sale in West Virginia
If a co-owned house is sold through a court-ordered partition in West Virginia, the court supervises the sale and directs how the sale proceeds are allocated. To get your share you must follow the court’s distribution process, ensure liens and costs are paid, confirm your ownership share, and, if necessary, ask the court to enforce the order. The steps and considerations below explain how that process typically works in West Virginia and what you can do if you disagree with the distribution.
1. Who controls the money and how is it calculated?
After the sale, the county clerk, the sheriff (if the sheriff conducted the sale), or the court-appointed commissioner/receiver usually holds the sale funds in the court registry or an escrow account. From the gross sale price the court or officer will first pay:
- recorded liens and mortgages that are senior to co-owner claims;
- taxes and special assessments tied to the property;
- court-ordered costs of sale, including commissions, filing fees, and advertising;
- amounts due for upkeep, repairs, or taxes paid by one co-owner that the court orders reimbursed.
After those items are paid, the remaining amount is the net distributable proceeds. The court will then divide that net amount among the co-owners according to the court’s determination of their respective interests (for example, 50/50, 60/40). A partition action in West Virginia is governed by the statutes on partition (see W. Va. Code Title 37, Chapter 6) and the court’s order controlling the sale and distribution. For statutory language and procedures, see the West Virginia Code on property and partition: W. Va. Code Title 37, Chapter 6.
2. Practical steps to get your share
- Obtain a copy of the court order directing the sale and distribution. That order will state who holds proceeds and how distribution will occur.
- Confirm the accounting. Ask the clerk or the court-appointed officer for an itemized accounting showing gross sale price, liens paid, costs, and the net distributable amount.
- Confirm your ownership percentage. The court divides net proceeds according to the ownership interests shown in the title or as determined by the court. If you and the co-owners had unequal contributions or there are claims for improvements or offsets, the court may adjust shares—those adjustments should appear in the order.
- If the court has already entered distribution instructions and funds are available, request issuance of a check or transfer to your bank. Court clerks or the officer usually prepare disbursement checks payable to each party or their attorneys per the order.
- If funds are in the court registry and the clerk needs a formal motion for distribution, file a motion for distribution (or ask your attorney to do so) referencing the sale, the accounting, and the proposed payees and amounts.
- If your share is being withheld because of a lien, judgment, or a dispute, ask the court to resolve the dispute or to order direct payment into the court registry until the dispute is settled.
3. Common issues and how courts resolve them
- Liens and mortgages: These are normally paid out of sale proceeds before distribution to owners.
- Credits for improvements, rents, or payments: The court may allow credits if one co-owner paid mortgage, taxes, or made improvements prior to sale. Those credits must be proved to the court.
- Disputes over shares: If a co-owner objects to the proposed distribution, they can file objections and request a hearing. The court will then resolve factual disputes and enter a revised distribution order.
- Delays: Distribution can take weeks or months if there are title issues, unpaid liens, pending appeals, or tax questions.
4. Hypothetical example
Suppose two co-owners hold the house as tenants in common: Owner A 60% and Owner B 40%. The home sells for $250,000. There is a mortgage balance of $50,000, unpaid property taxes of $5,000, and sale costs (commissions, fees) of $10,000. The court orders payment of liens and costs from sale proceeds.
- Gross sale price: $250,000
- Less mortgage paid at closing: $50,000
- Less taxes and sale costs: $5,000 + $10,000 = $15,000
- Net distributable proceeds: $185,000
- Owner A (60%): $111,000; Owner B (40%): $74,000
If Owner B had paid $4,000 for repairs the court believes were necessary and attributable to Owner B, the court might order an adjustment, reducing Owner A’s share or reimbursing Owner B before distribution. Any such adjustment should appear in the court’s written distribution order.
5. If you can’t get your money
- Confirm the order and accounting in writing from the clerk or receiver.
- If the clerk refuses to disburse funds contrary to the court’s order, file a motion to compel distribution or ask the court to enforce its order.
- If another party is withholding your check because of a claimed offset, request a hearing on the offset and ask the court to resolve competing claims against the proceeds.
- If there is an appeal of the partition judgment, distribution may be stayed; you may need to request release of funds to the court registry or post a bond to obtain immediate distribution—follow the court’s directions.
6. Tax and practical considerations
- Sale proceeds may trigger capital gains tax or require reporting; the sale may generate Form 1099-S. Consult a tax advisor before spending proceeds.
- Keep records: certified copy of the distribution order, the accounting, receipts for amounts paid by you, and proof of ownership percentage.
- Expect delays if title problems, unpaid judgments, or unrecorded liens surface during the final accounting.
Helpful Hints
- Get the court order in writing. The distribution must follow the court’s written order.
- Ask the clerk or receiver for a detailed accounting in writing before accepting any check.
- Gather proof of any payments you made (mortgage, taxes, repairs) to present as credits to the court if needed.
- If there are liens or mortgage payoffs, expect the net distributable amount to be reduced accordingly.
- If you disagree with the distribution, file a timely objection and ask for a hearing—don’t ignore deadlines.
- Keep tax advice in mind: set aside potential tax obligations and get a 1099-S if applicable.
- Consider hiring a local West Virginia real estate or civil litigation attorney if the accounting or distribution is contested.
Where to look in the law: West Virginia’s statutes on partition are found in Title 37, Chapter 6 of the West Virginia Code. See: W. Va. Code Title 37, Chapter 6.
Next steps: Obtain a copy of the final sale and distribution order from the circuit court that handled the partition. If you need help interpreting the order, or if funds are being withheld, consult an attorney who handles partition or real estate litigation in West Virginia or contact the county clerk for information about the disbursement process.
Disclaimer: I am not a lawyer. This information is educational and general. It is not legal advice. For advice about your specific situation, consult a licensed attorney in West Virginia.