Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance tailored to your situation.
Detailed Answer
1. Understand Carrying Costs in Co-Ownership
“Carrying costs” are the ongoing expenses one owner pays to hold property. Common items include:
- Mortgage interest
- Property taxes
- Insurance premiums
- Utilities and maintenance
- HOA or condo fees
In West Virginia, when two or more parties own property together, each co-owner must contribute their fair share of these expenses. If one owner advances more than their share, equity law and the partition statutes allow them to recover the excess.
2. Statutory Basis for Recovery
Under West Virginia Code §55-5-4 (Maintenance and Insurance), a co-owner who pays taxes, insurance, or necessary upkeep may be reimbursed through the partition process or upon sale. When property is sold under a joint sale agreement or partition action, courts use equitable accounting to adjust each party’s share of proceeds.
3. Calculating Your Share
- Identify period: Determine the span during which you paid carrying costs (e.g., January–June).
- List expenses: Compile invoices and statements for mortgage interest, taxes, insurance, etc.
- Compute total: Sum each expense category for the entire period.
- Allocate by ownership share: Multiply the total costs by your co-owner’s ownership percentage. For example, if you own 60% and paid 100%, the co-owner’s share is 40% of the total.
- Subtract co-owner payments: If the co-owner paid any portion directly, deduct that from their calculated share.
4. Recovering the Costs
You have two primary methods to recover those funds:
- Informal Demand: Send a written demand outlining the carrying costs, calculation method, and payment deadline.
- Partition Action: File under West Virginia Code §55-5-1 et seq. (Partition of Real Property). The court orders sale or division of property and directs an accounting of advances. Your expenses are deducted from the co-owner’s share of sale proceeds.
Helpful Hints
- Keep detailed records: Save receipts, mortgage statements, tax bills, and insurance invoices.
- Communicate early: Discuss carrying costs with your co-owner before expenses accrue.
- Use a ledger: Track dates, amounts, and payees to simplify calculations.
- Consider mediation: A neutral mediator can help reach an agreement without court.
- Consult an attorney: For partition filings or complex accounting, legal advice ensures compliance with West Virginia law.