Detailed Answer

When a co-owned house is sold through a court-ordered partition in Wisconsin, the court controls the sale, pays the sale costs and liens, and orders distribution of the remaining money (the net proceeds). The basic process and the steps you should take to get your share are below.

1. How the court calculates net proceeds

• The gross sale price is reduced by the costs of sale (real estate commissions, closing costs), the court’s partition costs (attorney fees and commissioner or referee fees, if ordered), and any taxes or assessments due.
• Recorded liens and mortgages on the property are paid from the proceeds according to priority (senior liens first). The remaining balance is the net proceeds available for distribution to the co-owners.
• If the court finds equitable offsets are appropriate (for contributions to mortgage payments, taxes, improvements, or waste), it can adjust each owner’s share before distribution.

2. Legal basis in Wisconsin

Partition actions in Wisconsin are governed by the Wisconsin statutes on partition (chapter 843). See the statutes for the court’s powers, sale procedures, and distribution rules: Wis. Stat. ch. 843 — Partition. The circuit court issues the sale order and the final distribution judgment.

3. Court steps that lead to distribution

1. The court orders sale of the property (often appointing a referee or commissioner to sell).
2. After sale and closing, the sale funds are typically deposited with the court or the court’s clerk pending approval and accounting.
3. The court reviews payoffs for mortgages, liens, and sale-related costs and issues a final order identifying net proceeds and directing disbursement to each party.

4. What you should do to get your share

1. Obtain a copy of the court’s final distribution order or judgment. That order is your primary entitlement document and typically controls payment.
2. Confirm the clerk or escrow agent has the funds and ask what the clerk needs to release your portion (e.g., written instructions, identification, a completed W-9 for tax reporting, or a signed receipt).
3. Provide any requested information promptly (payee name, mailing or wire instructions, taxpayer identification required for 1099 reporting).
4. If you believe the calculation is wrong (liens unpaid, incorrect credits, or unequal apportionment), file a motion in the same partition case asking the court to amend the distribution or to hold a hearing on accounting and credits.
5. If the court already ordered payment and a co-owner or third party refuses to turn over the funds, you can ask the court to enforce the order (contempt or execution remedies) or seek an order directing the clerk to disburse funds from the court registry.

5. Common disputes and how the court handles them

Typical disagreements include:

• Priority or amount of recorded liens. Priority is determined by recording dates and statute, not simply by agreement among owners.
• Requests for credits (for mortgage payments, improvements, or necessary repairs). The court evaluates evidence and can adjust shares equitably.
• Claims by judgment creditors or tax authorities against the proceeds. These may have priority or statutory attachment rights and will reduce available net proceeds.

6. Timeline and practical expectations

Expect several weeks to months between sale and final distribution. The timeline depends on whether the sale requires court confirmation, the time needed to pay off liens, and whether disputes or appeals arise. Ask the clerk for an estimate of processing time.

7. Example (hypothetical) calculation

Suppose the house sells for $300,000. Deductions before distribution include a mortgage payoff of $100,000, sale and closing costs of $9,000, partition legal and commissioner fees of $6,000, and a tax lien of $5,000. Net proceeds = $300,000 − ($100,000 + $9,000 + $6,000 + $5,000) = $180,000. If two co-owners held equal shares, each would receive $90,000 unless the court orders adjustments for unequal contributions.

8. Tax and practical considerations

• The court’s disbursement may trigger tax reporting (the court or closing agent may issue a Form 1099). Consult a tax advisor about capital gains and basis adjustments.
• Keep receipts and records for any payments you made (mortgage, taxes, improvements) to support claims for credits in the partition proceeding.

Helpful Hints

• Get the court order: Always secure a certified copy of the final distribution order. It authorizes payment and shows how the court computed your share.
• Document contributions: Keep records of mortgage, tax, insurance, and repair payments to prove any credit claims in court.
• Check recorded liens early: Pull a title search before sale to see all mortgages and judgments that will be paid from proceeds.
• Communicate with the clerk: Ask the county clerk or court administrator what is required to release funds (ID, W-9, wiring instructions).
• Watch deadlines: If you need to object to distribution, do so quickly—motions and appeals have strict timing rules in circuit court practice.
• Consider mediation: If co-owners dispute credits or division, mediation can resolve issues faster and cheaper than litigation.
• Plan for taxes: Talk to an accountant about how the sale affects your tax return and whether the partition sale changes basis or reporting.
• Hire counsel if needed: If significant money or complex liens are involved, an attorney can protect your rights and file enforcement motions if needed.