Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
Detailed Answer
When co-owners in Wisconsin cannot agree on a buyout price for jointly owned real estate, they have several options to resolve the dispute:
1. Voluntary Negotiation and Appraisal
Co-owners can hire a neutral real estate appraiser to determine fair market value. Each party then uses that appraised value as a basis for offers and counteroffers. A written buy-sell agreement or formal mediation can document the terms of a buyout.
2. Mediation or Alternative Dispute Resolution
Private mediation or arbitration lets co-owners work with a neutral third party to reach a settlement. Mediation is often faster and less expensive than litigation and allows for creative solutions tailored to both parties’ needs.
3. Court-Ordered Partition Action
If negotiation fails, a co-owner may file a partition action in the circuit court under Wis. Stat. § 842.01. A partition action forces division or sale of the property and distribution of proceeds among co-owners.
Partition in Kind vs. Partition by Sale
- Partition in Kind: The court physically divides the land so each co-owner receives a portion. This is only possible if the property can be fairly and practically subdivided.
- Partition by Sale: If in-kind division is impractical, the court orders a public sale. Proceeds are divided based on each party’s ownership interest.
Filing a Partition Action
To initiate a partition action under Wis. Stat. § 842.01, a co-owner must:
- File a complaint for partition in the county where the property is located.
- Name all co-owners as defendants.
- Pay the required filing fees or seek a waiver.
The court may appoint a commissioner to oversee the division or sale (Wis. Stat. § 842.03).
Helpful Hints
- Obtain a professional appraisal early to frame negotiations.
- Consider mediation before filing suit to save time and costs.
- Review any existing co-ownership or operating agreement for buyout clauses.
- Understand that court costs and attorney fees in a partition action can reduce net proceeds.
- Consult a real estate attorney familiar with Wisconsin partition law for tailored guidance.