How Much Does a Partition Action Cost and Who Pays?

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Co-owning property can quickly turn into a financial and legal burden when one owner wants out, and the others refuse to cooperate. When co-owners reach a standstill, a partition action can force progress. However, it also introduces real financial consequences. Knowing what the law requires and how courts divide responsibility for those costs can help you protect your interests and avoid unnecessary expenses.

What Is a Partition Action?

A partition action is a legal action that allows property owners to divide a piece of real estate when owners cannot agree on its ownership or use. Partition actions are governed by N.D.C.C. Title 32, Chapter 32-16.

There are two types of partition: in kind or by sale. An “in kind” partition is the physical division of the owned property. When a physical partition is not possible or practical, the court will order partition by sale. The real estate is sold, and the proceeds are divided among the owners.

Generally, courts prefer to physically divide property. This approach allows the owners to keep at least a portion of the land. However, this approach isn’t always fair. The court will use the “great prejudice” standard to determine if selling the property is more appropriate.

If physically dividing the property would greatly harm the value of the property or unfairly disadvantage one of the owners, the court will favor sale or division.

Typical Costs Involved in a Partition Action

North Dakota’s partition statutes do not list specific dollar amounts for filing or litigation costs. Instead, costs depend on the nature of the property, the number of owners, and the complexity of the dispute.

Court Filing Fees

The filing fees are typically insignificant and at the conclusion of the case the district court may order co-owners to cover portions of the filing fees, even if they were not the owner to commence the partition action.

Professional Fees

During a partition action, several professionals may be employed to assist. The court may assign referees, a surveyor, or an appraiser, who will charge a fee for their services. The court will decide what fees are reasonable and allowed. These costs are considered a part of the action’s costs.

If any party spends money on these costs, but the expense benefits all co-owners, it counts toward the total costs that must typically be shared. The share each owner pays is generally based on how much of the property they own.

Attorney Fees

Reasonable attorney fees are typically included in the shared partition costs. However, they must benefit the common interest of all parties. Specific legal costs can vary significantly between firms. Real estate firms set their rates based on professional experience, reputation, and case complexity.

Recovering Fees and Practical Payment Scenarios

The court understands that property owners may not have the financial resources to pay their portion of the costs out of pocket. Attorney and referee costs can be deducted from the sale proceeds. The remaining proceeds are then distributed to the co-owners. Generally, costs are allocated to owners in proportion to their ownership share.

The statute also allows partition costs to become a lien on each co-owner’s share if specified in the judgment. If a dispute arises only between some parties, the court may require only those litigating to pay the costs of that litigation.

Practical Considerations That Affect Cost Responsibility

When costs are divided among owners, it’s crucial to identify all owners before filing. A complex title or unknown owners can potentially increase costs. The court will need to identify and seek out owners before proceeding.

It is the court's default to assign multiple referees. If the parties agree, the court could assign one referee, which would reduce costs.

One option North Dakota courts allow is a buyout. One co-owner can buy out another at the property's appraised fair market value before the property is sold. This can change how costs are allocated during the transaction.

Seek a Partition Action

The cost of a partition action depends on more than filing a lawsuit. Court fees, attorney involvement, appraisals, and statutory cost allocation all affect the final outcome. Knowing how those expenses are handled under North Dakota law can help you avoid paying more than your share.

Fremstad Law advises property owners through partition actions with a clear, strategic approach designed to resolve disputes efficiently and fairly. To learn how a partition action may affect you financially, schedule a consultation with Fremstad Law today.