How Partition Sales Can Recover Financial Investments In Shared Properties
Out of all the financial assets between couples, shared property is one of the most expensive. But what happens to the shared property in the event of divorce or separation from a long-term partner?
Typically, the ex-partners come to an agreement on who gets to keep the shared home. However, the property owners don’t always agree. In most scenarios, one wants to sell the house, the other wants to keep it.
When the homeowners can’t come to a fair agreement, it’s time to contact a lawyer to start a partition sale. These types of property sales can be challenging, but with an experienced attorney by your side, you’ll receive the money you deserve.
What Is A Partition Sale?
If someone owns a shared property, they have the right to sell their stake in the home and acreage, regardless of their relationship status with the co-owners. Partition sales were created for individuals who want to sell their portion of property, but cannot agree on the sale with the other homeowners.
When a partition sale is initiated, parties can:
- Be forced to sell the property
- Buy out the property
- Adjust their acreage distribution (if land is owned by multiple people)
Partition sales give co-owners a chance to keep the property and buy out the individual selling. But, if the other party cannot afford to buy out the property, they will be forced to sell their portion.
Initiating a partition sale helps unmarried couples obtain some of their financial contribution in the event of separation. However, it can be a complicated process, so you’ll need a lawyer to protect your financial stake in the property.
What Is The Sunk Cost Fallacy (And How Does It Relate To Partition Sales)?
The sunk cost fallacy describes a thinking pattern where individuals are hesitant to remove themselves from a situation where they have invested significant time, money, or emotional resources in.
For example, people who have been dating for one year will have an easier time splitting up compared to individuals who have been together for ten years. The longer the relationship and the more money invested, the harder it is to leave.
In fact, some couples avoid separating (despite feeling unhappy) because they have invested so much into their relationship that splitting assets fairly feels impossible. Especially if you’ve purchased property together.
That’s what makes partition sales so important — it negates the sunk cost fallacy by allowing individuals to recuperate some of their financial investments on a shared property.
So while the law can’t recover your time and emotional resources spent in a relationship, a family law attorney with experience in property division can help recover your financial contributions.
Estate Partition Sales
While this blog post focuses on married and long-term couples looking to divide assets, it’s important to mention another prominent situation that can lead to a partition sale: heirs to an estate.
Now, here’s where things get really sticky. The deceased’s will (or lack thereof) can affect the partition sale. The estate heirs have an undetermined stake in the property — meaning that everyone gets an equal piece.
But determining exactly how to divide the property evenly isn’t easy. It can be a lengthy process, which is why law officials recommend heirs come to a mutual agreement outside of court. However, in the event that heirs cannot agree, a partition sale can be initiated by a lawyer.
Let Hickey & Hull Fight For Your Financial Assets
Leaving a long-term relationship is physically and emotionally taxing — don’t let it be financially draining too! Contact Hickey & Hull for a consultation today and find out if you have a case for a partition sale.
With five legal offices across the state in Fort Smith, Little Rock, Fayetteville, Russellville, and Mena, our team of professionals are eager to fight for our client’s rights. The process is simple, just use our online chat, email form, or call your local office to schedule your initial consultation.