CoBuy
Glossary
Partition Action
Glossary

Partition Action

Also known as:  

Partition

TL;DR

A partition action is a court proceeding where a co-owner petitions to divide or force the sale of jointly owned property. It is costly, adversarial, and typically avoidable with proper governance.

What It Means

A partition action is a lawsuit filed by one or more co-owners asking a court to dissolve a co-ownership arrangement by dividing the property or ordering its sale. The right to partition exists by statute in every U.S. state and can be exercised by any co-owner at any time, regardless of ownership share.

Courts typically order either a physical division of the property (partition in kind) or, far more commonly for residential real estate, a court-ordered sale (partition by sale) with proceeds distributed according to each owner's interest.

Partition Action vs. Forced Sale

A partition action and a Forced Sale address the same underlying problem — a co-ownership arrangement that needs to end — but through fundamentally different channels.

FeaturePartition ActionForced Sale
Source of authorityStatute (court-imposed)Co-ownership Agreement (contractual)
Who triggers itAny co-owner, unilaterallyCo-owners per agreed governance terms
Decision-makerJudgeCo-owners (per agreement)
Cost$20,000–$100,000+ in legal feesMinimal (governed by agreement terms)
Timeline6–18 monthsPer agreement (typically 30–180 days)
Relationship impactAdversarial; typically destructiveStructured; preserves framework

Why It Matters for Co-owners

Partition actions are among the most destructive outcomes in co-ownership. They typically involve attorney fees of $20,000–$100,000 or more, take 6–18 months to resolve, and frequently result in the property selling well below market value at a court-ordered auction. Combined losses — legal fees, below-market sale price, and opportunity cost — can exceed $350,000 for a single co-owner group.

Because partition is a statutory right, it cannot be waived entirely. However, its practical likelihood can be reduced to near zero through proper governance.

How to Prevent It

A well-drafted Co-ownership Agreement is the most effective protection. Effective agreements include defined Exit Strategy terms with Buyout procedures, a Right of First Refusal for remaining co-owners, tiered Dispute Resolution mechanisms (negotiation, then mediation, then arbitration before litigation), agreed-upon processes for voluntary dissolution, and remedies for Default that create alternatives to court intervention.

Key Points

  • A legal proceeding to force division or sale of co-owned property
  • Any co-owner can file regardless of ownership share — it is a statutory right
  • Typically costs $20,000–$100,000+ in legal fees and takes 6–18 months
  • Distinct from a Forced Sale, which is a contractual mechanism inside a Co-ownership Agreement
  • A Co-ownership Agreement with exit terms, buyout provisions, and dispute resolution is the most effective prevention
← Back to Glossary

Already co-own?

Protect your investment together.

Co-ownerOS™ Annual Pass gives your group the tools to manage decisions, finances, and what-ifs.

🛡️ Get Co-ownerOS™ Annual Pass