How to File a Partition Lawsuit in Maryland to Divide Property You Co-Own
Shared ownership of property often causes financial and legal issues for investors, brothers, or partners. Maryland law offers a methodical exit plan when co-owners disagree about how to use or sell something. The first stage toward erasing these shared interests is knowing how to file a Partition Lawsuit in Maryland.
If one or more owners no longer wish to keep a state of indivision, the circuit court has the power to divide the land under Maryland Real Property Code § 14-107.
Understanding Co-Ownership in Maryland
The particular kinds of tenancies shown on the deed significantly affect the legal route to asset division. Maryland recognizes common tenancy, which includes a right of survivorship, and tenancy in common, in which owners hold personal shares that may be unequal.
Whereas these kinds permit partition, a tenancy by the entirety is only for married couples and usually cannot be divided until the marriage is legally terminated. The ultimate division of land or proceeds is determined by the fractional interest kept by each party.
Voluntary Partition and Judicial Partition
Co-owners could decide to divide the property by signing a secret settlement and updated deeds in a voluntary agreement. When parties stay friendly, this approach is usually the least expensive one. But if a settlement is unfeasible, the procedure is known as a court partitioning.
Formal legal action of this kind calls for the submission of a complaint in the circuit court in the vicinity of the property.
Learning how to file a partition lawsuit in Maryland guarantees that a judge may step in to supervise a fair distribution of the estate.
Methods of Dividing Property
The nature of the real estate will guide the court in selecting the most appropriate distribution method. A partition in kind is the physical separation of the property into separate lots for every owner. Should a physical division lead to financial loss—as is typical with single-family homes—the court will order a sale instead of partition.
When this happens, the asset is sold on the open market or at auction, and the net profits are split according to each person’s ownership stake.
Mortgage Liens and Lien Theory State
Since Maryland is a lien-theory state, a mortgage serves as a security interest rather than a conveyance of legal title. When you decide, you must take into account every documented encumbrance, including how to file a partition lawsuit in Maryland.
Before any money is distributed to the co-owners, the sale revenues must cover all mortgage or lender interests. This ensures that the lender’s priority is protected throughout the lawsuit and that the buyer receives a clear title.
Protecting Your Property Interest
Navigating a partition action requires sophisticated procedural guidelines, including the possible hiring of commissioners and appraisers.
An expert partition action lawyer can help you ensure your financial rights are protected and that the division is conducted equitably.
