How do Partition Actions work in Colorado?

Partition actions in Colorado are governed by a set of statutes that layout the rules and procedures associated with the action.

A Partition action itself is a court procedure for dividing or selling property where co-owners cannot agree on what to do with the property.

Where do you see partition actions?

Partition actions are not as common as you may think. The first step for any co-owner of property is to talk to the other owner and try to come to an acceptable resolution. But sometimes that is not possible. People fight.

A few common places where partition actions may arise are as follows. This is by no means an all inclusive list.  

·       Property owned by unmarried couples.

·       Property owned by relatives.

·       Property where owners make unequal contributions.

·       Property where one owner is in possession and the other is not.

·       Property where there is a factual dispute.

What can a court do in a partition action?

In Colorado, the court has the authority to split and/or sell the property. The default position is that the court should split the property where possible. Where not possible or where the division would result in an unfair result the court has the discretion to sell the property.

Properties that are often sold via split include residential property. It makes sense logically if you think about it. Most residential properties have a single house on the property. It would not be feasible for the court to divide the house among the parties, so sale is the better option. In the alternative, the parties can often agree to sell the property versus split it.

A commissioner is often appointed to help the court either divide the property or sell it. This commission can be a real estate agent or other qualified person. The commissioner can make recommendations and perform actions if so, empowered by the court which can include selling the property.

In addition, there is another benefit to a partition action. The court is given broad authority to make such orders as it deems necessary to promote the ends of justice to completely adjudicate every question and controversy concerning the title, rights, and interest of all persons whether in being or not, known or unknown, and may direct the payment and discharge of liens and have the property sold free from any lien or may apportion any lien among the persons to whom the partition is made. In other words, the court has broad discretion to fairly distribute the property, pay off creditors, and so on.

The additional powers granted to the court can be extremely important where certain parties have contributed more to the property than other. The court can take these contributions into consideration when making their allocation.

Do I need an attorney for a Partition Action in Colorado?

As an interest holder, you have a right to file a partition action by yourself. That being said, partition actions can be complex and result in disastrous consequences if not handled properly. What is 1% point worth on your property? It can be allot.

Partition actions are often tried in district court. The distinction between county and district court should not be overlooked. District court has a separate set of rules and in some case can be more complicated than county court.

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Does property get split equally in a Partition Action?

A 50/50 split may be appropriate in some situations. It may not be appropriate in others. “To promote the ends of justice,” is the phrase of the day. The court is required to consider both the ownership interest and the contributions made by the parties. Contributions may include maintenance, improvements, and so on.  

The court will then make appropriate adjustments that get applied to either the division or the sale.

What happens to the mortgage in a Partition Action?

Things such as mortgages typically get paid off when the property is sold or allocated appropriately.

PLEASE DO NOT RELY ON ANY PORTION OF THIS ARTICLE AS VALID LAW. THE PURPOSE OF THIS ARTICLE IS TO GIVE THE READERS A BRIEF OVERVIEW OF PARTITION ACTIONS. THIS IS NOT LEGAL ADVICE. LAWS AND RULES CHANGE ON A REGULAR BASIS. CONTACT AN ATTORNEY FOR THE MOST UP TO DATE LAWS.