How Much Do Partition Actions Cost In Colorado

Like anything else in life, this depends.

Partition actions in my opinion can be divided into a few stages. The details of each stage can vary depending on the judge, the needs of the case, and so on. Please note that each stage is not all-inclusive and the stages may interlap, vary, and be inconsistent.

But overall, there are certain patterns that tend to influence the overall cost of a partition action.

Stage 1: Pre-litigation

This phase often consists of legal research, negotiation, and attempted settlement.

At this point, nothing has been filed, the attorney is developing facts, talking to adverse parties, and trying to assess if a settlement is feasible.

Unlike some actions, partition actions are based on statutory rules. Further, the Colorado courts have provided some fairly clear case law as to how to calculate how much each party may be entitled to based on those statutes. Thus, there is a starting point for negotiations not based on illusion but on case law and math.

Any estimate provided by the attorney is an estimate. In essence, they are taking the numbers that you provided and plugging them into a formula that the courts have provided.

Yes, every case is different, they will each have their own distinct set of legal and factual problems, and until a final judgment is rendered nothing is set in stone. But, it is not uncommon to see these actions settle prior to filing any litigation.

Often the problems boil down to who paid what and how much is the house worth.

If the parties can agree on a number, the settlement can be distilled into a contract to buy out the other parties’ share, sell the property, divide the property or other.

If a settlement can be reached pre-litigation, the costs of a partition action can be fairly affordable. As always costs depend on complexity, the amount of work involved, if the other party is willing to settle, contract drafting, and so on. But to negotiate a contract to buy out another party’s share on a residential house, it can often be done for less than $10,000 which may be less than what you would pay a realtor to sell the house. I have seen them done for less. It all depends.

Stage 2: Litigation

This phase often consists of Commencing Litigation, Discovery, Appointing a Commissioner, Mediation, experts, motion practice, trials, and so on.

In short, once a case reaches the litigation phase you need to treat it as if it is going to trial. Often this can be expensive because a lot of legwork is required.

While every attorney approaches litigation differently, my personal opinion is that if you are going to bring an action you better be able to back up your position. Thus, I like to be overprepared at trial. IE, be the hammer, not the nail.

Some of the bigger expenses at this stage may include hiring experts, conducting appraisals, and paying commissioners. Legal fees will depend on how much work is needed. But this phase will often account for the majority of the legal fees.

Stage 3: Final Order, Compliance, Division of Property, Sale of Property.

The next phase that affects costs is the final order. IE, what is being done with the property? If the court orders the property to be sold, then this may include auction fees, real estate agent fees, and so on. If the court orders the property to be divided in a particular way, this may include survey fees, drafting fees, and so on.

Regardless, at this point, you have gone through the entire process and are on the higher end of costs and legal fees.

Stage 4: Appeals

This stage does not always happen but it can. An appeal can affect every portion of a partition action. In short, a party is asking another set of judges to review a ruling that your judge may have made. An appeal can undue a decision, require an issue to be retried, and so on. Factual disputes and legal disputes are treated differently. As such, a cost-to-benefit analysis should be done. IE, don’t chase the penny at the expense of a dollar.

When Do I Pay?

Again this depends. Certain fees like court fees have to be paid as they are incurred. In certain cases, real estate agents, commissioners, and others may wait to get paid until the property sells.

Legal Fees will depend on the arrangement that you make with your attorney. I tend to be very flexible but I require everything to be spelled out in the engagement letter. Thus, it is important that you discuss your budget with your attorney early. Some attorneys will defer fees, do contingency fee arrangements, and so on.

Hope this helps everyone. I apologize I could not give a precise number. For a residential house, a partition action can cost upwards of $25,000. But in many situations, it can cost a lot less. Talking to your attorney about your goals, costs, and ideas is essential to a good working relationship. I offer free 30-minute case evaluations where we can discuss potential cost options.

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.