Partition Actions
New York Real Property

A partition action is a legal proceeding brought under New York's RPAPL Article 9 by a co-owner of real property who wants to end the co-ownership — either by dividing the property physically (partition in kind) or by forcing a sale of the property and dividing the proceeds (partition by sale). In New York, any co-owner has an absolute right to bring a partition action regardless of whether the other co-owners consent. Partition actions most commonly arise in four situations: (1) Inherited property — siblings who inherit real estate from a deceased parent disagree about what to do with it. (2) Failed business partnerships — real estate partners who had a falling out want to exit the co-ownership. (3) Unmarried couples — non-married partners who purchased property together separate and cannot agree on the disposition of their jointly owned home. (4) Divorce or separation — parties to a dissolved relationship who own real property together and cannot agree on how to deal with it. A partition action begins when one co-owner files a verified complaint in New York Supreme Court. The complaint must describe the property, identify all co-owners and their interests, and allege that partition is appropriate. Morgan Legal Group represents both plaintiffs seeking partition and defendants in partition proceedings throughout all five NYC boroughs.

New York law recognizes two types of partition: partition in kind (physical division of the property) and partition by sale (sale of the whole property and division of proceeds). Partition in kind is the theoretically preferred form under common law — it preserves each co-owner's ability to independently own their respective portion. However, partition in kind is only practical when the property can be divided into physically distinct portions of roughly equivalent value without significantly impairing the value of any portion. For most New York City real estate — a single-family house, a co-op apartment, or most multi-family buildings — physical division is either impossible or would result in parcels whose combined value is significantly less than the whole. Courts therefore order partition by sale in the overwhelming majority of NYC partition cases. In a partition by sale, the court enters an interlocutory judgment of partition and sale, then typically appoints a referee to supervise the sale. The referee lists the property, receives offers, reports to the court, and upon court approval, closes the sale. The net proceeds (after commissions, legal fees, taxes, and referee's commission) are then distributed among the co-owners in proportion to their ownership interests, subject to adjustments for unequal contributions. Morgan Legal Group regularly represents both parties seeking partition by sale and parties seeking to block such a sale through buyout or other means.

At first glance, the split of partition sale proceeds seems straightforward: each co-owner receives proceeds in proportion to their ownership interest. However, in practice, the accounting often involves significant adjustments. New York partition law requires the referee to take an accounting that credits and charges each co-owner for various contributions and benefits during the period of co-ownership. Items that can affect the accounting include: mortgage payments (a co-owner who made all or most of the payments may be entitled to credit for the other's proportionate share); property tax payments; capital improvements that increased the property's value; carrying costs and maintenance; and rental income (if one co-owner occupied the property while the other did not, an "ouster" analysis may be required to determine whether the occupying co-owner must pay rent to the non-occupying co-owner). The partition accounting can be highly contested, particularly in long-term co-ownerships where both parties made various contributions at different times. Morgan Legal Group represents co-owners in partition accounting proceedings to ensure our clients receive full credit for their contributions throughout all five NYC boroughs.

Yes, a partition action can be stopped or settled at any stage of the proceedings, and settlement is often the preferred outcome for all parties — it avoids the costs, delays, and publicity of a court-supervised partition sale. The most common form of settlement is a buyout: one co-owner agrees to purchase the other's interest at an agreed price (usually fair market value based on an appraisal or comparable sales analysis). Other settlement structures include: a co-owner sale agreement, in which the co-owners agree to sell on the open market through a jointly selected broker and agreed listing price — typically yielding higher proceeds than a referee sale; a co-ownership agreement, in which the co-owners restructure their relationship by agreeing on management responsibilities, expense allocation, rental terms, and future exit rights; or a delayed sale agreement, in which one co-owner agrees to sell their interest at a specified future date. For co-owners open to a resolution, Morgan Legal Group strongly recommends exploring settlement before incurring the costs of full partition litigation — which can consume 5 to 10% or more of the property's value. We represent both plaintiffs and defendants in partition actions throughout all five NYC boroughs.