What to do When Your Co-Owner Refuses to Pay the Taxes

During the partition process, parties are entitled to request that the court divide the proceeds of sale in a manner that includes uneven payments by parties for expenses such as taxes. This is great news for a co-owner who paid more than their fair share of the property taxes during the co-ownership relationship.

Partition Actions Include an Accounting of Unequal Payments

The California partition statute that allows the court to distribute the proceeds from the sale of a property in a partition in an equitable manner is California Code of Civil Procedure 872.140, which provides that:

The court may, in all cases, order allowance, accounting, contribution, or other compensatory adjustment among the parties according to the principles of equity.

California Code of Civil Procedure 872.140

One court explained that: “There is merit to the contention a plaintiff may be generally entitled to an accounting by requesting a partition.”[1]Finney v. Gomez (2003) 111 Cal. App. 4th 527, 539

A Partition Accounting Will Allow Co-Owners to Recover Unequal Tax Payments

Co-owners often wonder which unequal payments can be reallocated as a recoverable offset.

The Finney court relied on the frequently cited case of Wallace v. Daley, which found that “Every partition action includes a final accounting according to the principles of equity for both charges and credits upon each cotenant’s interest. Credits include expenditures in excess of the co-tenant’s fractional share for necessary repairs, improvements that enhance the value of the property, taxes, payments of principal and interest on mortgages, and other liens, insurance for the common benefit, and protection and preservation of title.” [2]Wallace v. Daley (1990) 220 Cal.App.3d 1028, 1035

The bottom line is that parties in a partition action are entitled to request that the court divide the proceeds of sale in a manner that includes the unequal payments by parties for the mortgage, taxes, insurance, repairs, improvements, and down payments. Talkov Law’s experienced partition attorneys can expedite the process of the accounting, including through a partition referee report on offsets and accounting.

Talkov Law's Partition Attorneys Can Help

If you want to end your co-ownership relationship, but your co-owner won’t agree, a partition action is your only option. With seven, full time partition lawyers, Talkov Law is the #1 partition law firm in California and has handled over 300 partition actions throughout California. Every case has resulted in a sale to either a third party or one of the co-owners. Not a single court has denied our clients the right to partition or declared our client to be a non-owner. Plus, for qualified cases, there is no fee until we settle or win your case!

If you're looking to end your co-ownership dispute, contact California's premier partition action law firm by calling Talkov Law at (844) 4-TALKOV (825568) or sending us a message today.

References

References
1 Finney v. Gomez (2003) 111 Cal. App. 4th 527, 539
2 Wallace v. Daley (1990) 220 Cal.App.3d 1028, 1035
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