When a partition action results in a property sale, how do you know what you’ll actually receive? The calculation involves several factors beyond simple ownership percentages.
Here’s how Florida courts determine each co-owner’s share of partition proceeds.
Step 1: Determine the Net Proceeds
Before anything can be divided, the sale must close and expenses must be paid:
Gross Sale Price
− Mortgage payoff
− Outstanding liens (HOA fees, tax liens, judgments)
− Real estate commission
− Closing costs
− Special Magistrate fees
− Court costs and attorney fees (per court order)
= Net Proceeds Available for Distribution
Example:
- Sale price: $450,000
- Mortgage payoff: $150,000
- Closing costs & commission: $30,000
- Attorney fees/costs: $18,000
- Net proceeds: $252,000
Step 2: Establish Base Ownership Percentages
Each co-owner’s starting point is their ownership percentage as shown on the deed:
- 50/50 split: Most common for couples or two siblings
- Unequal shares: 60/40, 75/25, etc. (based on deed or inheritance)
- Multiple owners: Three siblings might each own 33.33%
The deed controls unless there’s a written agreement stating otherwise.
Step 3: Calculate Contribution Credits
Now the accounting begins. Contribution credits adjust the distribution based on who actually paid for what.
Recoverable expenses include:
- Mortgage payments (principal and interest)
- Property taxes
- Homeowners insurance
- HOA or condo fees
- Necessary repairs (roof, plumbing, HVAC, structural)
- Down payment contributions at purchase
The calculation:
For each expense category, determine:
- Total amount paid during co-ownership
- Each owner’s share based on ownership percentage
- What each owner actually paid
- The difference between what they paid and what they owed
Example:
50/50 co-owners. Over 3 years:
| Expense | Total Paid | Your Share (50%) | You Paid | Co-Owner Paid |
|---|
| Mortgage | $72,000 | $36,000 | $72,000 | $0 |
| Taxes | $18,000 | $9,000 | $18,000 | $0 |
| Insurance | $6,000 | $3,000 | $6,000 | $0 |
| Totals | $96,000 | $48,000 | $96,000 | $0 |
You paid $96,000. You only owed $48,000 (50%). Your contribution credit is $48,000.
This $48,000 comes out of the co-owner’s share before the remaining proceeds are divided.
Step 4: Calculate Ouster Credits (If Applicable)
If one co-owner had exclusive possession and excluded the other, the excluded owner may recover an ouster credit.
Ouster credit formula:
Fair Market Monthly Rent × Months Excluded × Your Ownership % = Ouster Credit
Example:
Your co-owner lived in the property for 2 years and locked you out. Fair market rent is $2,500/month. You own 50%.
$2,500 × 24 months × 50% = $30,000 ouster credit
This $30,000 is added to your share and deducted from theirs.
Step 5: Apply Credits to Base Shares
Now combine everything:
Using our examples:
Net proceeds: $252,000
Base shares (50/50):
- Your base: $126,000
- Co-owner base: $126,000
Apply contribution credit ($48,000):
- Your share: $126,000 + $48,000 = $174,000
- Co-owner share: $126,000 − $48,000 = $78,000
Apply ouster credit ($30,000):
- Your share: $174,000 + $30,000 = $204,000
- Co-owner share: $78,000 − $30,000 = $48,000
Final distribution:
- You receive: $204,000 (81% of net proceeds)
- Co-owner receives: $48,000 (19% of net proceeds)
Despite 50/50 ownership, the actual distribution reflects who paid and who was excluded.
What Doesn’t Count as a Credit?
Not all expenses create contribution credits:
- Elective improvements: Cosmetic upgrades, landscaping, remodeling for personal preference
- Personal benefit offset: If you lived in the property, your “rent equivalent” may reduce your credits
- Undocumented payments: If you can’t prove you paid, you may not receive credit
The Importance of Documentation
Notice how the entire calculation depends on proving what you paid. Without documentation:
- You can’t establish contribution credits
- You can’t prove ouster occurred
- You may receive only your base ownership share
Keep bank statements, cancelled checks, receipts, and communications. The co-owner with better records wins the accounting battle.
What If We Can’t Agree on the Numbers?
During a partition case, the accounting is often contested. The court may:
- Order discovery to exchange financial records
- Require depositions to establish payment history
- Hold an evidentiary hearing on disputed amounts
- Appoint an expert to calculate credits
Ultimately, the judge determines what credits each party receives based on the evidence presented.
The Bottom Line
Your share from a partition sale depends on:
- Your ownership percentage
- Your documented contribution credits
- Any ouster credits you can prove
- The court’s allocation of fees and costs
Understanding these calculations helps you evaluate settlement offers and set realistic expectations for your recovery.