
It’s common in Connecticut for investors, family members, and others to own property jointly, but what happens when there’s a disagreement among the joint owners and one or more of them do not want to continue the joint ownership arrangement?
“If two or more people own property together, they can’t be compelled to continue owning it jointly,” explained Attorney Allison “Allie” Noteware. “If a falling out between property owners occurs, each property owner has recourse.”
For example, if the matter goes to court, the court can order partition in kind, which means the property would be divided and each owner would receive a portion of it.
This measure can only be used when the property in question can easily and logically be divided into pieces. Because most properties are not capable of being divided in this manner, the more common resolution is for the court to order a partition by sale, which means the property would be sold and each owner would receive a sum that represents his or her ownership value.
Under the partition by sale umbrella, Connecticut statutes now include a hybrid option for the court if it finds that one owner has only a “minimal interest” in a property. In such a case, the court can order that minimal interest to be bought out for “just compensation” by the remaining owner(s), according to Connecticut General Statute (CGA) 52-500(a).
In an overarching sense, Connecticut statutes concerning legal issues that arise from the joint ownership of property clearly state that a partial owner cannot be compelled to remain a party in a joint ownership situation.
“On any complaint for the sale of real or personal property, the court in which the case is pending may make any order necessary to protect the rights of all parties in interest and to carry the sale into effect,” according to Connecticut General Statute 52-502(a). This is because a partition action is an equitable proceeding, which means the court has the powers to enter orders ensuring fairness and justice.
The equitable nature of a partition action also allows a partition lawsuit to be accompanied by a request for an accounting when one or more joint owners have contributed more than their fair share of expenses in the history of the joint ownership of the property. A request for an accounting in this context asks the court to order either direct payment from a co-owner (in the context of a partition in kind) or a reduction in a co-owner’s proceeds, if any, from the partition sale in the amount of the deficiency of the co-owner’s contributions.
“The right to partition has long been regarded as an absolute right, and the difficulty involved in partitioning property and the inconvenience to other tenants are not grounds for denying the remedy,” said the Appellate Court decision in Rissolo v. Betts Island Oyster Farms. “No person can be compelled to remain the owner with another of real estate, not even if he becomes such by his own act; every owner is entitled to the fullest enjoyment of his property, and that can come only through an ownership free from dictation by others as to the manner in which it may be exercised.”
“Therefore, the law affords to every owner with another relief by way of partition,” the decision continues. “To effectuate the foregoing principle, General Statutes 52-495 [AMN1] gives discretionary authority to courts of equitable jurisdiction to order, upon the complaint of any interested person, the physical partition of any real estate held by tenants in common. An action for partition at common law was equitable in nature, requiring courts to examine all relevant circumstances. The determination of what equity requires in a particular case, the balancing of the equities, is a matter for the discretion of the trial court.”
If you need legal assistance with an issue involving the joint ownership of property, reach out to Attorney Noteware by phone at (860) 567-8718, or by email at anoteware@crameranderson.com.
About Cramer & AndersonCramer & Anderson provides sophisticated legal services, close to home, with regional offices in New Milford, Litchfield, Danbury, and Ridgefield. For more information, see the firm’s website or call the flagship office in New Milford at (860) 355-2631.