Chicago Partition Actions Lawyer

What Is a Partition Action?

A partition action is a lawsuit filed by one or more co-owners to force the division or sale of jointly owned real estate when the owners cannot agree on what to do with the property. Under Illinois law, any co-owner has the right to seek partition, and this right generally cannot be permanently waived, even by prior agreement among the owners.

The purpose of partition law is straightforward: no person should be compelled to remain indefinitely bound to a property ownership relationship against their will. When voluntary negotiations fail and co-owners reach an impasse over whether to sell, refinance, occupy, or manage property, partition provides a legal mechanism to resolve the deadlock.

Common Partition Scenarios

Partition actions arise in a wide range of situations where joint ownership breaks down and voluntary resolution proves impossible.

Inherited Property Disputes: Family members often inherit property together with fundamentally different goals. One heir may want to sell immediately to access their share of the estate, while another wants to retain or occupy the property. Disputes frequently arise over who should pay ongoing property taxes, insurance, maintenance costs, and whether an occupying heir should compensate non-occupying heirs through rent payments.

Dissolved Business and Investment Relationships: When business partners or co-investors jointly own rental property, commercial buildings, or investment real estate, a breakdown in the underlying relationship often leaves the property in limbo. One partner wants to exit the investment, but the other refuses to buy them out or agree to a sale. Partition becomes the only viable path forward when voluntary buyout negotiations fail.

Failed Joint Purchases: Co-buyers who once shared common goals sometimes find that joint ownership no longer makes sense due to relocation, financial strain, divergent investment strategies, or personal disputes. When neither party will voluntarily relinquish their interest and neither can afford to buy out the other, partition resolves what cannot be resolved through negotiation.

Types of Partition Under Illinois Law

Illinois courts recognize two distinct forms of partition relief.

Partition in Kind (Physical Division)

Partition in kind involves physically dividing the property among the co-owners based on their ownership interests. Each owner receives a separate parcel with an individual deed.

This remedy is typically limited to larger tracts of undeveloped land where physical division is practical and does not materially reduce the property's overall value. Physical division is rarely feasible for single-family homes, condominiums, small parcels, or most commercial buildings, where dividing the property would destroy its utility or significantly diminish its market value.

Partition by Sale

Partition by sale is the far more common outcome in Illinois partition cases, particularly in the Chicago area. When physical division is impractical, the court orders the property sold and the proceeds distributed among the co-owners according to their ownership percentages, subject to equitable adjustments.

The court typically appoints a commissioner or receiver to manage the sale process, which may occur through public auction or private sale. The commissioner ensures the sale is conducted fairly and that proceeds are properly distributed after accounting for costs and financial adjustments among the owners.

Financial Adjustments and Accounting Issues

Partition actions rarely reduce to simply selling property and dividing proceeds equally. Illinois courts must resolve financial claims and equitable adjustments that can significantly affect the final distribution of sale proceeds.

Contribution Claims: When one co-owner has paid more than their proportionate share of carrying costs, including property taxes, insurance premiums, mortgage payments, or necessary maintenance and repairs, that owner is typically entitled to reimbursement from the other owners' shares of the sale proceeds. Contribution claims require documentation of payments made and proof that the expenses were necessary or agreed upon.

Ouster and Rental Value Claims: When one co-owner has exclusively occupied or controlled the property while other co-owners were excluded from use, the court may account for fair rental value when distributing proceeds. An owner who has lived in jointly owned property rent-free while other owners paid carrying costs may see their share of proceeds reduced by the fair market rental value for the period of exclusive occupancy.

Improvement and Enhancement Claims: Disputes frequently arise when one co-owner has made improvements, renovations, or enhancements to the property. Courts evaluate whether the improvements actually increased the property's market value, whether they were necessary or merely cosmetic, and whether other co-owners consented to the improvements. The resolution of improvement claims often requires expert testimony regarding the value added to the property.

These accounting issues are often the most contentious aspects of partition litigation and frequently drive settlement negotiations. Once all parties understand how the court is likely to account for contributions, occupancy, and improvements, voluntary resolution through buyout or negotiated sale becomes more attractive.

Costs and Practical Considerations

Partition litigation involves real costs, including court filing fees, commissioner or receiver fees, appraisal and inspection costs, title work, real estate commissions, and closing costs. These expenses are typically paid from sale proceeds before distribution to the owners. Attorney's fees are generally paid separately by each party.

Because these costs reduce the net proceeds available for distribution, it is important to evaluate whether partition makes economic sense in your specific situation before proceeding. The presence of substantial equity, ongoing carrying costs, and the inability to reach voluntary resolution are all factors that affect whether partition is the appropriate remedy.

In some cases, the filing of a partition action, or the credible prospect of one, motivates negotiations, buyouts, or voluntary sales that avoid prolonged litigation and reduce overall costs. In others, court involvement becomes necessary to resolve disputes that cannot be settled through agreement.

Understanding the likely financial outcome and the strategic value of partition in your situation is an important early step in the process.

How We Help Property Owners in Partition Actions

We work with property owners throughout the Chicago area to resolve co-ownership disputes through partition actions:

For property owners filing partition actions:

• Evaluate whether partition is the appropriate remedy for your situation
• Prepare and file the partition lawsuit with proper documentation
• Position your case to secure accounting adjustments for contributions made
• Create leverage for negotiated buyouts or force a court-ordered sale

For property owners responding to partition lawsuits:

• Document contribution claims for taxes, insurance, and maintenance paid
• Challenge inflated rental value or improvement claims by other parties
• Ensure accounting adjustments reflect actual expenses and added value
• Maximize your share of the final proceeds distribution

Throughout the process:

• Negotiate with co-owners and their counsel
• Coordinate with court-appointed commissioners
• Address property valuation and accounting disputes
• Structure settlements that protect your interests when possible

Whether you need to initiate or respond to a partition action, we help you understand the likely financial outcome and take the steps necessary to protect your interests in the property.