Probate Q&A Series

Can proceeds from timber on our jointly owned farm be distributed in a partition action? – North Carolina

Short Answer

Yes. In a North Carolina partition case, timber standing on the land is part of the real estate. If timber is harvested or sold, the Clerk of Superior Court can require an accounting and distribute the net proceeds among the co-owners according to their shares, with adjustments for expenses, prior agreements, and any unauthorized cutting (waste). If the court orders a sale of the land or the timber, the proceeds are paid into court and distributed by order.

Understanding the Problem

You want to know whether money from timber on a jointly owned North Carolina farm can be divided in a partition proceeding. You and a relative co-own the farm; the relative has offered to buy you out, and you are considering filing for partition to force a division or sale. The question is whether the court can include timber proceeds in what gets divided.

Apply the Law

Under North Carolina law, a co-owner may seek partition of real property in the county where the land lies. The Clerk of Superior Court decides whether to divide the land in kind or order a sale. Timber growing on the land is part of the real property until cut. The clerk may require an accounting among co-owners for rents, profits, and waste, which includes the value or proceeds of timber harvested by a co-owner, and then adjust shares, charges, and credits before distributing sale proceeds or entering a final order.

Key Requirements

  • Co-ownership: You and at least one other person hold title to the farm (typically as tenants in common), making it subject to partition.
  • Forum and venue: File the partition with the Clerk of Superior Court in the county where the farm is located; the clerk oversees division or sale.
  • Division or sale: The clerk can appoint commissioners to divide in kind or order a judicial sale if an equal division is impractical or injurious.
  • Accounting and adjustments: The clerk may require an accounting for rents, profits, and waste; timber proceeds can be credited or charged before distribution.
  • Heirs property procedures (if applicable): If the farm is “heirs property,” additional appraisal and co-owner buyout steps may apply before any sale.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Because you and your relative co-own the farm, it is subject to partition in the county where it sits. In that special proceeding, the clerk can either divide the property in kind or order a sale. If there has been, or will be, a timber harvest, the clerk can require an accounting so that timber value or proceeds are credited and distributed fairly, with adjustments for costs and any unauthorized cutting.

Process & Timing

  1. Who files: Any co-owner. Where: Clerk of Superior Court in the county where the farm is located. What: A verified petition for partition requesting division in kind or sale and asking for an accounting of timber, rents, profits, and waste. When: There is no short statute of limitations for filing partition, but raise timber issues early so they are included in the proceeding.
  2. The clerk serves all co-owners, determines whether division in kind is feasible, may appoint commissioners, and may order mediation. If a sale is necessary, the sale follows judicial sale procedures; proceeds are deposited with the court.
  3. The clerk reviews any accounting, applies charges/credits (including timber proceeds and related expenses), and enters a final order distributing land or proceeds accordingly.

Exceptions & Pitfalls

  • If the land qualifies as “heirs property,” additional steps (appraisal and potential co-owner buyout rights) can delay or change a sale.
  • Unauthorized timber cutting by a co-owner may be treated as waste; the clerk can charge the responsible co-owner and credit others before distribution.
  • Document timber volumes, stumpage prices, contracts, and logging costs; poor records make accurate credits and charges difficult.
  • Include all co-owners and any parties with recorded interests; missing parties can undermine the order.
  • If a timber deed or lease exists, its terms can control who receives harvest proceeds; provide it to the clerk.

Conclusion

Yes. In a North Carolina partition, timber is part of the real estate, and the clerk can require an accounting and distribute timber proceeds as part of the final division. The controlling steps are to file a verified partition petition in the county where the farm lies, ask the Clerk of Superior Court to require an accounting for timber, rents, profits, and waste, and, if a sale occurs, have proceeds deposited and distributed by court order.

Talk to a Partition Action Attorney

If you’re dealing with a co-owned farm and want to ensure timber proceeds are handled fairly in partition, our firm has experienced attorneys who can help you understand your options and timelines. Call us today to discuss your case.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.