Dec202025
Partition Action Q&A Series

Can I get reimbursed for mortgage payments and carrying costs I covered if the court orders a sale? – North Carolina

Short Answer

Yes—North Carolina law generally allows a co-owner (cotenant) to seek contribution (reimbursement) in a partition case for “carrying costs” paid to preserve the property, including mortgage payments, property taxes, insurance, and certain repairs. In a partition by sale, the court can account for those payments when it divides the net sale proceeds. The key is raising the request in the partition case (not waiting until after closing) and backing it up with clear records.

Understanding the Problem

In North Carolina, when two people co-own a home and one person pays most or all of the mortgage and other ongoing expenses, a common question is whether those payments can be repaid if the co-ownership ends through a partition by sale. The decision point is whether a cotenant can ask the court handling the partition to credit that cotenant for mortgage payments and other carrying costs when the property is sold and the proceeds are divided.

Apply the Law

North Carolina’s partition statutes allow a cotenant to seek “contribution” for certain costs paid to preserve the value of the co-owned property. In a partition by sale, that contribution issue can be raised during the partition proceeding and, if proven, the court can adjust how the net sale proceeds are split. North Carolina law also recognizes related reimbursement rules for taxes and certain repair or encumbrance payments, and the court may use equitable adjustments so one cotenant is not unfairly disadvantaged when one person carried more of the property’s expenses.

Key Requirements

  • Qualifying costs (“carrying costs”): The payment must be an actual cost of preserving the value of and the cotenants’ interests in the property—commonly property taxes, homeowner’s insurance, repairs, and payments on the loan used to acquire the property.
  • Proper request in the partition case: The cotenant seeking reimbursement must apply to the court in the partition proceeding so the court can order contribution and adjust the distribution of proceeds.
  • Proof and fair allocation: The cotenant must be able to prove what was paid, when it was paid, and that it should be shared based on the cotenants’ ownership interests, subject to equitable adjustments and any offsets the other cotenant may claim.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the property is co-owned by relatives, and one cotenant has covered mortgage payments and other ongoing expenses while living out of state and seeking a partition by sale to end the co-ownership. Those mortgage payments and common “carrying costs” like taxes and insurance are the types of expenses North Carolina law often treats as shareable preservation costs in a partition case. If the cotenant seeking partition timely asks the court for contribution and supports the request with documents (loan statements, tax bills, insurance invoices, receipts), the court can account for those payments when dividing the net sale proceeds.

Process & Timing

  1. Who files: A cotenant seeking partition (and reimbursement/contribution). Where: Typically the Clerk of Superior Court in the North Carolina county where the real property is located. What: A partition petition plus a request (application/motion) for contribution/credits for carrying costs, supported by an accounting and records. When: In a partition by sale, the contribution request may be made during the partition proceeding; waiting until after a sale is underway can create avoidable disputes.
  2. Accounting phase: The parties often exchange payment histories and documents, and the court resolves what counts as carrying costs, what amounts are proven, and whether any offsets apply. Disagreements about exclusive use, rent value, or nonessential work can affect the final credit.
  3. Sale and distribution: After the sale closes and costs/fees are paid, the court distributes net proceeds based on ownership shares as adjusted by any court-ordered contribution/credits.

Exceptions & Pitfalls

  • Exclusive possession and offsets: If one cotenant had sole use of the property for a period, the other cotenant may argue for an offset (for example, fair rental value) that reduces the reimbursement credit, and certain reimbursement rights can be limited during periods of exclusive possession.
  • Not every payment qualifies: “Carrying costs” generally cover preservation-type expenses (taxes, insurance, necessary repairs, and purchase-money loan payments). Upgrades and remodeling may be treated differently and are often capped at the lesser of cost or the value added as of the case filing date.
  • Weak documentation: Cash payments, missing statements, or mixing personal expenses with property expenses can make it hard to prove the amounts and dates needed for a court-ordered credit.
  • Waiting too long to ask: In a sale case, the safest practice is to raise the contribution request early in the partition proceeding so it can be resolved before final distribution.

Conclusion

In North Carolina, a cotenant who paid the mortgage and other qualifying carrying costs for a co-owned home can usually ask the partition court to credit those payments when the property is sold and the net proceeds are divided. Carrying costs commonly include property taxes, insurance, necessary repairs, and payments on the loan used to acquire the property, and tax contribution is generally limited to amounts paid in the 10 years before filing. The next step is to file the partition petition and a contribution request in the county where the property sits.

Talk to a Partition Action Attorney

If a co-owner has been paying the mortgage, taxes, and other bills and a partition sale is on the table, an attorney can help present the contribution request clearly and on time so the proceeds distribution is handled correctly. Call us today at (919) 341-7055.

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.

Category: Partition Action Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.