Jan212026
Partition Action Q&A Series

If the other co-owner paid property taxes while living in the home, can they ask the court to reimburse them out of my share of the proceeds? – North Carolina

Short Answer

Yes. In a North Carolina partition sale, a co-owner can ask the court to reimburse them for property taxes they paid as a “carrying cost,” and the court can adjust each co-owner’s share of the net sale proceeds to account for that payment. For property taxes, North Carolina law generally limits the claim to taxes paid in the 10 years before the partition case was filed, plus interest at the legal rate. The co-owner must raise the request in the partition case and support it with proof of payment.

Understanding the Problem

In a North Carolina partition sale handled by a court-appointed commissioner, a common question is whether one co-owner can reduce the other co-owner’s share of the sale proceeds by claiming reimbursement for property taxes paid while living in the home. The decision point is whether North Carolina partition law allows a co-owner to seek a contribution credit for taxes as part of the court’s distribution of the net proceeds from the sale. The timing usually matters because the request must be made within the partition case before the court finalizes how proceeds will be divided.

Apply the Law

North Carolina’s partition statutes allow the court to make equitable adjustments between co-owners when the property is sold, including credits for “carrying costs” like property taxes. A co-owner who paid more than their share of qualifying carrying costs may apply to the court for contribution, and the court can account for that claim when it distributes the net sale proceeds. For property taxes specifically, the right to contribution in a partition case is generally limited to taxes paid during the 10 years before the partition petition was filed, plus interest at the legal rate.

Separately, North Carolina law also addresses what happens when one co-owner pays property taxes that are a lien on the property. If one co-owner pays more than their share of those taxes (without an agreement that they were paying on behalf of the others), the excess can become a lien in that co-owner’s favor against the other co-owners’ shares, and it can be enforced in the partition proceeding.

In practice, these issues are handled through an “accounting” in the partition case: the co-owner seeking reimbursement must raise the issue and provide documentation, and the court decides what gets credited and how it affects the final split of net proceeds.

Key Requirements

  • Qualifying expense (property taxes as a “carrying cost”): The payment must be a carrying cost tied to preserving the property and the co-owners’ interests (property taxes generally qualify).
  • Proper request in the partition case: The co-owner must apply to the court for contribution during the partition proceeding (not after distribution is finalized).
  • Proof and limits: The co-owner must prove what was paid and when; for property taxes, the claim is generally limited to taxes paid in the 10 years before the partition petition was filed, plus interest at the legal rate.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the home is being sold through a partition process with a court-appointed commissioner, and closing is pending. If the other co-owner can document that they paid property taxes that preserved the property (and those payments fall within the statutory lookback period), they can apply to the court for a contribution credit. If the court allows the claim, it typically gets handled as an adjustment when the net sale proceeds are distributed, which can reduce the amount released to the non-paying co-owner.

Process & Timing

  1. Who files: The co-owner seeking reimbursement. Where: The Clerk of Superior Court in the county where the partition case is pending (the same file where the commissioner was appointed). What: An application/motion in the partition proceeding requesting contribution/credit for property taxes, supported by an accounting and proof of payment. When: In a partition sale, the statute allows the request to be made during the partition proceeding; practically, it should be raised before the court enters the order distributing net sale proceeds.
  2. Documentation and review: The requesting co-owner typically submits tax bills, receipts, county tax payment records, and a summary showing dates and amounts. The other co-owner can object, dispute amounts, argue the payments fall outside the allowed time window, or argue an agreement existed about who would pay.
  3. Court decision and distribution: The court decides what amount (if any) is allowed and then directs the commissioner how to distribute net proceeds after costs of sale and other court-approved items. The adjustment is usually reflected in the final distribution order.

Exceptions & Pitfalls

  • Lookback limit: Even if taxes were paid for longer than a decade, the partition contribution statute generally limits property-tax reimbursement to the 10 years before the case was filed (plus interest), so older payments may not be credited.
  • Proof problems: Claims often fail or get reduced when the co-owner cannot prove payment dates/amounts, paid from a joint account without clear allocation, or mixes taxes with unrelated expenses.
  • Agreement or offset disputes: If there was an agreement about who would pay taxes (or an understanding tied to living in the home), that can change how the court views reimbursement. Also, other offsets may be raised in response (for example, disputes about other carrying costs or credits), which can delay distribution.

For more background on how courts handle these adjustments in a sale case, see carrying costs like taxes, insurance, and maintenance and how sale proceeds get released to each co-owner in a North Carolina partition case.

Conclusion

In North Carolina, a co-owner who paid property taxes can ask the court in a partition sale to reimburse them by adjusting the split of the net sale proceeds. Property taxes are treated as a carrying cost, and the claim generally covers only taxes paid in the 10 years before the partition petition was filed, plus interest at the legal rate. The next step is to file an application in the partition case with the Clerk of Superior Court requesting a contribution credit and attaching proof of the tax payments before the court enters the final distribution order.

Talk to a Partition Action Attorney

If a co-owner is claiming reimbursement for property taxes as the sale is closing, our firm has experienced attorneys who can help explain how contribution credits work, what documents matter, and what deadlines to watch in the partition case. 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: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.