Jan72026
Partition Action Q&A Series

How are carrying costs like taxes, insurance, and maintenance handled when one co-owner has been paying them and wants reimbursement? – North Carolina

Short Answer

In a North Carolina partition case, a co-owner who paid certain “carrying costs” (like property taxes, homeowner’s insurance, necessary repairs, and some loan payments) can usually ask the court for contribution from the other co-owner(s). The court typically handles this by giving the paying co-owner a credit in the final accounting—either through an adjustment to sale proceeds or an adjustment to the shares in an actual partition. Important limits can apply, including rules tied to exclusive possession and a 10-year lookback for property tax reimbursement in the partition proceeding.

Understanding the Problem

In a North Carolina partition action, can one co-owner get reimbursed when that co-owner has been paying property expenses such as taxes, insurance, and maintenance while the property is jointly owned? The issue usually comes up when co-owners are separating their interests through a partition sale or an actual partition, and one side claims a credit for money spent to keep the property from losing value. The decision point is whether the claimed expenses qualify as reimbursable carrying costs (and whether any limits apply) so the court can fairly adjust the final division.

Apply the Law

North Carolina’s partition statutes allow a cotenant (co-owner) to seek contribution for “carrying costs” paid to preserve the property and the co-owners’ interests. In practice, the reimbursement request is handled as part of the partition accounting and is resolved before the final division of property or distribution of sale proceeds. The proceeding is typically filed as a special proceeding with the Clerk of Superior Court in the county where the real property is located, although some disputes can be transferred for hearing in Superior Court depending on the issues raised.

Key Requirements

  • Qualifying expense: The payments must fit within reimbursable categories (for example, taxes, insurance, necessary repairs, and certain loan payments) rather than purely optional spending.
  • Proof and allocation: The paying co-owner must be able to document what was paid, when it was paid, and why it was necessary, so the court can allocate each co-owner’s share.
  • Limits that can reduce or bar reimbursement: Certain rules can limit reimbursement, including restrictions tied to exclusive possession and a statutory time limit on how far back property tax reimbursement can reach in the partition case.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the dispute centers on whether the co-owner/former partner’s claimed “carrying costs” should reduce the other co-owner’s share in a partition outcome. Under North Carolina law, the starting point is that qualifying carrying costs—such as property taxes, homeowner’s insurance, and necessary repairs—can be reimbursed through contribution in the partition proceeding if the paying co-owner proves the amounts and timing. The final number often depends on whether the expenses were necessary to preserve the property and whether any limiting facts apply (for example, whether the paying co-owner had exclusive possession during the period of payment).

Process & Timing

  1. Who files: Any cotenant seeking partition, and a cotenant seeking reimbursement typically raises it by application/motion within the partition case. Where: The Clerk of Superior Court in the county where the property is located (as a special proceeding). What: A request for contribution/credits supported by documentation (tax bills, insurance declarations, invoices/receipts, canceled checks, loan statements). When: For an actual partition, the statute allows the contribution request to be asserted before the commissioners file their report; for a partition sale, it may be asserted during the partition proceeding.
  2. Accounting and objections: The other co-owner can dispute whether an item is a true carrying cost, whether it was necessary, whether it was paid, and whether any offsets apply (for example, exclusive possession issues). If the dispute becomes fact-intensive, it can increase the likelihood of hearings, added filings, and delay.
  3. How reimbursement is applied: If the property is sold, the court can account for approved carrying costs by adjusting the distribution of net sale proceeds. If the property is actually partitioned, the court can account for contribution through adjustments to the shares and, when needed, owelty (a balancing payment) so the division remains equitable.

Exceptions & Pitfalls

  • Exclusive possession can change the math: North Carolina law can limit reimbursement for certain items (including some repairs and interest) if the paying co-owner had exclusive possession during the period the costs were incurred. Disputes often turn on what “exclusive possession” means in the real-world living/occupancy history.
  • Not every “maintenance” item is reimbursable: Courts tend to distinguish between necessary repairs that preserve value and optional upgrades or improvements. Improvements may be handled differently than repairs, and the recoverable amount may be capped (often tied to cost versus value added as of the start of the proceeding).
  • Documentation problems: Reimbursement claims commonly fail or shrink when the paying co-owner cannot produce clear proof of payment, cannot tie the expense to the property, or mixes personal expenses with property expenses.
  • Offsets and fairness issues: Even when carrying costs are real, the court may consider whether there should be offsets (for example, if one co-owner received the primary benefit of the property during the same period). These issues can also affect whether mediation resolves the case faster than scheduling a contested hearing.

Conclusion

In North Carolina partition cases, a co-owner who paid qualifying carrying costs—such as property taxes, homeowner’s insurance, necessary repairs, and certain acquisition loan payments—can usually seek contribution as part of the partition accounting, with the court adjusting the final division or sale proceeds. Property tax contribution in the partition case is generally limited to taxes paid within the 10 years before the partition petition. The practical next step is to file a documented request for contribution in the partition proceeding with the Clerk of Superior Court before the key partition milestones in the case.

Talk to a Partition Action Attorney

If a co-owner is claiming reimbursement for taxes, insurance, or maintenance in a North Carolina partition dispute, an attorney can help evaluate which items qualify as carrying costs, what proof is needed, and how timing and procedure affect the final credit. 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.