Apr262026
Partition Action Q&A Series

How can I get credit for the mortgage and carrying costs I paid by myself on a co-owned home? – NC

Short Answer

In North Carolina, a co-owner who paid the mortgage and other carrying costs alone can usually ask for contribution in a partition case. That means the court can credit part of those payments when it divides the property or sale proceeds, especially for costs that preserved the home, such as loan payments, taxes, insurance, and repairs. The request should be raised during the partition proceeding, and property tax claims have a specific 10-year lookback.

Understanding the Problem

In North Carolina, the main question is whether one co-owner can receive credit when that co-owner alone paid the mortgage and other necessary costs on a jointly owned home while the parties work toward a buyout or other partition resolution. The issue usually turns on whether the payments were carrying costs tied to preserving the property, when the claim is raised in the partition case, and how the court accounts for those payments when setting each side’s share.

Apply the Law

North Carolina partition law gives a cotenant a right to contribution for certain payments made for the property. The main forum is the clerk of superior court handling the partition proceeding, although some issues may move into the civil action as the case develops. A co-owner seeking credit should assert that claim within the partition proceeding, and in a partition sale the statute allows the request at any time during that proceeding.

Key Requirements

  • Cotenant status: The person asking for credit must be a co-owner of the property, such as a tenant in common or joint tenant.
  • Qualifying payments: The payments must be carrying costs that preserved the property or the owners’ interests, such as mortgage payments on the acquisition loan, property taxes, homeowner’s insurance, and repairs.
  • Timely request in the case: The claim for contribution should be made in the partition proceeding so the court can adjust the parties’ shares or sale proceeds.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Here, the parties are co-owners of a home, and one owner has been paying the mortgage and other carrying costs alone for several years. Under North Carolina law, those payments may support a contribution claim if they were actual costs of preserving the property, such as acquisition-loan payments, taxes, insurance, or needed repairs. If the parties resolve the matter through a refinance and buyout instead of pushing the case forward, they can still use the same contribution principles to negotiate a credit against the buyout amount or remaining balance.

If the claimed payments include property taxes, North Carolina places a specific limit on recovery in the partition case: taxes paid during the 10 years before the partition petition, plus legal-rate interest. Mortgage principal and interest on the loan used to acquire the property can also count as carrying costs, but the claim should be documented carefully so the court or the settlement papers can separate qualifying payments from nonqualifying personal expenses.

North Carolina’s partition statutes also allow the court to adjust shares through owelty, which is a balancing payment used when one side receives property of greater value. That matters in a buyout setting because a co-owner keeping the home may agree to pay one amount up front and secure the rest with a deed of trust, while also receiving a credit for proven carrying costs already paid. In practice, that kind of structure often mirrors what the court could do if the case continued.

Process & Timing

  1. Who files: the co-owner seeking partition or asserting contribution. Where: the partition proceeding in the North Carolina clerk of superior court for the county where the real property is located. What: a partition petition and, if needed, an application or claim asking the court to credit qualifying carrying costs and tax payments. When: in a partition sale, the contribution claim may be asserted at any time during the partition proceeding; for property taxes, the statute limits recovery to amounts paid in the 10 years before the partition petition.
  2. Next, the parties exchange payment records, loan statements, tax receipts, insurance records, and repair proof so the court or the parties can determine which amounts qualify as carrying costs and what share should be credited.
  3. Final step: the matter ends either with a court order adjusting shares or sale proceeds, or with a settlement that sets the buyout terms, credit amount, and any remaining balance secured by a deed of trust.

Exceptions & Pitfalls

  • Not every payment tied to the home will qualify. North Carolina focuses on actual carrying costs that preserve value or ownership interests, not every household or personal expense connected to living there.
  • Poor records can weaken the claim. Bank statements, mortgage histories, tax bills, insurance invoices, and repair receipts usually matter because the court must sort out what was actually paid and why.
  • Occupancy and offset issues can affect the final numbers. If one co-owner had sole use of the property, the other side may argue for an offset depending on the facts and the claims raised.
  • Waiting too long to raise the issue can create problems in settlement leverage and proof, even though a partition-sale contribution claim may be asserted during the proceeding.
  • If the parties settle with a refinance and deferred balance, the deed, note, and deed of trust should match the agreed credit and payment terms so the dispute does not continue in a different form.

Conclusion

In North Carolina, a co-owner can often get credit for mortgage payments and other carrying costs paid alone on a co-owned home by asserting a contribution claim in the partition proceeding. The key points are that the payments must qualify as carrying costs, the amounts must be documented, and property tax claims are limited to the 10 years before the partition petition. The next step is to file or assert the contribution claim in the partition case and support it with payment records.

Talk to a Partition Action Attorney

If a co-owned home dispute involves a buyout, refinance, or a claim for credit for mortgage and carrying costs paid by one owner, our firm has experienced attorneys who can help explain the available options and timing under North Carolina law. Call us today at 919-341-7055. Related issues often come up when the mortgage is only in one co-owner’s name but the deed is in both names or when someone wants to keep a co-owned home and remove the other owner from the deed and mortgage.

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
Last Updated: April 26, 2026

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.