Dec32025
Partition Action Q&A Series

If both of our names are on the deed but only I paid for the property, can a court award me a larger share or reimburse the down payment? – North Carolina

Short Answer

Under North Carolina law, when both parties are on the deed, each normally owns an equal share of the property. However, in a partition case the court can adjust how the net sale proceeds are divided by giving one co-owner credit for unequal contributions toward the property’s “carrying costs” (like the purchase loan, taxes, and insurance) and certain improvements. This usually means an adjustment in money, not a change in the deeded ownership share.

Understanding the Problem

The question here is whether a North Carolina court can recognize one co-owner’s greater financial contributions when both names appear on the deed to a home. In a typical scenario, two people take title as co-owners, but one pays the entire down payment and all mortgage payments, while the other pays nothing. When the relationship ends and the home is sold or one party files a partition action, the paying co-owner wants a larger share of the sale proceeds or reimbursement of the down payment. The core issue is how North Carolina partition and co-ownership rules treat unequal contributions when legal title itself is equal.

Apply the Law

North Carolina treats co-owners on the deed (usually as tenants in common if unmarried) as owning undivided shares, often presumed equal if the deed is silent. In a partition action in Superior Court, the judge can order either an in-kind division or a partition sale and can adjust the distribution of net sale proceeds to account for one co-owner paying more than a fair share of carrying costs and qualifying improvements. There are specific procedures and timing rules for asserting these contribution rights during the partition case.

Key Requirements

  • Co-ownership status: Both parties must hold an ownership interest in the property under North Carolina law (often as tenants in common when unmarried co-owners are listed on the deed).
  • Qualifying contributions: The paying co-owner must show actual payments of recognized “carrying costs” (such as mortgage payments, taxes, insurance, and necessary repairs) or qualifying improvements, and that those payments exceeded that co-owner’s proportionate share.
  • Proper assertion in partition: The contribution claim must be raised in the partition proceeding within the time the statutes allow, so the court can adjust shares or net proceeds before finalizing the division or sale.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the described situation, both names are on the deed, so each has an ownership interest even if only one paid the down payment and mortgage. In a North Carolina partition action, the paying co-owner can ask the court to credit those mortgage payments and other carrying costs under the contribution rules so that the net sale proceeds reflect those unequal payments. Whether the original down payment qualifies depends on how it was structured and documented, but ongoing payments on the purchase loan, taxes, insurance, and qualifying repairs are squarely within the statutes. The court will not usually rewrite the deeded ownership percentages, but it can and often does adjust the money each party receives at closing.

Process & Timing

  1. Who files: A co-owner who wants the property sold or divided, and who seeks credit for greater contributions, typically files a partition petition in the North Carolina Superior Court for the county where the property lies. The filing includes a petition for partition (actual partition or sale in lieu of partition) and a request for contribution/credits under the relevant statutes, supported by documentation of payments.
  2. The court determines whether the property can be fairly divided in kind or should be sold, and appoints commissioners if needed. During this period, the contributing co-owner must formally assert the claim for contribution and provide evidence (such as closing documents, loan statements, tax bills, and proof of payment). The statutes allow the contribution claim to be raised any time during a partition sale proceeding, but it must be resolved before the court approves the final distribution.
  3. Once the property is divided or sold, the court (or commissioners, subject to court approval) applies any contribution credits, owelty, or adjustments, then issues an order that sets each co-owner’s share of the net sale proceeds. The closing attorney or clerk disburses sale funds according to that order, which effectively reimburses or partially reimburses the paying co-owner before equal division of any remaining balance.

Exceptions & Pitfalls

  • Courts generally start from the deeded ownership, so requesting an adjustment in proceeds is more realistic than expecting the court to rewrite the recorded ownership percentages.
  • Some categories of payments, like purely voluntary upgrades or improvements that do not add measurable value, may not be fully credited and can be limited to the lesser of cost or value added.
  • If one co-owner had exclusive use of the property for a time, that can affect contribution and any offset for fair rental value, so use and occupancy evidence matters.
  • Failure to document payments (for example, paying large sums in cash with no records) makes it much harder to prove contribution and can reduce or eliminate reimbursement.
  • There are time limits on how far back certain tax-related contributions can be claimed, and local practice can differ on how judges handle contested contribution claims.

Conclusion

In North Carolina, when both parties are on the deed, ownership is generally equal, but a court in a partition action can use contribution and credit rules to give the paying co-owner a larger share of the net sale proceeds to reflect greater mortgage, tax, insurance, and qualifying repair or improvement payments. That adjustment usually happens through money credits rather than changing the recorded ownership percentages. The key step is to file a partition action in the proper Superior Court and timely assert and document the contribution claim within that case.

Talk to a Partition Action Attorney

If a co-owned North Carolina property is being sold and one owner contributed most or all of the money, our firm has experienced attorneys who can help explain partition options, contribution claims, and realistic settlement strategies. 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.