Jan212026
Partition Action Q&A Series

What happens if one co-owner has been paying the mortgage, taxes, or repairs during a partition case? – North Carolina

Short Answer

In North Carolina, a co-owner (cotenant) who has been paying the property’s “carrying costs” during a partition case can ask the court for a credit or reimbursement (called contribution) from the other co-owners. Carrying costs can include mortgage payments, property taxes, insurance, and repairs. The court can account for these payments when dividing the property or when dividing the sale proceeds, but the timing and amount can depend on issues like exclusive possession and proof of what was paid.

Understanding the Problem

In a North Carolina partition case, can one co-owner get money back (or a larger share of proceeds) because that co-owner has been paying the mortgage, property taxes, or repair bills while the property remained jointly owned? The decision point is whether those payments qualify for contribution and how the court will account for them when the property is physically divided or sold and the proceeds are distributed. The question often comes up when one co-owner has carried the property costs for months or years while the other co-owner did not contribute.

Apply the Law

North Carolina’s partition statutes allow a cotenant to seek contribution for certain expenses that preserve the property and protect everyone’s ownership interests. In a partition, the court can adjust the final division (or the distribution of sale proceeds) to reflect approved credits for carrying costs and certain improvements. These issues are typically handled in the same partition proceeding in the county where the property is located, and the cotenant seeking credit usually must file an application/motion in the case and support it with documentation.

Key Requirements

  • Qualifying expense (carrying cost vs. improvement): Mortgage payments, property taxes, insurance, and repairs generally fall under “carrying costs.” Improvements may be treated differently and are often limited to the lesser of cost or value added.
  • Proof and reasonableness: The cotenant requesting contribution should be able to show what was paid, when it was paid, and that the expense actually related to preserving the property (not personal upgrades or unrelated costs).
  • Proper request in the partition case (and timing): The request must be raised in the partition proceeding so the court (and, in an actual partition, the commissioners) can account for it when allocating shares or distributing sale proceeds.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts provided do not describe who paid which expenses or who lived in the property, so the key issue is procedural: in a North Carolina partition matter, the cotenant who paid the mortgage, taxes, insurance, or repairs generally should raise a contribution request in the case and be prepared to prove the payments. If the payments qualify as carrying costs, the court can credit those amounts when it divides the property or distributes sale proceeds. If the payments were for improvements, the claim is typically limited to the lesser of the cost or the value added as of the date the partition case started.

Process & Timing

  1. Who files: The cotenant seeking credit/reimbursement. Where: The partition case in the county where the real property is located (typically in North Carolina Superior Court). What: An application/motion in the partition proceeding requesting contribution/credits, supported by records (loan statements, tax receipts, insurance invoices, repair invoices, proof of payment). When: In an actual partition, the statute allows the request any time before the commissioners file their report; in a partition sale, the request can be made during the partition proceeding.
  2. How the court evaluates the request: The court looks at whether the expense fits within carrying costs or improvements, whether the amounts are supported by evidence, and whether any statutory limits apply (for example, limits tied to exclusive possession or the lookback period for property taxes).
  3. How it affects the outcome: If approved, the credit is typically handled as an adjustment when the property is allocated (actual partition) or as an adjustment to the distribution of sale proceeds (partition by sale). In an actual partition, the commissioners’ allocation and any owelty can be adjusted to reflect the contribution order.

Exceptions & Pitfalls

  • Exclusive possession issues: Some reimbursement rights can be limited for periods when the paying cotenant had exclusive possession of the property, particularly for interest on an encumbrance and (in some situations) necessary repairs.
  • Repairs vs. improvements: Necessary repairs that preserve value are treated differently from upgrades. Improvements are commonly capped at the lesser of cost or value added (measured as of the date the partition case began), and allocation of the improved portion may be an issue in an actual partition.
  • Documentation gaps: Courts typically require proof. Missing invoices, unclear payment records, cash payments without receipts, or mixing personal expenses with property expenses can reduce or defeat a claim for contribution.
  • Waiting too long to raise the issue: In an actual partition, the request should be made before the commissioners file their report. Delays can make it harder to get the credit built into the final allocation.

Conclusion

In North Carolina partition cases, a co-owner who has been paying the mortgage, taxes, insurance, or repairs can ask the court for contribution so the final division (or sale proceeds) reflects those carrying costs. Improvements may also be credited, but usually only up to the lesser of cost or value added as of the date the case began. A key limit is that property-tax contribution generally reaches back only 10 years before filing. The next step is to file a contribution request in the partition case with clear proof of payment.

Talk to a Partition Action Attorney

If a co-owner has been paying the mortgage, taxes, or repairs and a partition case is pending, an attorney can help present a clear contribution request and protect timelines for raising credits in the 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.