Dec32025
Partition Action Q&A Series

What proof should I gather to show I paid the down payment and all mortgage payments so I can be reimbursed before splitting the net? – North Carolina

Short Answer

Under North Carolina law, a cotenant who pays the property’s carrying costs—such as the down payment, mortgage payments, taxes, insurance, and necessary repairs—may ask the court in a partition case to credit or reimburse those amounts before the remaining net sale proceeds are divided. The strongest proof is clear, dated paper trails tying funds from the paying cotenant directly to the purchase and ongoing payments. Courts look for organized, third-party records more than personal statements or informal understandings.

Understanding the Problem

The specific issue is: in a North Carolina partition or negotiated sale of jointly owned real estate, what evidence can a cotenant gather to prove that cotenant alone funded the down payment and all mortgage payments so that cotenant can seek reimbursement or a credit before splitting the net sale proceeds. The focus stays on proving contributions to purchase and carrying costs between cotenants, not broader property or family disputes.

Apply the Law

North Carolina statutes give a cotenant the right, in a partition proceeding, to seek contribution or credits for “carrying costs” paid toward jointly owned real estate. Carrying costs include loan payments used to acquire the property, property taxes, homeowner’s insurance, and repairs. The main forum is a partition action in the superior court of the county where the property lies, and contribution claims should be raised during that proceeding so the court can adjust the shares of the net sale proceeds.

Key Requirements

  • Existence of cotenancy: The parties must both hold legal title to the property (for example, as joint tenants or tenants in common) when asking for contribution or credits.
  • Qualifying payments: The paying cotenant must have made actual payments toward recognized carrying costs, such as the down payment, mortgage used to buy the property, taxes, insurance, and necessary repairs.
  • Proof and timing of payments: The cotenant must be able to show, with credible records, when and how those payments were made, and must assert the contribution claim within the partition case while it is pending.

What the Statutes Say

Analysis

Apply the Rule to the Facts: In the facts given, one cotenant says that cotenant paid 100% of the down payment and every mortgage payment, while the other cotenant contributed nothing but expects half the net proceeds. In a North Carolina partition case, that paying cotenant could claim contribution for carrying costs under § 46A-27 and related reimbursement rights under § 41-86, asking the court to credit those payments before splitting the remaining net. The practical challenge is proving that each payment truly came from that cotenant and was not a joint contribution.

Process & Timing

  1. Who files: A cotenant files a partition petition. Where: Superior Court in the North Carolina county where the property is located. What: A verified partition petition under Chapter 46A that (a) describes the property and ownership and (b) asks the court to recognize and credit the cotenant’s contributions to down payment and carrying costs. When: The contribution claim should be raised in the petition or by motion during the partition case; for property taxes, contribution is generally limited to the 10 years before filing under § 46A-27.
  2. After the petition is filed and all cotenants are served, the court decides whether to order an actual partition or a partition sale. In a partition sale, the court can direct that the commissioner or clerk handle the sale and later file an accounting of proceeds and proposed distribution that reflects any credits for carrying costs.
  3. At the end of the proceeding, the court enters an order approving the sale, addressing contributions, and directing how to disburse the net sale proceeds. The order should show what amount is credited or reimbursed to the paying cotenant before dividing the remainder.

Exceptions & Pitfalls

  • If the paying cotenant had exclusive possession of the home for an extended period, reimbursement for some categories (like interest on encumbrances) may be reduced or denied under § 41-86.
  • Courts give little weight to bare statements or informal agreements without documents. Missing bank records, cash payments without receipts, or mixing funds in joint accounts can weaken the claim.
  • Failing to organize evidence—such as not tying each bank transfer or check to a particular mortgage payment or closing cost—can make it hard for the court or a commissioner to match payments to the claimed credit.
  • Contribution rules for property taxes have lookback limits, and other liens or obligations may have their own rules and deadlines, so older payments may not all be recoverable.

Conclusion

To seek reimbursement in a North Carolina partition case before splitting net sale proceeds, a cotenant must show actual, traceable payments of the down payment and mortgage and other recognized carrying costs. Courts rely on clear records like closing statements, bank statements, cancelled checks, and lender histories rather than informal understandings. A practical next step is to file (or respond in) a partition action in superior court and present an organized contribution claim with supporting documents while the case is still pending.

Talk to a Partition Action Attorney

If a jointly owned North Carolina home is being sold and one cotenant paid the down payment and mortgage while another demands an equal split, our firm has experienced attorneys who can help explain contribution rights, evaluate available proof, and plan a partition or settlement strategy. 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 any specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If there is 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.