Partition Action Q&A Series

Can I recoup expenses when the other co-owner refuses to participate? – North Carolina

Short Answer

Yes. In North Carolina, a co-owner can file a partition special proceeding and ask the Clerk of Superior Court to order a sale and an accounting that credits each owner for necessary costs (like storage, insurance, registration, and necessary repairs). The court can deduct validated contributions from each owner’s share before distributing sale proceeds. Upgrades beyond necessary repairs are usually credited only to the extent they increased the property’s value.

Understanding the Problem

You’re asking whether, in North Carolina, you can recover your out-of-pocket costs when the other co-owner won’t cooperate. You and a former partner both hold title to a boat. You want to know if you can get reimbursed for fees and work you carried, even though the other owner refuses to sign over title without repayment.

Apply the Law

North Carolina law lets any co-owner of personal property (like a boat) start a partition special proceeding before the Clerk of Superior Court. If the item cannot be fairly divided, the court can order a sale instead of physical division. In the same case, the court can conduct an accounting and adjust equities—crediting an owner who paid necessary carrying costs or repairs, and offsetting where appropriate. The main forum is the Clerk of Superior Court in the proper county. While there is no fixed deadline to seek partition while co-ownership continues, timing affects proof and practical recovery.

Key Requirements

  • Co-ownership: You and the other person both hold title or ownership in the property.
  • Indivisibility: The property cannot be fairly split “in kind” (a single boat), so a sale is appropriate.
  • Accounting request: Ask the court to credit you for necessary carrying costs (e.g., storage, insurance, registration) and necessary repairs.
  • Proof of payments: Provide receipts, invoices, and proof the expenses preserved the property or maintained its value.
  • Improvements vs. repairs: Upgrades beyond necessary repairs are typically credited only up to any increase they caused in value—not automatically at full cost.
  • Service and participation: Properly serve the co-owner; the case can proceed even if they refuse to cooperate.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You and your former partner co-own a boat and cannot divide it in kind, so a sale is the likely remedy. You can ask the Clerk to credit you for ongoing fees (like storage and registration) and for any necessary repairs that preserved the boat. The former partner may seek credit for their repair contribution, but upgrades generally receive credit only up to any increase in value. If the boat is now essentially worthless, recovery is typically limited to credits against shares of any sale proceeds.

Process & Timing

  1. Who files: Any co-owner. Where: Clerk of Superior Court in the North Carolina county with proper venue (often where the property is located or where a co-owner resides). What: A verified petition for partition of personal property with a request for sale in lieu of partition and an accounting/credits. When: You may file at any time while co-ownership exists.
  2. After filing, serve the co-owner. The Clerk schedules a hearing. If the boat cannot be divided fairly, the court can order a judicial sale. Counties vary on scheduling; expect weeks to a few months depending on the docket.
  3. Following sale, the Clerk reviews an accounting, applies allowed credits and offsets, and enters an order distributing net proceeds between the co-owners.

Exceptions & Pitfalls

  • Upgrades vs. necessary repairs: You must show expenses were necessary to preserve the boat; upgrades usually get credit only for proven value added.
  • Documentation gaps: Missing receipts, invoices, or proof of payment can reduce or defeat reimbursement.
  • Exclusive use: If one owner had exclusive use, the court may offset for reasonable rental value against that owner’s credits.
  • Limited proceeds: If the boat brings little at sale, reimbursement is generally limited to credits against the other owner’s share, not a separate money judgment.
  • Service/venue issues: Improper service or filing in the wrong county can delay the case.

Conclusion

Under North Carolina law, you can seek reimbursement through a partition special proceeding that asks for a sale and an accounting. The court can credit necessary carrying costs and repairs and may limit credits for upgrades to any actual increase in value. The practical next step is to file a verified petition for partition and sale with the Clerk of Superior Court and present receipts so the court can apply credits before distributing proceeds.

Talk to a Partition Action Attorney

If you’re dealing with a co-owned boat and an uncooperative co-owner, our firm has experienced attorneys who can help you understand your options and timelines. 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.