Partition Action Q&A Series

Is there a legal way to recover the repair contribution my former partner made on a now-worthless asset? – North Carolina

Short Answer

Yes. In North Carolina, co-owners can file a partition special proceeding with the Clerk of Superior Court to force a sale or award of a jointly owned boat and to sort out credits for repairs and carrying costs. Courts usually handle reimbursement through an accounting against sale proceeds or by adjusting how title is awarded. If the boat is truly worthless and produces no proceeds, the repair payor typically is not reimbursed unless they also win a separate claim (like unjust enrichment) within the applicable time limits.

Understanding the Problem

In North Carolina, you and a former partner co-own a boat. You want to know if you can legally address their request to be “paid back” for a major repair before they will sign over title now that the boat is effectively worthless. Can you ask the Clerk of Superior Court to resolve title, order a sale or award, and settle who owes what?

Apply the Law

North Carolina allows any co-owner of personal property (like a boat) to bring a partition special proceeding before the Clerk of Superior Court. The clerk can order a sale when a fair physical division is impractical and then credit or charge co-owners for necessary repairs, preservation expenses, fees, or exclusive use through an accounting. As a rule, reimbursements are paid from sale proceeds or reflected in how the property is awarded. If there are no proceeds because the asset has little or no value, personal cash reimbursements are uncommon unless supported by an additional civil claim (for example, unjust enrichment) brought within the statute of limitations. The clerk’s office is the forum for the partition; related civil claims are filed in Superior Court.

Key Requirements

  • Co-ownership: You and the other person both hold title to the boat; that shared ownership triggers the right to partition.
  • Sale or award: If the boat cannot be fairly divided, the clerk can order a sale or award title to one owner with appropriate adjustments.
  • Accounting/credits: The court may credit necessary, value‑preserving repairs, storage, insurance, and similar carrying costs against proceeds or adjust distributions; offsets may apply for exclusive use.
  • Proceeds first: Reimbursement usually comes from sale proceeds or through value adjustments, not by ordering one owner to write a personal check absent a separate civil claim.
  • Deadlines: Partition has no fixed filing deadline while co‑ownership exists, but stand‑alone claims (like unjust enrichment or conversion) generally have a three‑year limit.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You and your former partner co-own the boat, so you can file a partition. Because a boat cannot be fairly split, the clerk can order a sale or award title to one owner and adjust for credits. The partner’s repair contribution could be credited, but if the boat is now worthless and yields no proceeds, there may be nothing to reimburse from—making a separate civil claim the only path to a personal payback. Your ongoing fees (storage, registration, insurance) can also be credited or offset in the accounting.

Process & Timing

  1. Who files: Any co-owner. Where: File a partition special proceeding with the Clerk of Superior Court in the North Carolina county where an owner resides or where the boat is kept. What: A verified petition for partition requesting sale or award of the boat and an accounting of repairs and carrying costs. When: No fixed deadline for partition while co‑ownership continues; file promptly to stop mounting fees.
  2. The clerk issues process and holds a hearing. If division is impractical, the clerk may appoint a commissioner to sell the boat or recommend awarding title to one owner with equitable adjustments. Timeframes vary by county; expect weeks to a few months.
  3. Sale closes or the court enters an order awarding title. The commissioner reports the sale; the clerk confirms and distributes proceeds after credits/offsets. If there are no proceeds, the order can vest title and still resolve credits on paper (often resulting in no cash reimbursement).

Exceptions & Pitfalls

  • Repairs vs. upgrades: Only necessary, value‑preserving expenses typically qualify for credits; optional upgrades may not.
  • No proceeds, no payback: If the boat sells for little or nothing, credits often cannot be converted into a personal judgment without a separate civil claim.
  • Offsets for use/costs: Exclusive use by one owner or one-sided payment of storage, insurance, or taxes can reduce or cancel repair credits.
  • Self-help risks: Retitling or disposing of a jointly titled boat without agreement or court order can trigger claims; use the court process.
  • Venue and notice: Improper service or filing in the wrong county can delay or derail the proceeding.

Conclusion

Under North Carolina law, you can use a partition special proceeding to resolve a jointly owned boat when a co-owner demands reimbursement to sign over title. The clerk can order a sale or award title and apply credits for necessary repairs and carrying costs, usually from sale proceeds or by adjusting distributions. If the boat is worthless, reimbursement is unlikely without a separate civil claim. The next step is to file a verified partition petition with the Clerk of Superior Court.

Talk to a Partition Action Attorney

If you’re dealing with a co-owned boat, a reimbursement demand, and a now-worthless asset, 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.