by Rob Quillin, Esq. and Adam B. McDonald, Esq.
If there are multiple heirs to the deceased owner of real estate and they can’t agree on what to do with the property, then any owner could file a partition lawsuit to resolve the disagreement. A partition is the separation or division of interests in land between multiple owners. Often, a lack of proper estate planning can lead to the division of family farms, or other real property, that once was the pride and joy of a family for generations—all by way of a partition action.
Tennessee provides a right to partition for any person having an interest in real property as tenants in common with others either by inheritance, for life, or for years. Tennessee divides partition actions into two separate types: partitions in kind and partitions by sale.
Partitions in kind are partitions in which a court physically divides the real property between co-tenants. On the other hand, partitions by sale occur when the court orders a sale of the property with the proceeds to be divided amongst the co-tenants. Tennessee law favors partitions in kind over partitions for sale.
Both partitions in kind and by sale can be messy and cause quarrels between family members and other cotenants. After all, family members often can’t agree on where to eat much less what portion—or price—of land is fair in a partition action.
Partition lawsuits can be very acrimonious cases as often there are deep-rooted emotions at play between siblings and family members that cloud their ability to make rational business decisions about dealing with the real property. The emotional element to these cases can be like divorce cases, except they might even involve multiple siblings.
So, if you find yourself in a partition action – or if you own property with others who won’t agree to a division or sale of property, you may need an experienced attorney to help you to navigate a partition lawsuit in the most efficient way possible.
In addition to the longstanding partition laws that have been in effect in Tennessee for many decades, the Tennessee legislature adopted a new partition statute in 2022 by enacting the Uniform Heirs Partition Property Act (“UHPPA”). The UHPPA applies to property held, at least in part, by individuals who acquired the property from a relative. Under the UHPPA, the tenant-in-common owners have the option, if able, to buyout the shares of the property from the other cotenants. The buyout option allows at least some of the property to stay in the family. However, navigating the buyout option, including finding a fair price for the property, can be difficult as the process is filled with technical legal requirements.
But, the good news is that not every piece of land—or every family farm—will be partitioned at the owner’s death. You can help prevent the possibility of a partition lawsuit for your family members by adequately planning for the transfer of your property at your death. Proper estate planning not only helps prevent family squabbles over your property, but also saves your family money and time in the long run by avoiding costly litigation over your property at your death.
Whether you want to plan to avoid future partitions of your property, or if you are involved in a situation where a partition may be filed or is pending, you may wish to contact us.