45% of entrepreneurs are stressed, and for good reason. Making your business dreams come true is no easy feat, and it’s especially hard to do on your own.
Bringing in business partners is a wise move in many cases. However, good relationships don’t always last, and it’s easy to get into disputes about who deserves what. If this happens, then a partition action may be in your best interest.
What is a partition action? And what else should you know? Read on to find out.
What Is a Partition Action?
A partition action is a legal procedure used to divide or separate jointly owned property among its owners. It typically happens when co-owners of a property can’t agree on how to manage or use the property. It can also happen when one or more co-owners wish to sell their share but the others don’t agree.
The purpose of a partition action is to bring a fair and equitable resolution to disputes by physically dividing the property, selling it, or buying out the shares of the other owners. While the specific process and laws surrounding partition actions vary by jurisdiction, generally, they involve filing a lawsuit in court.
Who Can File a Partition Action?
Basically, any co-owner of a jointly owned property can file a partition action. This means that if multiple individuals or entities share property ownership, any one of them has the legal right to initiate a partition action.
Do note that in some jurisdictions, certain conditions or restrictions may apply. For example, some may require that the co-owner seeking the partition action have a legitimate interest in the property. Or other jurisdictions may require them to demonstrate that they’ve made efforts to resolve the dispute before resorting to legal action.
In addition, if there are specific agreements or contracts governing the ownership of the property (such as partnership or co-ownership agreements), these documents may outline the procedures and requirements for initiating a partition action.
How Long Does a Partition Action Take?
In some straightforward cases where the parties are cooperative and there are no significant legal or factual disputes, a partition action may be resolved quickly, such as within a few months to a year. Otherwise, complex cases that involve disputes, disagreements, and delays in court proceedings can last over a year.
So as you can guess, the duration of a partition action can vary depending on several factors. The main ones are:
- The legal procedures in the jurisdiction where the partition action is filed
- The process of discovery and valuation
- The caseload and efficiency of the court system
- Negotiations and settlements
Divide Your Property Into Equal Portions
The answer to the question, “What is a partition action?” is that it’s a legal move to split property equally between co-owners. Typically speaking, any co-owner can bring one about, so if you co-own a business and would like to divide it, this is a route to consider.
Don’t try to do this alone though. Take time to research legal counsel to ensure that the case goes your way.
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