NOTICE OF INTENT TO COMMENCE PARTITION PROCEEDINGS

[Sovereign]

Colorado, my ex had a lawyer and sent me a letter today, May 21, headed with NOTICE OF INTENT TO COMMENCE PARTITION PROCEEDINGS. The letter goes on to say they will be filling it with the local county court June 7.

We co-signed a mortgage in 2018. She moved out this time last year and wants me to sell it. She hasn't paid since last year. I do not wish to sell it.

What options do I have?

 

[Taxing Matters]

Colorado, my ex had a lawyer and sent me a letter today, May 21, headed with NOTICE OF INTENT TO COMMENCE PARTITION PROCEEDINGS. The letter goes on to say they will be filling it with the local county court June 7.

We co-signed a mortgage in 2018. She moved out this time last year and wants me to sell it. She hasn't paid since last year. I do not wish to sell it.

What options do I have?

Were you ever married? If so, do you have a divorce decree? If you do, what does it say about what happens with the house? If there is no court order then realistically you have the following options:

• Agree to sell the house and split the proceeds;
• Buy out her share of the house, which would likely mean refinancing the mortgage solely in your name and paying her her share of the equity;
• file for bankruptcy; or
• If you are married and no divorce action has been started, see a lawyer about seeking a divorce and getting an order in the divorce decree regarding the split of assets.

I suggest you see a Colorado lawyer to look over your deed, mortgage, any other liens on the property, and any divorce documents that may exist for advice on what's the best route to take given your current financial situation. One thing that you very likely will be unable to do is successfully oppose the partition petition. You might be able to slow it down a bit, but in the end courts typically grant partition actions to allow the owner who wants out to get out of owning the property. The problem is that partition sales usually don't fetch anything near the real value of the home. Her lawyer probably knows that, and is hoping that you do too so that you'll negotiate with him on how to get her the money for her share of the house. Spending money actually litigating a partition action pretty much ends up being money tossed down the drain, both in legal fees and in the impact on the price at the partition sale.

 

[Sovereign]

We're not married. So if I agreed to sell the house, we'd have to come to that agreement before her lawyer submits the partition, I take it.

 

[Taxing Matters]

We're not married. So if I agreed to sell the house, we'd have to come to that agreement before her lawyer submits the partition, I take it.

You can come to agreement on this at any time before the judge rules on the partition petition. But the longer into the litigation you get, the more money you spend on lawyers and court costs, which reduces the final amount you and the ex will get in your pockets once you do reach agreement (or have the judge rule on it). That creates some incentive to come to agreement sooner rather than later.

 

[LdiJ]

I am going to add something that hasn't been fully addressed. One way or another you are going to have to find a way to remove her from the mortgage and buy out her share of the equity. There is no possible outcome where you will be able to keep the house with her on the mortgage. That means either refinancing to get her off the mortgage and buy out her share, or selling the house to someone else and splitting the proceeds. There really isn't any other option.

Had she not already gotten an attorney involved you might have stood a chance at just refinancing to remove her from the mortgage with an agreement to pay out her share of the equity over time, but at this point her attorney is going to strongly advise against anything like that because he or she is probably supposed to be paid out of your ex's share of the proceeds.

 

[adjusterjack]

We're not married. So if I agreed to sell the house, we'd have to come to that agreement before her lawyer submits the partition, I take it.

All you have to agree on is listing price and a realtor, then list it, get it sold, split the proceeds.

Or, refinance into your name and cash her out. After 6 years there should be enough equity in the house to accomplish that.

 

[zddoodah]

We co-signed a mortgage in 2018.

Who's on title? Both of you? Assuming the answer is yes, how do you hold joint title? Tenants in common? Joint tenants?

She moved out this time last year and wants me to sell it. She hasn't paid since last year. I do not wish to sell it.

Assuming her name is on title, that seems reasonable. Since you don't want to sell, have you proposed buying out her interest in the property and refinancing only in your name instead of selling it? If not, why not?

What options do I have?

I don't really understand the question. Nothing has happened that requires you to do anything. "I'll file a lawsuit in three weeks" is a largely meaningless statement. If/when she files a partition action, then you'll need to respond and should engage legal counsel. You could do that now so that you're better prepared if/when the suit is filed.