Co-ownership and joint ownership: rights and procedures for dividing ideal and undetermined shares

Co-ownership and joint ownership (e.g., spouses in common property) represent a legal relationship in which ownership rights to a property are shared among multiple individuals. In co-ownership, ownership is divided into ideal shares, while joint ownership involves common ownership where shares are not determined. The provisions of the laws relating to co-ownership generally apply to joint ownership, unless otherwise specified.

The division of co-owned property can be voluntary, where co-owners decide to survey the land and divide the shares. Alternatively, it can be forced and determined by the court upon the request of any co-owner, regardless of opposition from other co-owners.

The law recognizes the right of each co-owner to demand the division of co-owned property, which can be done in two ways: through physical or civil division (selling the property and distributing the proceeds among the co-owners according to their shares).

For legal advice and representation in the division of co-owned or jointly owned property, contact attorney Jurij Kutnjak and ensure you choose the right option for your case.

Division of Co-Owned Property: Physical Division and Resolution of Disputes in Non-Litigious and Litigious Proceedings

If the nature of the property allows it or the property is physically divisible, physical division of co-owned property takes precedence over civil division. In the case of real estate (e.g., divisible land), this means that co-owners can divide or separate the land by a contract on the division of co-owned property, where each co-owner receives a portion of the property proportionate to their ideal share. Disputes may arise among co-owners regarding whether the co-ownership should be divided or, for example, which part should belong to each co-owner. In case of a dispute concerning the division of co-owned property, each co-owner has the right to request the division to be carried out by the court in non-litigious proceedings. If disputes arise among co-owners regarding investments, the extent of shares, etc., they are referred to litigation proceedings, and it is necessary to assert these entitlements and claims through a lawsuit in regular litigation proceedings.

It is also possible to divide co-owned property in a way that assigns the entire property to one of the co-owners, who is then obliged, by court decision, to pay the value of the shares of the other co-owners within a specified period. In this type of division, the petitioner must demonstrate a stronger legal interest or entitlement to be awarded the entire property.

For legal advice and representation in the process of physically dividing real estate, contact attorney Jurij Kutnjak and authorize them to file a proposal for the division and separation of co-owned or jointly owned property.

Division of Co-Owned Property: Civil Division, Auction Sales, and Enforcement Proceedings

If the co-owned property is not physically divisible or if the division would result in disproportionate costs, only civil division remains, which involves selling the property at a public auction and distributing the received proceeds among the co-owners in proportion to their co-ownership shares. The court also decides on this matter in non-litigious proceedings. The value of the real estate must be assessed in the procedure by an authorized judicial appraiser for real estate. If all co-owners agree to the sale and payment of co-ownership shares after the issuance of the division decision, it can be carried out according to the rules of non-litigious proceedings. The starting price for the first auction sale is determined based on the value established in the non-litigious proceedings (i.e., market value).

Otherwise, each co-owner has the right to propose that the property be sold under enforcement proceedings, which means that the property will be auctioned, starting with an initial price lower than that determined in the division decision (the first starting price is 70% of the established value in the non-litigious proceedings).

There is no guarantee that the auction sale will be successful. If the property cannot be sold at a public auction, the co-ownership will remain undivided, and co-owners retain the right to request a new court-ordered sale at a public auction (until the property is sold).

The division of real estate through court proceedings is usually a lengthy and multi-phase process for which I suggest not attempting it on your own without proper legal assistance from an attorney. For legal advice and representation in the division of real estate proceedings, contact attorney Jurij Kutnjak and ensure you choose the right option for your case.