South Dakota Partition Law

South Dakota Partition Action and Property Division Guide

When co-owners reach a stalemate, the only way to exit the joint ownership is a South Dakota partition action. Under Chapter 21-45 of the South Dakota Laws, any joint tenant can file a request for partition. This enables you to acquire your equity from the property, even if the other owner disagrees.

The Great Prejudice Rule

The law of the state of South Dakota favors partition in kind, in which the land is divided into separate lots. However, this situation is permitted only when the division does not cause significant prejudice.

Since you cannot easily divide a single-family house or a small commercial building, judges usually opt for a partition by sale instead, thereby ordering the property to be sold and the cash to be divided among the co-owners.

The Role of the Referee

The court appoints a Referee to investigate whether a physical split is possible. If they recommend a partition in kind, they provide a map. If they decide a partition by sale is the only logical path, their valuation sets the benchmark for the market price.

Farming vs. City Lots

A South Dakota partition action treats agricultural land differently from a town lot. For farm ground, the court analyzes whether a split ruins farming efficiency. In town, zoning laws often make a physical split impractical. If a division harms marketability, a sale becomes mandatory.

Equalizing Value with Owalty

Chapter 21-45 solves unequal land splits through “Owalty.” If you receive a more valuable slice of property, the court orders you to pay a sum to other owners. This payment balances the scales, ensuring everyone walks away with their fair share of the property’s worth.

Payout Adjustments and Credits

Before the amount is distributed, the court performs an accounting. You can claim credits for costs that maintain value, such as:

• Property taxes and insurance.
• Structural repairs.
• Mortgage principal payments.
• Improvements boost the sale price.

Legal Costs

If all the co-owners benefit from a lawyer’s efforts, the court can order the attorney’s fees to be paid first. They can deduct the amount from the sale proceeds. As a result, all co-owners bear the financial load equally.

In case of a property dispute, a South Dakota partition action is your best option. Contact our professionals today to protect your investment.