The need for legally entering into a Partition suite arises when there has to be a distribution of shared ownership of property among the potential shareholders, whether they are family members and relatives.
A partition, by simple definition, is a division of assets owned collectively by either family members or relatives so that each person gets a share and becomes the owner of the share. The division is done as per the shares to which each of the members is authorized according to law. While undergoing the same, keep in mind the following aspects:
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When shared ownership of property is in family members/relatives
The partition can be performed by mutual consent or via court:
- If division is opted by mutual consent, it is executed by the family/relatives themselves. It is to be noted that the act of division should be registered at the office of the sub-registrar of the place where the estate is located. More than one person may jointly own the assets.
- The mode of partition is different when the division of shared ownership of property is not desired by all and only one or more of the members want the estate to be distributed. In such a scenario the suit is filed in the appropriate court of law. The deed must be executed on a stamp paper and drafted clearly and explicitly. The share of each person should also be mentioned specifically.
Explicit Partition Deed:
- A partition deed makes new owners of the assets, and it should be listed at the sub registrar’s office to make it legal and obligatory.
- The deed must mention the date from which the distribution is potent.
- The names of the people of the family and relatives with their respective shares should be explicitly declared.
Distributed assets get a new ownership:
- The shared ownership of property is distributed as decided and each share is subject to a new ownership.
- Each shareholder gives up his/her interest in the property in favor of other shareholders.
- Therefore, a division is an aggregate of surrender and transfer of individual rights in the estate.
- The transferee can deal with the assets in any way he/she shall desire. It can be sold, transferred, exchanged, gifted, etc. by the individual just as an absolute owner would.
Inheritance law plays a significant role in the Partition of Asset:
- Different rules can be applied for separation of belongings.
- However, distribution of shared ownership of property is also subject to the laws of inheritance applicable to a particular person.
In this competitive world, everyone wants individual ownership of everything one owns. With increasing nuclear families, the trend of shared ownership is gradually disappearing. The distribution of any property, whether among co-owners or family members, can be done either by gaining mutual consent or by filing a case in an appropriate court. It is, however, preferred to solve such matters mutually without dragging the case to the court of law.