How to Resolve Joint Ownership Property Disputes: Litigation vs. Settlement

Introduction: Is Your Property Dispute Tearing Relationships Apart?

Assets in the form of property is one of the most secure investments in the current market. While many people wait to have enough savings for such an investment, others opt of for pooling in resources for the purchase. Joint owned property can stem from inheritance, collective purchase, or even from gifts. The question that is often asked in such scenario is what happens when co-owners disagree. The issue might involve relatives fighting over property or business partners in disagreement. You can either opt for litigation or settle it amicably. It is crucial to understand the process, associated risks, and benefits of both paths before making a move.

Common Causes of Property Disputes

Some of the most common root causes of property disputes are:

• Poorly executed will: When property is inherited without a clear will, conflict arises over ownership and partition.
• Disagreements: Any property dispute with family often stems from emotional ties and conflicting expectations.
• Partnership Conflict: A property shared with business partners may also become the source of conflict. Disagreement on administration or selling may be some of the reasons.
• Oral Agreements: Many people enter into oral or unenforceable contracts with vague terms to avoid complexity. This may cause misunderstandings in the future.

Litigation: The Legal Battlefield

Litigation inevitably involves taking the matter to court. It is often the most aggressive and confrontational strategy to secure your interest. It is bound by legal procedures and follows specific timelines. While it gives a certain level of finality, it also comes with downsides.

Here are some benefits of handling joint property disputes through the legal system:

• Final Decision: Court rulings are binding and must be followed.
• Legal Clarity: Complex matters, especially inherited property disputes, are explained and settled clearly.
• Fairness: If someone is being treated unfairly, the court protects their rights.

On the other hand, some prominent cons are:

• Takes Time: Property cases in court can last for years.
• High Costs: You may spend a lot on lawyers, court fees, and paperwork.
• Emotional Stress: A family dispute over property can become more bitter in court.
• Public Process: Court hearings are open, which may not suit private family matters.

Settlement: The Path of Collaboration

Settlement means solving property disputes without going to court. It usually happens through talks, mediation, or conciliation. More people now see out of court settlement as a smart way to handle property disputes.

Here are some benefits of settling outside court:

Pros of Settlement:

• Lower Costs: You save money on lawyers and court fees.
• Faster Results: Settlements can be done in a few weeks or months.
• Preserves Relationships: This matters a lot in a dispute with family over property.
• Private Process: All talks and deals stay confidential.
• Flexible Approach: People can agree on creative solutions that courts may not offer.

Cons of Settlement:

• No Precedent: Settlements don’t set legal clarity for future cases.
• Uneven Position: One side may feel forced to accept a bad deal.
• Hard to Enforce: If not written well, the deal may be tough to follow or prove.

Litigation v. Settlement

Choosing between going to court and settling outside depends on various factors:

• Relationship: If preserving the relationship is a priority, then settlement is often the better choice.
• Legal Determination: If the issue requires legal determination, then taking the matter to court may be required.
• Time: Settlement offers quick resolution, while litigation takes longer but goes deeper.
• Money Matters: Court cases cost more while settlement is usually cheaper.

It is often seen that the benefits of out of court settlement outweigh the downsides. The process becomes even more hassle free with the involvement of a skilled lawyer.

Key Considerations Before Choosing a Resolution Path

Before deciding between going to court and settling outside, it is important to think about the bigger picture.

• Your Goal: Assess whether you are looking to secure your financial interest or attempting a fair split of the property. Check if the priority is to keep the relationship intact.
• Legal Position: Understanding your rights and having the right documents can shape your decision.
• Emotional Impact: If the dispute with relatives over property is very stressful, settlement may be a gentler option.
• Time Factor: If you need a quick solution, out-of-court settlement is usually faster.

These points help you see if the benefits of out of court settlement are better than going through court. With good legal advice, you can make a smart and careful choice.

Legal Counsel’s Role

No matter what choose, be it settlement or going to court, getting the correct legal advice is very important. Lawyers play a crucial role in handling property disputes. They assist in:

• Clarifies Your Rights: This is especially helpful in inherited property dispute situations.
• Drafts Legal Documents: Ensures that any settlement reached is valid and enforceable.
• Handles Court Matters: If the case goes to litigation, the lawyer can represent you effectively.
• Mediate Negotiations: Helping parties reach fair compromises.

The right lawyer will facilitate resolution. Their guidance can easily diffuse a hostile situation into a collaborative solution.

Conclusion: Choose Wisely

The ultimate purpose of this exercise is to ensure that you choose the most appropriate option for yourself. Your goals may not always align with the method of resolution undertaken. In such a case, choosing the other alternative might be better.

Disputes over jointly owned property can be both stressful and expensive. Understanding the process of resolution, be it litigation or settlement, helps you makes an informed choice. While litigation offers finality and clarity, it is often time taking. Settlement, on the other hand, is faster, and helps preserve the relationships. Both solutions work well if you know what you want. Taking legal assistance in both solutions, makes the process more secure.

FAQs

Q1: What is the best way to resolve a dispute a property dispute with family?

Depending on what your priorities are, it is often recommended to opt for an out of court settlement in property disputes with family. It preserves relationships, reduces costs, and offers flexible solutions. However, if you want to resolve the dispute with more finality, then you may choose to opt for litigation.

Q2: Is it possible to resolve disputes related to inherited property without going to court?

Yes. Inheritance is a prominent source of property disputes within families. And in such situations, may people opt for settlement.

This Content originally posted on: https://www.ahlawatassociates.com/blog/joint-property-dispute-resolution-guide