Partition of real estate; Or, breaking up is (not) hard to do

Under the common law, joint owners of real estate have the right to seek pa rtition, or physical division, of the land. However, modern statutes also a llow courts to order a sale of the land, with proportionate division of the proceeds, if the loss from division is substantial. Although forced sale c an be beneficial by preventing inefficient fragmentation of the land, it en tails a cost by depriving nonconsenting owners of any value of their share of the land in excess of its market value. This paper develops an economic standard for choosing between partition and forced sale based on the object ive of maximizing the aggregate value of the land. The basic trade-off is b etween the benefits of forced sale when scale economies are present and pro tection of subjective value under partition. A review of the case law sugge sts that courts have developed a standard that reflects this trade-off.