How to Divide Assets That Can’t Be Split

When a loved one passes away, settling their estate can be one of the most emotional and complicated experiences a family faces. Even when a will is in place, dividing property among heirs isn’t always simple — especially when the estate includes items that can’t easily be divided, such as a home, jewelry, artwork, or family heirlooms.

At Rockland Estate Planning, our probate and estate administration attorneys regularly help families navigate these difficult decisions with fairness, sensitivity, and a clear understanding of New York law.

Understanding Estate Administration in New York

Estate administration (also known as probate when there is a will) is the legal process of managing a deceased person’s assets, paying debts and taxes, and distributing what remains to beneficiaries. The steps typically include:

Appointing an executor or administrator — usually named in the will or appointed by the Surrogate’s Court.
Identifying, inventorying, and valuing assets — including real estate, investments, and personal property.
Paying debts, expenses, and any estate or inheritance taxes.
Distributing remaining assets according to the will or, if there is no will, under New York’s intestacy laws.

When the estate includes cash or easily divisible assets, this process is fairly straightforward. But when heirs must divide indivisible property — like a family home or heirloom jewelry — the situation requires careful planning and, often, professional legal guidance.

The Challenge of Indivisible Assets

Some property simply can’t be split into equal portions. Common examples include:

A home or vacation property left to multiple children
Valuable jewelry or family heirlooms with sentimental value
A closely held business or investment property
Collections such as art, antiques, or vehicles

These assets carry not only financial worth but also emotional weight — which can make division difficult and sometimes lead to family disputes if handled without structure or transparency.

Legal Options for Dividing Assets That Can’t Be Divided

1. Division by Value or Sentimental Preference

For smaller items such as jewelry, artwork, or collectibles, beneficiaries sometimes agree to divide based on equal value or personal significance. If multiple beneficiaries want the same item, they might use a rotation or drawing system, or agree that one heir takes the item while another receives property of equal appraised worth.
Professional appraisals can help ensure fairness — and prevent disputes later.

2. Sell the Asset and Divide the Proceeds

The most straightforward solution is to sell the property and divide the proceeds among the beneficiaries.
For example, if three siblings inherit a $600,000 home, selling the property and distributing $200,000 to each may be the fairest and cleanest resolution.
This option works best when all parties agree that maintaining the asset isn’t practical or desirable.

3. Buyout Among Heirs

If one heir wishes to keep a property, they can buy out the others’ shares at fair market value, based on a professional appraisal.
However, complications arise when multiple beneficiaries want to buy out the same property — for example, if two siblings both wish to keep the family home.

In that case, the executor or attorney will typically:

Obtain an independent appraisal to establish the property’s fair market value.
Invite written offers from the interested beneficiaries, specifying the proposed buyout amount and how they will finance it.
Evaluate the offers based on fairness, financial ability to complete the transaction, and any relevant terms in the will.

If the will expresses no preference, and both parties are financially capable, the beneficiaries can agree to a neutral tie-breaking process — such as sealed bids, mediation, or a random draw — to determine who will proceed with the buyout.

In some cases, co-ownership may be possible if both parties wish to maintain the property together. However, as explained below, shared ownership among heirs often creates significant long-term problems.

Your Rockland County probate attorney can facilitate this process, ensuring transparency and compliance with New York’s estate administration laws.

3. Shared or Co-Ownership Agreements

At first glance, co-owning inherited property may seem like a fair and practical solution — for example, when siblings decide to keep the family home together or share a vacation property. But in reality, co-ownership after inheritance often leads to disputes, legal complications, and financial strain. Some common problems include:

Unequal financial contributions: One heir may end up paying more for taxes, insurance, or maintenance, leading to resentment or demands for reimbursement.
Disagreements over use or management: One co-owner may want to sell or rent the property, while another wants to keep it for personal use.
Difficulty selling in the future: All owners must agree to sell, refinance, or make major decisions — and one party can effectively block the others.
Liability and credit risks: If one co-owner faces financial issues (such as bankruptcy or divorce), their share of the property could become entangled in outside legal claims.
Emotional strain: Co-ownership can prolong family tension and make closure after a loved one’s death more difficult.

While many times co-ownership arrangements are not a good long-term solution, it does work for some people. It’s advisable to create a formal co-ownership agreement outlining each person’s rights and responsibilities, detailing:

How expenses (taxes, insurance, maintenance) will be paid
How scheduling or usage will work
What happens if one party wants to sell their interest

In most cases, our attorneys at Rockland Estate Planning advise exploring alternatives — such as a buyout or sale — to provide clarity, fairness, and peace of mind for everyone involved. If it makes sense, we can help you design a co-ownership agreement that works for everyone.

5. Mediation for Family Disputes

When emotions run high, mediation can be a productive, cost-effective way to reach agreement. A neutral third party helps families discuss their concerns and work toward a solution that feels fair to everyone — without the expense and strain of going to court.

Why Work with a Probate Attorney

Estate administration involves more than paperwork — it requires balancing financial, emotional, and legal considerations. A knowledgeable Rockland County estate planning and probate lawyer can:

Guide executors through the Surrogate’s Court process
Arrange appraisals for real estate and valuables
Draft legal agreements among heirs
Ensure compliance with New York probate laws
Help prevent misunderstandings and potential litigation

At Rockland Estate Planning, our attorneys understand that every family’s situation is unique. We take the time to listen, explain your options clearly, and craft solutions that honor your loved one’s wishes while protecting your family’s relationships.

Final Thoughts

Dividing assets that can’t be divided is never easy, but with professional guidance and open communication, it can be done fairly and efficiently. Whether your loved one’s estate includes a home, business, or cherished heirlooms, the goal is always to preserve both fairness and family harmony.

If you’re an executor, administrator, or heir dealing with difficult estate assets, the team at Rockland Estate Planning is here to help. Our experienced probate attorneys serve clients throughout Rockland County and the greater Hudson Valley, providing compassionate, results-oriented estate administration services.

Contact Rockland Estate Planning today to schedule a confidential consultation and learn how we can help you navigate the estate process with clarity and confidence.