[Success Case] Protecting Building and Tenants Against Cousins' Property Partition Claim: Securing Full Ownership through Value Compensation

Inheritance is often a blessing, but it can also become a source of unexpected family legal battles. Today, we share a significant success case where our client defended their livelihood against a partition of property (공유물분할) claim filed by their cousins. Through a strategic legal approach, we helped the client secure full ownership of the land while protecting their building and tenants.

The client had inherited land from their father, which had originally belonged to their grandfather. Over the decades, the client built a commercial building on the land and established a stable rental business with numerous tenants.

However, a sudden legal storm arrived. Their cousins filed a lawsuit for the partition of the property, claiming that the original inheritance from the grandfather should have been a joint inheritance rather than a sole one by the client's father. While the client acknowledged the procedural issues from the past, they had one non-negotiable goal: "I must protect the building and the tenants at all costs."

In a partition of property lawsuit, the court can choose between three methods: physical partition (현물분할), partition by auction (경매분할), or partition by value compensation (가액보상). If the land were physically split or put up for auction, the building would likely face demolition, and the tenants would be forcibly evicted.

Law Firm Hoam focused on persuading the court that "Partition by Value Compensation" was the only fair and economically rational solution, based on three main pillars:

• Impossibility of Physical Partition: We proved that since a large commercial building already occupied the land, physically dividing the soil was practically impossible and would cause extreme hardship.
• Protection of Social and Economic Interest: We highlighted that the building housed multiple tenants whose livelihoods depended on their business locations. Demolishing the building would lead to significant social loss and infringement on tenant rights.
• Fairness of Cash Compensation: We provided clear evidence that the client was willing and able to pay the cousins a fair cash amount corresponding to their legal shares, ensuring they suffered no economic loss.

The court accepted Hoam’s comprehensive arguments. Recognizing the existence of the building and the rights of the tenants, the court ruled for partition by value compensation.

The client successfully acquired 100% ownership of the land, and the cousins were compensated with cash for their respective shares. The building remained standing, the tenants continued their businesses, and the client’s decades-old investment was fully preserved.

In property partition lawsuits, many people mistakenly think the only issue is "to split or not to split." However, how it is split determines the survival of your assets.

Had the court ordered an auction, the client could have lost the land entirely and faced massive damages from tenants. Law Firm Hoam’s strength lies in our ability to redesign the "legal frame" of the case to fit the client’s ultimate goal. If you are facing a complex property or inheritance dispute, consult with Law Firm Hoam to find the strategy that protects your future.

Law Firm Hoam | Specialized in Property Partition & Inheritance Disputes