(a) Where division cannot be made equally among the parties according to their interests without prejudice to the rights of some, compensation may be required to be made by one party to another to correct the inequality.
§ 873.250.Compensation Required Where Division Cannot Be Made Equally
Title 10.5. Partition of Real and Personal Property · Chapter 5. Division of the Property · Enacted 1976 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 873.250 lets the referee require one party to pay another an equalizing sum, known as owelty, when the property can't be divided exactly according to the parties' proportional interests, but shields unknown owners and minors from having to make that payment unless a minor has enough personal property to cover it and doing so serves the minor's interest.
Full Text of § 873.250
(b) No compensation shall be required to be made to others by unknown owners or by minors unless it appears that a minor has personal property sufficient for that purpose and the minor's interest will be promoted thereby.
Plain-English Summary
Real property rarely divides into portions that match the parties' proportional interests with mathematical precision. Roads, structures, and terrain all get in the way of a perfectly even split. This section addresses that reality with owelty: where division can't be made equally among the parties according to their interests without prejudice to some of them, compensation may be required from one party to another to correct the inequality.
Owelty is the payment that closes that gap — a co-owner who receives a somewhat larger or more valuable share pays cash to a co-owner who receives less, so the overall result still reflects each party's true interest even though the physical division wasn't perfectly proportional.
Subdivision (b) protects two groups of parties from being forced to make that payment. Unknown owners can't be required to pay compensation to others, and neither can minors, unless the minor has personal property sufficient for the purpose and paying would truly promote the minor's own interest.
Owelty isn't left to chance in the division process — § 873.280 requires the referee's report to include any recommendation as to owelty, and § 873.290 governs the motion to confirm, modify, or set aside that recommendation.
Frequently Asked Questions
What is owelty?
A payment one co-owner makes to another to equalize a physical division of property that can't be made exactly proportional to the parties' interests.
When is owelty compensation ordered?
When the property can't be divided equally among the parties according to their interests without prejudicing someone's rights.
Can a minor be forced to pay owelty?
Only if the minor has personal property sufficient for that purpose and making the payment would promote the minor's interest.
Are unknown owners required to pay owelty?
No. Section 873.250(b) shields unknown owners from being required to make that payment to others.
Amendment History
Added by Stats. 1976, Ch. 73.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
Also known as: owelty california partitioncompensation unequal division partition california