When the proceeds of the sale belonging to persons who are parties to the action, whether known or unknown, have not been allocated among such parties, the action may be continued as between such parties, for the determination of their respective claims thereto, which must be ascertained and adjudged by the court. Further testimony may be taken in court, or by a referee, at the discretion of the court, and the court may, if necessary, require such parties to present the facts or law in controversy, by pleadings, as in an original action.
§ 873.850.Continuance of Action Where Proceeds Not Allocated
Title 10.5. Partition of Real and Personal Property · Chapter 6. Sale of the Property · Article 4. Disposition of Proceeds of Sale · Enacted 1976 · no amendments on record · Last verified July 28, 2026
In one sentenceSection 873.850 lets the partition action continue between parties whose share of the unallocated sale proceeds hasn't yet been determined, letting the court take further testimony itself or through a referee and, if necessary, require the parties to present their competing claims through pleadings as though it were a new action.
Full Text of § 873.850
Plain-English Summary
This section closes out the sale chapter by addressing what happens when the proceeds can't be neatly allocated among the parties yet — whether because ownership shares are disputed or because some parties, known or unknown, haven't had their claims resolved. When the proceeds belonging to persons who are parties to the action have not been allocated among them, the action may be continued as between those parties for a determination of their respective claims.
The action doesn't close out in that circumstance; it stays open as a live dispute limited to the unresolved claims to the proceeds, which the court must ascertain and adjudge.
The procedure for resolving those claims stays flexible. Further testimony may be taken in court or by a referee, at the court's discretion, and if the dispute calls for it, the court may require the parties to present the facts and law in controversy through pleadings, much as in an original action. This mirrors § 873.270's approach on the division side, which similarly keeps an unknown parties' combined share intact until their interests can be sorted out.
Frequently Asked Questions
What happens if the sale proceeds can't be divided among the parties right away?
The action continues as between the parties whose shares aren't yet allocated, so the court can determine their respective claims to those proceeds.
Who can take testimony on these unresolved claims?
The court itself, or a referee, at the court's discretion.
Can the court require formal pleadings on these unresolved claims?
Yes, if necessary, the court can require the parties to present the facts and law in dispute through pleadings, much like in an original action.
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: unallocated proceeds partition sale californiacontinuance of partition action proceeds