When there are liens on the interest of any party in the subject so sold, the court may, on the petition of any person holding a lien, ascertain the liens, and apply the dividend of such party in the proceeds of sale to the discharge thereof, so far as the same may be necessary.
§ 8.01-84.Application of proceeds of sale to payment of lien.
Chapter 3. Actions · Article 9. Partition · Last amended 1977 · Last verified July 16, 2026
In one sentenceSection 8.01-84 lets a lienholder petition the court to have a partition sale’s proceeds applied to satisfy a lien on a party’s interest in the property, once the court ascertains the liens involved.
Full Text of § 8.01-84
Plain-English Summary
This section protects lienholders whose collateral was a party’s interest in property that ends up sold through partition. On the petition of anyone holding such a lien, the court can ascertain the liens attached to a particular party’s interest and apply that party’s share of the sale proceeds to pay them off, to the extent necessary.
The mechanism keeps the lien’s claim tied to the specific party’s share rather than the sale proceeds as a whole, so a creditor with a lien against one co-owner’s interest looks to that co-owner’s dividend, not the entire fund distributed to every party.
Frequently Asked Questions
Can a lienholder reach the proceeds of a partition sale?
Yes. On the lienholder’s petition, the court can ascertain liens on a party’s interest in the property and apply that party’s share of the sale proceeds to discharge them.
Whose share of the proceeds does the lien attach to?
Only the share belonging to the party whose interest the lien encumbered — not the proceeds distributed to the other co-owners.
How does the lienholder start this process?
By petitioning the court, which then ascertains the liens on the relevant party’s interest before applying that party’s dividend to their discharge.
Does the entire dividend have to go toward the lien?
Only as much as is necessary to discharge the lien — the statute limits the application to what is needed, not the full share automatically.
Does this section apply outside of partition sales?
The section refers to liens on the interest of a party in “the subject so sold,” tying it to sales conducted as part of a partition proceeding under this article.
Amendment History
Code 1950, § 8-693; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
Also known as: lien on partition sale proceeds virginia8.01-84 virginiacreditor petition partition sale virginiadischarging lien from co-owner's share virginia