(1) The party seeking partition must show an ownership interest in the property. New York is an equitable distribution state, which means that property must be divided as fairly as possible in a divorce.The plaintiffs contended that the three individual parties held equal membership interests in the LLC, which owned the property. A partition and exchange agreement is a legal contract between divorcing couples that outlines the terms of their property division and distribution. Case opinion for VA Court of Appeals GALIOTOS v. GALIOTOS. Read the Court's full decision on FindLaw. Plaintiffs were thirdparty beneficiaries of the operating agreements between the City and BCAR.