proportional division of rights, ownership, or expenses, as between buyer and seller in a real estate conveyance. In trusts and estates, it applies to the division of income and administration expenses between two or more accounts, for example, principal and interest income, or the division of estate taxes among heirs of an estate. Compare with allocation, which assigns income earned or expenses paid to a single account for accounting purposes.
division of a loss among insurance policies in the proportion that each policy bears to the total coverage applicable to the loss. For example, assume Policies A, B, C, and D have $50,000, $60,000, $70,000 and $80,000 of insurance in force, respectively: a total of $260,000 of coverage. Under the apportionment clause found in many property insurance policies, Policy A's percentage of any loss is 19.23%, Policy B's is 21.43%, Policy C's is 26.92%, and Policy D's is 30.77%.
the prorating of property expenses, such as taxes and insurance, between buyer and seller.
Example: A house is sold on July 1. Property taxes, paid in arrears, are due on January 1 of the following year. At closing taxes are apportioned, so the seller pays the buyer one half of the estimated taxes as his share of the estimated tax payment due in January.the partitioning of property into individual parcels by tenants in common.
Example: A sister and brother inherit a property and hold it as tenants in common. The brother wishes to sell. The property is apportioned into 2 separate parcels to allow for the sale.the allocation of unit value to various counties in which a railroad or public utility operates.
Example: See unit value.
