Sounds like you may have a lawsuit with against the co-owner. Spent on the facts you tell us about half of the money is yours. See a local lawyer
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The checks were issued to settle an insurance claim. The money does not actually have to get spent on repairs. However, as co-owner of the house, you likely had a right to half the money. You need to consult with a NC attorney ASAP to see what the statute of limitions is. You need to learn if any statute of limitations is imminent.
I am a former federal and State prosecutor and now handle criminal defense and personal injury/civil rights cases. Feel free to check out my web site and contact me at (212) 385-8015 or via email at Eric@RothsteinLawNY.com. The above answer is for informational purposes only and not meant as legal advice.