Hm... well. In one campaign I was in it fell pretty firmly into an IC decision. Prompted by the then 17 year old party thief saying, shortly after the first mission where we all got shoved together by fate, "OK. Well. If we're going to keep working together... I'm leader. And I get first pick of the gems." And for some wierd reason they BOUGHT IT when I said it, and actually followed the commands of the kid?! *still boggling* But we eventually ended up in a sort of combination of methods:
1) Critical need trumped. We all liked each other's characters out of game so we were willing to make sure no one died who didn't need to.
2) Usefulness next. Since the resale rate was abysmal - or we were unlikely to find a good place to offload some of the goods, we tended to sort and share instead of resell. Things that got resold were things *no one* wanted. There was no risk of someone claiming a wand as 'their share' and selling the item when someone else was going "But, but... I... but?"
3) Balance, the GM was decent about making sure there was an even mix of items to appeal to all. When there wasn't, generally the player would agree to forgo something later - or pay back into the party trove with gold or gems. Randomly generated treasure - while less powerful things came out of it - did tend to produce a good mix.
4) If it was a gem, Seryi got first pick. (Seriously, they went with it for the whole campaign, lord knows why...)
The other campaign I'm in - we actually don't have as much of a treasure issue. Mostly because the people we fight don't always *have* treasure on them - or it's something we wouldn't want to take with us. We've used a few methods - all agreed on in character.
1) Gold, metals, gems etc: split evenly. Thats what we have a bank account for. Trade the difference in gold as need be.
2) Property: even ownership and partnership rights. If you want to sell part of your rights, you do so with permission from the others, the others have first bidding if you want to sell your percentage.
2) Items: critical need, use, in party trade as need be. We don't tend to look at the monetary value at this point, more of "How useful Is it to me?" Depending on play an item might be valuable in funds - but worthless in use. We've never resold. Mostly because the GM makes really neat unique items the rare times he give things out - why would we? And again, there's the problem of 'not everyone in the world can afford to buy it'. He's good about doing the balance as well, in fact I think sometimes he'll make mental notes to himself when we're complaining about some bad stat or something not working out right - and slip in the chance to get it later in the game.
We've only hit the jackpot three times in the game.
Once in raiding a mercanes castle, we claimed the vault and all property in the castle. (And the castle. And the deed to the land in Sigil someone had taken as payment for getting us all blackmailed.)
Once in raiding a Lady's Maze, where we put all the items in a list and went round robin. Each person picks one item off the list as it circulates around the room - if someone else wanted it they could work out a trade privately later.
And third, well, we haven't split the loot up yet - but it involved dragons. It'd also be a spoiler for the storyhour so I won't go into details.