Divorce can be a challenging process, and when a farm is involved, it can add an extra layer of complexity to proceedings. Farming divorce cases require particular attention to detail as there are often many assets involved, and the livelihood of the family may depend on the farm’s future.
In this article, we will explore everything you need to know about getting a divorce in the UK when a farm is involved.
Are you considering a divorce and a farm forms part of the matrimonial assets? If so, our Clive Hogan can provide specialist legal advice and assistance.
Contact us today by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or completing our Free Online Enquiry Form to book a free initial consultation with our specialist farming divorce lawyer.
What makes farming divorce cases complicated?
Farming divorce cases are complicated because they involve many assets and often have an emotional attachment to the land and property. The farm may have been in the family for generations, and the family’s livelihood may depend on it.
There may also be complex business structures, such as partnerships or limited companies, that need to be considered. Additionally, there may be issues around inheritance and trusts that add to the complexity of the case.
What are the key factors to be considered in farming divorce cases?
When dealing with a farming divorce case, several initial factors need to be considered, including:
- Valuation of assets, including the farm, land and any business structures.
- Ownership of assets, including any inheritance or trusts.
- The income of both parties, including any income generated by the farm.
- The contribution of each party to the marriage and the farming business.
- The needs of any children involved, including their housing and schooling requirements.
- The tax implications of any settlement.
- Whether there is any prenuptial agreement or postnuptial agreement in place
How is a farm valued and divided in a divorce?
When valuing a farm in a divorce, it is essential to consider all assets, including land, buildings, machinery, livestock and any business structures. Intangible assets, such as farm subsidies, may also form part of the overall value. A professional valuation should be obtained to ensure that all assets are accurately valued.
Once the farm is valued, it can be divided in several ways, including:
- Selling the farm and splitting the proceeds.
- One party buys out the other’s share of the farm or balances this against the other assets of the marriage.
- A transfer of ownership of part of the land to a spouse with an agreement that it is let back to the other.
- Creating a partnership or limited company to manage the farm and its assets jointly.
What income does the farm produce?
If farming is your career, it will usually be referred to as a ‘lifestyle business’. A lifestyle business is a type of business that has a typical business structure but also provides a home and funds utility bills and other costs, for example, the provision of cars or other vehicles. The actual income that is then paid to the farmer tends to be modest, as most of the income will cover all of the above.
The income and benefits that are received by the farmer can be examined by looking at the single joint expert account, which would come in handy should there be a case where the non-farming spouse is requesting spousal maintenance.
How can I protect my farm in the event of a divorce?
There are several ways to protect your farm should you end up going through a divorce, including:
- Entering into a pre-nuptial or post-nuptial agreement to protect your assets.
- Ensuring that any inheritance or trusts are ring-fenced and not considered marital assets.
- Keeping accurate records of any contributions made to the farming business.
- Seeking legal advice to ensure that all assets are adequately protected.
What happens if the farm is inherited or is part of a Trust?
If the farm is inherited or part of a Trust, it may be possible to ring-fence these assets and ensure they are not considered marital assets. However, it is essential to seek legal advice to ensure that the Trust is structured in a way that protects the assets and that any inheritance is not considered a marital asset.
What if the farm is owned by other members of the family?
If the farm is owned by other members of the family, this can complicate the divorce settlement. It may be necessary to enter into a partnership or limited company to manage the farm jointly. During the farming divorce process, the court will typically look at what was owned before the marriage, who contributes to the farm and how as well as what is necessary for each member to remain financially stable.
The court will try and find a settlement that takes all of this into account without leaving a member of the party struggling. In this case, it is still essential to seek legal advice to ensure that all parties’ interests are protected.
Will I need to go to court when dealing with farming divorce settlement?
In most farming divorce cases, it is possible to settle without going to court. However, if a settlement cannot be reached, it may be necessary to go to court to resolve the issue.
Ideally, it is recommended that you avoid court as this can be a long and costly process; more amicable options such as mediation are usually advised.
I am divorcing a farmer, what are my rights?
If you are divorcing a farmer, you have the same rights as anyone else getting a divorce. You are entitled to a fair settlement that takes into account your contributions. This settlement should also take into account what is necessary to keep the farm business afloat.
In farming divorce cases, the courts can seek to avoid making an order forcing a outright sale of the farm, if this is possible. Although to achieve this the court may consider an order for a spouse to be paid out over a number of years or to offset the farm against the other liquid assets, a farm is not a unique type of asset, and any order must be fair in the circumstances of the case.
Farming divorce facts
Going to court is not the only option in farming divorce cases
There are various alternative dispute resolution options available. Some of these are mediation, collaboration and arbitration. Trying to ensure that things are kept as amicable as possible will help in reaching an agreement quickly and more cost-effectively. The process of court tends to take longer as well as cost more and be much more public so if it can be avoided, it should.
Fair does not mean equal
It is easy to assume that, for the divorce to be completely, objectively fair, everything must be split down the middle. However, this may not always be the case, especially in a farming divorce. An equal division of assets and wealth accumulated throughout the marriage cannot always be achieved with farmers because of the need to preserve assets that were owned long before the marriage or fundamentally form the basis of the parties’ income.
Fairness typically refers to the financial needs of both parties being met and will usually avoid the forced sale of assets, which could threaten the viability of the farming business. An example of this would be a judge ordering a spouse to be paid out over a number of years, rather than all at once.
Full financial disclosure is required
This means that throughout the divorce proceedings, both parties must give full disclosure of their financial positions. This is the case for all divorce settlements. In the case of a farming divorce, this will range from information as to how assets are held, to full access to the latest farming managing accounts, as well as a review of income generation and spending.
It is recommended that you provide this, and as much information as you can, early on to avoid protracted arguments and mistrust between the parties that may cause issues down the line.
Farming divorce lawyers
If you are going through the divorce process and directly own a farm, have an interest in a farm (for example, where you work on a family farm held under a Trust), are likely to inherit a farm or are married to someone who owns or has an interest in a farm, our specialist farming divorce solicitor Clive Hogan will be able to assist, including in high net worth divorce cases where farming assets, land, trusts and inherited wealth require careful consideration.
Clive has extensive experience in Family Law and the resolution of financial proceedings and can assist you throughout the entire process.
Get in touch with our farming divorce lawyers
Get in touch today by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or completing our Free Online Enquiry Form to arrange an initial consultation with a specialist farming divorce lawyer.
The content of this article is for general information only. The information in this article is not legal or professional advice. If you require legal or professional advice you should obtain independent expert advice from qualified Family Law Solicitors such as those within our firm.
