Advice on Divorce and Farming
A guide to navigating the complexities of a divorce when a farm, farming partnership or farming business is to be considered
What is different about a farming divorce?
The assets involved when divorce and farming meet are often complex. Complexities include:
- generational ownership,
- illiquidity,
- (asset rich, cash poor),
- joint ownership with wider family,
- home and business enmeshed,
- husband and wife sharing legal interests in the farming partnership or business,
- often no working experience outside of the farm and diversified businesses dependent on farm infrastructure.
These are just some of the reasons why finding a fair solution for couples who have interests in a farm or land require a solicitor. It’s key to speak to a legal expert with appropriate knowledge and expertise, and one who gives attention to detail.
To discuss a family law issue call 0113 320 5000
Emotions around the land and farming enterprise can be very strong and this too can make discussions and negotiations more complex. A farm is a home and a business, and both parties in a marriage will often feel that they have made contributions and sacrifices, regardless of who was brought up on the farm. Farms are almost uniquely businesses where the whole family can be involved. Often without obviously direct financial reward. Helping with, for example, the books, animal passports, training for health and safety, running holiday lets, mucking in at lambing, helping haul grain from the combine at harvest and the list goes on.
Some of the key points that are likely to need to be addressed when it comes to divorce and farming:
- Making sure that you have clear understanding of the background. How assets were acquired and by whom, and the history involved, especially where the farm is generational.
- Clearly defining what is owned and by whom - this is not always straight forward.
- Getting fair valuations of assets, including houses, farmland, machinery, buildings and live and dead stock, by way of example.
- Consideration of the debts as well as the assets and how they will continue to be serviced. How they are secured and the terms of any security and whether it can be released if necessary.
- The tax implications of sale or transfer of different assets.
- Income needs of the parties and any dependent children and from which assets is the income primarily derived.
- Contributions both financial and otherwise to the farm.
- The interests of any third parties including whether any assets are held in a trust.
- The potential for reorganising business structures to buy out share interests and retire directors.
- Understanding any development potential of the land and buildings.
When it comes to divorce and farming, no two farming divorces are the same. Very often appropriate experts will be needed to advise and provide information about many of the points referred to in the list above and at Winston Solicitors we work with a number of trusted land agents and valuers, and often the farm accountant. We frequently use shadow experts. These will be our own choice of expert to assist us to consider the evidence of the court appointed Single Joint Experts or the family advisors and to assist with raising questions of them when appropriate.
We can then tailor every strategy to the individual needs of the specific farming case we are advising on.
Contact our family law team to discuss divorce and farming
Our team of family law experts are on hand to offer you the support and advice you need during this challenging time.
Call us on 0113 320 5000 or email @email.
Strategic Legal Advice for Farming Assets on Divorce
At Winston Solicitors, we specialise in helping clients across Leeds, Harrogate, Yorkshire and Northumberland as well as nationally with divorce cases involving farming and inherited assets.
Speak to our family law experts today
Our team is ready to help you navigate your divorce with clarity, confidence and expertise.
