When divorce concerns a farm, there are almost always additional considerations that need to be taken into account to make sure that any settlement is fair to all concerned. The family court always has to deal with distributing assets, but this is often more complex with a family farm.
In farming families, it is not uncommon for both spouses to work on the farm and for wider family members to work with them. Commonly, their matrimonial home is the farm itself and other family members may live on the farm too. The court is often asked to take into account inherited and generational wealth, with arguments being made about “non-matrimonial property”. There may be family trusts setting out how the farm and its land can be used and distributed. The interests of the wider family members may also therefore need to be considered.
Family Farms & Divorce
A formal valuation of the farming business and assets may be needed, looking at issues such as liquidity to see if any monies can be raised to buy out the other spouse as farmers are often seen as being capital rich and cash poor and may not have the income to support borrowing. If borrowing is not possible, the court may have to consider an order for sale of part of the farm or consider whether one spouse and any children should have continued use, while the children grow up, of a property used as the family home within the marriage.
In the modern farming world, issues of quotas and diversification into other areas such as holiday lets and tourism may also have to be reviewed and assessed.
Family Farms & Divorce - What the Court looks to achieve
The court looks to achieve fairness, through meeting needs, with first consideration given to the welfare of children.
The issues that arise in farming cases, can therefore cover many different areas of Law – from property and trusts, to company and employment as well the divorce and children matters themselves. Given such complex and sensitive issues, it is important that your legal advice team has expertise in farming divorces and that early advice is sought to achieve a fair and satisfactory outcome to all involved.
