When relationships break down, the fall-out in terms of property and financial matters can be hard to navigate, particularly with regards to farming divorce matters and especially where there is a family farm involved.
This is because farms often involve complex business structures and a variety of assets including land, livestock and deadstock. There may also be land ownership disputes, third party interests and other complicating factors.
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What are the benefits of using a family solicitor if you own a farm?
If you are separating from your partner, our specialist family lawyers can advise on all of these issues.
Our solicitors will typically arrange expert valuations of all relevant assets, carefully consider which assets should be considered as ‘joint’ and should fall outside the financial settlement. A solicitor will also negotiate to ensure you reach a fair agreement.
If you are married, engaged or living with a partner, it is a good idea to consider putting a nuptial agreement or cohabitation agreement in place.
A pre-nup, signed before a wedding, or a post-nup, signed after a wedding, can be an “insurance policy” that protects a couple from the harmful conflict and legal arguments which can follow a separation. A cohabitation agreement works in much the same way for unmarried couples.
What happens to a family farm if you divorce your partner?
Farming is traditionally a family business, with farms often passed down through several generations.
This means that there can be an element of emotional attachment not generally present when dealing with other types of commercial assets.
The family courts will try to preserve inherited assets, such as family farms, for future generations, but this is never guaranteed and is always balanced against the need to provide fairly for a spouse moving out of the farm.
For farmers (and their spouses) going through divorce, it is important to obtain expert advice at the outset to seek a negotiated settlement that works for everyone.
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How can you protect your farm when you get married?
Because farming divorces can be so complicated and because a spouse can gain an interest in a farm through marriage, even if they never work for the farm, it is advisable that farmers consider entering into a pre-nuptial agreement before marrying.
This will look to “ring-fence” solely-owned and inherited assets, which can bring reassurance to other family members involved in the business.
It also brings peace of mind to the spouse who is “marrying in”, as the agreement can ensure that they will be properly provided for in the event that the marriage fails.
Sometimes the spouse will be joining the partnership, or become employed by the business, so having a formal agreement in place makes further sense.
Our expertise in action
- Acted for the wife in financial remedy proceedings where the husband was part of both a multi-million pound family farming partnership and a farming company with his siblings. With the intention of thwarting the wife’s financial claims, the husband argued that he was not a partner or shareholder and therefore we also acted for the wife in associated civil proceedings to determine this issue.
- Acted for the husband in financial remedy proceedings at a late stage of complex proceedings following husband’s dissatisfaction with his previous solicitors. The Financial Dispute Resolution hearing was imminent and so, after swiftly appraising ourselves with the facts of the case, we represented him at the hearing and ultimately negotiated a favourable financial settlement which obviated the need for a Final Hearing, saving time and costs.
- Acted for the wife in relation to a complex seven-figure family matter which involved not only a family farm partnership, but also a separate business which was owned together with other family members. The other family members were included in the matter as intervenors and whose interests competed with the interests of the parties. Following extensive negotiations, a favourable financial settlement was achieved for the wife which saved significant costs.
- Acted for the husband in financial remedy proceedings where there was a farming tenancy with the former wife’s family. The parties had relied upon the tenancy to develop the farm and surrounding land. We were able to argue that the tenancy should continue for the husband’s lifetime, which enabled him to remain at farm and solely benefit from the business.
