Farming Divorce Solicitors in the East Midlands

If your spouse owns the farm, you might worry that if you divorce, you will lose your house and source of income.

Whether you;

1. Are getting divorced yourself, or
2. You have passed your farm to an adult child who is getting divorced

And you’re worried about how it will affect your business, our Family Law team are here to help.

How do I get a farming divorce?

First, it is important to gather all information relating to the farm.

This includes mortgages, valuations and who owns what. Doing this now will save time and help avoid disputes down the line.

Both parties should also fully disclose;

• All financial assets
• Income and liabilities including bank accounts, business accounts,
• Valuations of the farming land, business and evidence in relation to income stream

Next, you need advice from a divorce solicitor experienced in dealing with farming and agricultural divorce.

This is a complex area. By getting advice early, you can ensure;

• You preserve your farm
• Continue to operate and generate income, as well as
• Keep it to pass on to future generations.

How can I preserve my family wealth and protect my farming assets during divorce?

It’s crucial to put a plan in place in advance, which considers;

1. Your family’s circumstances, and
2. The specifics of your farming business

This could be in the form of a pre-nuptial agreement, if you are not yet married. If you’re already married, a post-nuptial agreement will set out how you’ll divide current and future assets if you do divorce.

Partnership agreements are also often used by farming businesses. They can state in writing which assets are owned by individuals and which are owned by the partnership.

You might also consider a family, or discretionary trust. This can protect your family assets as well as minimise tax by dividing farm income.

Will I have to sell my farm as part of the divorce settlement?

It’s unlikely that the court would order you to sell the farm as part of the divorce settlement. This is because it would take away your home as well as your source of income.

If other family members own or live on the farm, then it’s sale would also have a significant impact on them.

In some cases, land can be transferred between spouses as part of the divorce settlement. Or, other distributable assets will be considered to avoid selling part of or all the farm.

What will happen to my farm if a family member divorces?

If you have provided;

1. Financial support, or
2. Housing

to an adult child during their marriage and they get divorced, the Court will consider this when deciding upon settlement.

So it’s crucial to consider the implications of supporting family during their marriage. Especially where you have built up your wealth through a farming business.

Do I have to use a solicitor for a farming divorce?

You could apply for the divorce yourself. However, sorting out financial matters resulting from the divorce will need specialist advice.

Farming divorces can be especially complex as the business may have been inherited by one party prior to the marriage. Also, farms are often owned by many family members. As such, their interests and rights also need to be considered. It is important to record any agreement by way of a binding court order.

Additionally, if you own the farm you may want to keep it after the divorce because it generates an income. You might also wish to leave it to future generations.

If:

• Any trusts or gifts have been made, or
• There are contractual arrangements or farming tenancies

This can add further challenges.

Do I need to go to court?

In most cases, you do not need to go to court for a farming divorce. Unless of course, you are unable to reach an amicable resolution.

Alternative dispute resolution (ADR) is another option that can help couples reach a quick and amicable agreement. This could be in the form of mediation, collaboration or arbitration.

How are farming divorces dealt with by the court?

The court usually starts by looking at a 50-50 split, depending on the length of the marriage.

The court will also consider whether an equal division of assets is the fairest option. When doing this they will consider a range of factors, including:

• The needs of any children from the marriage
• The income/earning capacity of both parties
• The financial resources of both parties
• The financial needs of each spouse
• The contribution each party has made or will make towards the welfare of the family
• Any physical or mental disabilities of either of the parties
• How best to preserve the farm as a source of income
• The viability of passing the business on to future generations
• Whether the farm is a marital or non-marital asset

Why choose Rothera Bray for a farming divorce?

We will discuss your case with you in detail. This includes visiting the farm to understand:

1. How it operates, and
2. What family members are involved in its running

We can work with our Corporate and Commercial team to give advice about the structure of your farm, whether it’s a partnership, family trust or limited liability company. We’ll advise you on how you can protect your corporate assets in a family-owned business.

We can liaise with our Wills and Probate team on inheritance and succession planning as well as trust arrangements. In event of a separation or divorce, our dedicated child law team can help with all types of children matters.

We can also advise on pre-nuptial and post-nuptial agreements. This will set out arrangements for how your farm and assets will be divided if you should divorce in the future.

We can advise on cohabitation agreements if you are in a new relationship and are both making financial or practical contributions to the business

We have a network of professionals including accountants and financial advisers we can put you in touch with to advise you on tax and financial ramifications.