Divorce can be an emotionally challenging and complex process, especially when a farm is involved.
The crossover between marital and agricultural assets often means that farmers face unique circumstances that a solicitor must carefully consider.
Our Agricultural Lawyers, who are ranked in Tier 1 (top tier) of the Legal 500 for Agricultural Law highlight some of our top tips to consider to help you navigate your farming divorce.
There are different types of assets to consider, as farms often involve a combination of land, buildings, machinery, livestock and business structures.
Therefore, you should familiarise yourself with these assets and understand their value well.
Consulting with an agricultural specialist and obtaining valuations of any property/land and business may be necessary to ensure that all assets are valued accurately.
It is sometimes possible (and is best practice) to agree that the expert is instructed jointly by you and your spouse (Single Joint Expert).
Gather any necessary financial documentation
In divorce cases, both parties have a duty to give full and frank disclosure of their assets, liabilities and income, which means that you must disclose your financial position most comprehensively and honestly.
It is, therefore, beneficial to get a head start and pull together all the information you have relevant to the farm, including bank statements, profit and loss accounts, land ownership/tenancies, mortgages, liabilities and tax returns.
Your solicitor will send you a comprehensive list of what is required to enable an exchange of full and frank disclosure.
It is not unusual to involve agricultural surveyors, consultants, and specialist forensic accountants to advise on agricultural divorces at an early stage.
Instructing a solicitor experienced in agricultural divorces will be invaluable, as they will not only be able to help navigate the complexities of your specific case but also refer you to suitable experts with whom they have built strong relationships over time.
Consider alternative dispute resolution
At the outset, both parties should consider exploring mediation, collaborative law or arbitration to resolve the matter in a timely and cost-efficient way and in an attempt to avoid court proceedings.
You may find that a mediator who is familiar with agricultural assets may be able to assist by facilitating conversations and steering the negotiations about the division of assets in the right direction.
Your solicitor will be able to advise if any of the above alternative dispute resolution options are suitable after considering the full circumstances of your case.
Consider any inheritance or trust
Where the farm has been in the family for generations, we understand that there will be some emotional attachment to the land and property.
Older generations of farmers increasingly set up trusts to keep their land in the wider family, and farms are frequently inherited before a marriage.
These assets may be considered non-matrimonial assets that could be treated differently within any financial settlement.
Whether this is relevant in your case, discuss it with your solicitor so that they can provide clear, tailored advice.
Seek support from your network
We understand that divorce can be emotionally exhausting, which is why we would recommend that you seek support from your close network of family and friends, as connecting with others around you will ensure that you don’t feel alone in this process.
Alternatively, seeking professional support from a counsellor or therapist who understands the farming lifestyle and has experience dealing with clients in similar situations may also be useful.
Since the landmark case of White v White, the courts assume an equal split of the matrimonial assets on divorce to achieve fairness.
However, in farming cases, it is important to note that fair does not necessarily mean equal and there is no automatic 50/50 division of assets when there is a need to preserve assets that were owned long before the marriage (which could be classed as “non-matrimonial”).
When dividing the farm, the financial needs of both parties and children must be considered, amongst many other things.
Discussing options and strategies for how the farm can be divided with your solicitor will be beneficial and allow you to set realistic expectations going forward.
Protect your farm for the future
It is important to consider how you can protect your farm in the future, as there are several ways to do so. We would recommend exploring the different options with your solicitor.
One option could be to enter into a pre-nuptial or post-nuptial agreement.
Whilst these agreements are not legally binding in the UK, the courts will place weight on the agreement and will likely uphold an agreement that each party has freely entered into, with a full appreciation of its implications.
Both parties must have exchanged full and frank financial disclosure and must have received independent legal advice on the agreement before signing.
An Introduction to Farming Divorce
Contact Our Agriculture and Family Lawyers
Agriculture divorces are complex. At Myerson, our specialist Family Team regularly advises on all these matters and has the experience to help you reach an amicable settlement with your spouse.
Our family lawyers work closely with a network of agricultural surveyors, accountants, financial advisors and farming consultants.
As an all-service firm, we can provide comprehensive legal advice, and our agricultural team can help you to future-proof your business and protect your assets for future generations.
01619414000
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