Divorce and separation in farming families

The Covid-19 pandemic made 2020 a difficult year for most people, but with Brexit predicted to hit the agricultural sector especially hard, farming families may be under considerable strain as we enter 2021.

Couple these factors with the enormous stress Christmas can place on a relationship and it does not take a crystal ball to see a swathe of separations and divorce petitions emerging from farming families in the new year.

Deciding what to do about dividing property, sorting financial affairs and making arrangements for children during separation is always stressful, but it can be particularly complicated where agricultural assets are concerned.

Robert Bellhouse, specialist family law solicitor at Ware & Kay Solicitors in York & Wetherby explains the key things you need to know about farming divorce.

Division of assets for farming families

When a couple divorces, the court usually takes a 50:50 split as a starting point when deciding how assets should be divided. Matters are more complex when a farming family divorces, as ownership of agricultural assets may have been passed down through many generations and split between the wider family.

Farms may also be held in different ways such as in a trust, through a partnership, or a limited company, making it more difficult to assess who owns what. Farmers are also often asset rich but cash poor, and if the farmhouse needs to be sold off to fulfill any financial settlement this could mean the end of the farming business.

While courts may be reluctant to order the forced sale of assets which threaten the future viability of a farming business, they may be left with no choice if a fair financial settlement is to be achieved.

How a solicitor can help in divorce

If you are considering divorce, it is important to take expert legal advice before you start the process. A specialist family lawyer can outline your possible grounds for divorce, as well as your rights and obligations such as the need for parties to give full disclosure of their respective financial positions and how your assets may best be split.

A family lawyer can negotiate a settlement with your ex-partner and their legal representatives so you do not have to, and help you thrash out issues such as tax minimization, whether you need to make a new Will, and whether spending limits should be placed on overdraft facilities, bank accounts and credit cards as the divorce is going through.

They can also advise you on possible alternative dispute resolution options as methods to use to sort out your divorce settlement, instead of resorting to court action which tends to take longer, cost more and be more public.

A trained mediator can help you and your ex-partner talk through your issues to help you reach an agreement. A collaborative law approach, meanwhile, allows you to sit down with your ex-partner to discuss your issues, with separate collaborative lawyers on hand to offer legal advice to each party. Such approaches allow you and your ex-partner to reach an agreement which can then be rubber-stamped by the court without the need for lengthy court hearings.

Avoiding disputes on divorce

One way to avoid a divorce dispute in the first place for farming families is the use of a prenuptial or postnuptial agreement. These are legal agreements where both parties agree how assets should be divided in the event of a split.

Prenuptial agreements are made before a marriage is entered into, while a postnuptial agreement can be drawn up when a couple is already married. They can provide certainty for separating couples and help ensure the continuation of the farming business, while making sure each partner is adequately provided for.

Contact us today

For more information on divorce or separation for farming families or any other enquiries regarding family law, please contact Robert Bellhouse on York 01904 716000 or Wetherby 01937 583210 or email robert.bellhouse@warekay.co.uk to see how we can assist.