Farming is not just a business; it’s a way of life, often entangled with family history, inheritance, and emotional ties. The unique nature of farming assets, like land, livestock, and machinery, requires careful consideration in a divorce settlement.
Outlined below are the key Issues to Consider
- Valuation of Assets:
Determining the value of farming assets can be challenging. The value of land, crops, and livestock can fluctuate, and machinery depreciation needs to be accounted for.
- Inheritance and Ownership:
Farms are often inherited and may have complex ownership structures. Understanding who legally owns what is critical.
- Income Assessment:
Farming incomes can be irregular and influenced by various factors, including market prices, weather conditions, and government policies.
- Living Arrangements:
In many cases, the family home is part of the farm. Deciding who stays, who goes, and how housing is provided for both parties can be particularly sensitive.
- Division of Labour:
Both spouses might have contributed to the farm’s success in different ways. Recognising and valuing these contributions fairly is vital.
Steps to Take
- Professional Valuation:
Engage experts to accurately value farming assets.
- Financial Advice:
Consult with financial advisors who specialise in agricultural business to understand the implications of different settlement options.
- Specialist Legal Support:
It is crucial to seek advice from family law solicitors who have experience with farming divorces. They can navigate the complexities and ensure a fair settlement.
What to Avoid
- Rushing Decisions:
The emotional turmoil of divorce can lead to hasty decisions. Take your time to ensure that all aspects are thoroughly considered.
- Overlooking Contributions:
Recognise all contributions to the farm’s success, whether financial or otherwise.
- Ignoring Tax Implications:
Farming assets and incomes have specific tax considerations. Overlooking these can have significant financial consequences.
Divorce is a difficult process, but with the right support and advice, it can be navigated more smoothly.
We recommend that you seek legal advice from Family Law specialists at Wollens.
Rebecca Procter is a Partner in the Family Team.
Contact Rebecca today on 01803 225158
or email [email protected]
Email us : [email protected]
call one of our offices:
South Devon 01803 213251
Exeter 01392 274006
North Devon 01271 342268
You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.
https://wollens.co.uk/services/family-law/
