Q: A friend of ours is being divorced by her husband. They have run a farm together for over 30 years. The farm originally belonged to her family, but her husband says it will have to be sold so that the assets can be split. He is arguing that he has done most of the physical work and managed the farm whilst she brought up their children. She is devastated as the farm was set up by her grandparents and she considers it is her family farm. Can he really force a sale?
A: Without knowing all the details, it is difficult to answer your question. It all depends on the way the farm has been structured as a business. If it has been structured as a partnership, limited company or a trust, then that should provide some clarity in respect of ownership, control and succession.
The majority of farmers seek legal advice on the structure of their business based on their own particular circumstances, as each type of structure has pros and cons in respect of tax, liability and inheritance. It may also be that your friend’s parents set things up in a certain way before she and her husband took over the farm and this still has some bearing.
When it comes to divorce, all marital assets, including farmland, can be included in the financial split. This is the case even if the land was brought into the marriage by one of the spouses. When considering how the divorcing couple’s finances shall be divided, the court will consider factors such as contributions, needs of both parties, especially housing needs for any children, and fairness.
As inheritance, the marital home and the business are so often intertwined, many farmers these days choose to enter into pre- and post-nuptial agreements as they can offer some protection. Your friend should seek early legal advice from a solicitorconversant with agricultural law as well as divorce.
This question has been answered by Nathan Wright, a Partner with GHP Legal. If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194
