Navigating Farm Divorce Settlement
Divorce can be a complicated process, especially when businesses are involved. Negotiating a farm divorce settlement is even more complex due to the unique circumstances of rural setups. Farms are often owned by the wider family, making it difficult for courts to affect the livelihoods of third parties. Additionally, farms may have a special emotional connection to the family, making the impact of a divorce affect more than just the separating couple.
Some of the complexities of farm divorce settlements include determining who owns what and whether the company can be divided. Furthermore, farm assets can be tied up and difficult to identify, making liquidity a factor in the settlement.
Ways to protect farm assets during divorce include entering partnership arrangements, setting up trusts, and creating nuptial agreements (both prenuptial and postnuptial). To reach a fair settlement, certain steps must be taken, such as valuing the farm using the net asset model, determining income, considering tax implications, and negotiating the settlement.
It is important to work with specialist farming divorce solicitors who have in-depth experience and knowledge of the unique characteristics of the agricultural sector. Thursfields’ team of farming divorce lawyers has decades of experience in assisting rural business owners nationwide and can handle everything from farm divorce settlements to trusts and tax implications. To find out more information, click here.
