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Greene & Greene is a long established firm of solicitors based in Bury St Edmunds, Suffolk. Our lawyers advise individuals and businesses based all over the UK.

We regularly attract new clients who have been using firms in London, but now receive a more cost efficient and more personal service from us here in Bury St Edmunds.

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Friday
Nov042016

Divorce and the Farming Family

 

 The damaging effects of divorce are often felt more acutely in cases involving farming families: especially so where the farm has been held within one family for generations.

Often farming businesses will involve Partnership or Corporate Structures, land may be co-owned with extended family, land ownership may be within or outside of business structures and various land or property assets may also be held in Trust.  These can all complicate matters.

Typical questions that arise are:

  • How can the assets be divided fairly where a farm has been passed dynastically to one spouse through the generations?
  • What weight will the court apply to the financial and non-financial contributions of the non-owning spouse?
  • Will the court force a sale or transfer of land and property?  

The court’s approach can be unlike other cases and present unique challenges.

The court is tasked with arriving at a fair outcome and must meet the parties’ (and any dependent children’s) reasonable needs. In doing so the court will consider whether the farming family intended that the farm should be passed down through the generations. The court will have to consider whether the farming family can and should retain the farm (in so as far as that is possible) even if that means an overall unequal division of assets. Numerous other factors including the standard of living enjoyed by the parties during the marriage can also be taken into account. 

Funding a settlement may require finance to be raised against the retained farm. Land may need to be sold in order to retain the majority of the farm to pass on to future generations.  Many farming businesses experience cash flow and liquidity issues which can make it difficult (or impossible) for income generated from the farm to satisfactorily meet the needs of two separate households following separation.  

The Family team at Greene & Greene has a wealth of experience and a proven track record of success in farming cases. The team is also able to call upon specialists in the Agricultural Property and Estate Planning teams to deliver creative and bespoke solutions.

Divorces involving family farms are often complex and it is important that if you find yourself in this position you seek the assistance of a lawyer experienced in this area. 

If you require any further advice regarding a divorce involving farm assets then please contact Stuart Hughes (stuarthughes@greene-greene.com or 01284-717493) or Melanie Pilmer (melaniepilmer@greene-greene.com or 01284-717418) who will be pleased to assist you.  For more information on Greene & Greene please visit www.greene-greene.com or follow @greenegreenelaw on Twitter.

 

(Editorial first published in East Anglian Daily Times Rural Review, September 2016)