Divorce law: Legal advice on how to protect the family farm if your child’s marriage breaks down

Here’s all you need to know about protecting the family farm in a divorce

Family farm ownership can be an added layer of complexity if a couple decides to divorce – here’s what you need to know

Imagine a situation in which the son of an older generation farming couple working on the farm (and who may be a partner or a shareholder in the business) lives in one of the farm properties with his spouse.

It may be that they live rent-free as part of the son’s overall remuneration. The young couple may have children together. What happens if divorce hits? Where does the spouse go? What are her claims in circumstances where the property in which she lives is not owned by her husband but by his parents?

Providing for the spouse and children

In considering her financial claims, the law requires a full assessment to be undertaken of all relevant circumstances. The needs of the wife, and any children in her care, will be crucial. These will focus mainly on housing and income needs. Although her husband may not own the farm or any of its assets, it may be considered by the court that given how the family has organised its finances during the marriage of the younger couple, the husband has ‘resources available’ to him via his parents.

The court will be keen to ensure that the wife’s needs are met and may order a lump sum payment to be made to her to enable her to be appropriately rehoused. Alternatively, property may be settled for her benefit while they raise their children.

If the husband has a share of the farm (either the trading business or the underlying assets in the form of land, property, dead and livestock etc), even if these assets have been gifted to the husband by his parents - and may have been in the family for generations before them - they are not ringfenced or excluded from the wife’s claims.

Whilst this does not mean that the husband’s assets are automatically shared with the wife, her needs will be important.

To meet any claims from the wife, the family may have to re-finance the current borrowings of the business or sell land. This may impact the ongoing farming enterprise.

Expert advice

Margaret Simpson is a Consultant in the specialist family law firm, Silk Family Law, with offices in North Yorkshire, Leeds and Newcastle upon Tyne. Margaret and her team have significant expertise in farming and landowning cases. For more advice and guidance please contact Margaret Simpson at Silk Family Law at 01748 900 888 or visit www.silkfamilylaw.co.uk.