Farms are tricky assets in divorce (South East Farmer)

2 August 2023

South East Farmer have published an article by Head of Family, Natasha Grande, about how divorce proceedings involving farms present unique challenges due to their high capital value but low income yield.

In many cases, farms have been in the family for generations, making them not only a source of livelihood but also a symbol of legacy and heritage. When a divorce occurs, if funds need to be raised to settle financial obligations to one party, it could threaten the long-term viability of the farm and disrupt succession plans.

Moreover, farms often have complex ownership structures, with assets owned by various family members. This can further complicate the division of property during a divorce. In some cases, liabilities may even exceed the equity, adding another layer of complexity to the divorce process.

Natasha writes: "It can be a difficult balancing exercise for the courts, dealing with the wish to keep a generational family farm together and balancing the needs of a spouse who is leaving the marriage."

Read the full article here

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