Member Article

Rising farming land values leading to costly divorce

A regional specialist in family law has called for farmers to ensure their plans regarding the ownership of their land and properties are legally documented to protect their family business in the event of divorce.

Victoria Moreton, a partner with Tilly Bailey & Irvine Solicitors, says that farmers must ensure ownership and succession planning for their properties and land is legally documented. Also should they marry or cohabit, formal plans should be put in place as to the future of these assets should the relationship end.

A number of factors have caused farmers to be faced with increased payouts in the divorce courts. Courts will take into consideration the fact that the farmhouse, whilst considered a family heirloom, is also often the matrimonial home. Additionally, a dramatic rise in the value of agricultural land in recent years has also been reflected in divorce settlements. With land often valued over £7,000 per acre, and farm houses considered desirable properties, the assets of even a relatively modest-sized farm can easily be valued at several million pounds.

Ms Moreton said: “For many years, farm assets have been handed down through the family, with these arrangements based on trust. To document such agreements requires a change in mentality, but it is now important to ensure the desired future. We’re now seeing family assets being subject to litigation, potentially putting the business at risk, or resulting in a very high cash payout to the former spouse.

“It is vital that farmers ensure there is legal documentation which clearly states whether the property is a benefit for the person’s lifetime or an outright gift. It is also essential when marrying or co-habiting that consideration is given to what should happen should the couple split.”

Tilly Bailey & Irvine Solicitors is the Tees Valley’s largest law firm with specialists in family law, agricultural law and wills and probate. The firm has offices in Stockton on Tees, Hartlepool, Wynyard Park and Barnard Castle. For further advice, contact Tilly Bailey & Irvine Solicitors on 0800 052 6824.

This was posted in Bdaily's Members' News section by Emma Hignett, i2i Business Solutions .