5 ways to protect generational and inherited farming assets on divorce

Denney King specialises in complex divorces, including those in which there are inherited farming assets such as a family farm. Mercedes King-Jones and the family team understand the unique challenges that farmers face when going through a divorce. Inherited assets carry sentimental and financial significance, and we are here to advise our clients on how to protect them during divorce proceedings.

The family farm and farmhouse are often inherited assets which are not just a home, but also a way of life and an integral part of a farmer’s livelihood. The team at Denney King are experienced in advising on the complexities surrounding these assets. We are mindful that the family home is central to the farming business and we work closely with our clients, their accountants and land agents to explores strategies and considerations to safeguard inherited assets and to protect the farm during and after the divorce.

Inherited assets are typically property or money received from a family member or loved one. These assets can take various forms, such as property, land, investments, cash, or even a family business. However, the key distinction is that they were received by one of the parties as a gift, rather than acquired by both of them during the marriage.

We consider the history of the farm and any previous decisions made for tax planning purposes. We are also aware that sometimes the decision makers are not always a party to the divorce proceedings, but may be a separate influential third party.

In many circumstances, inherited assets are considered separate property and these assets are often treated differently from jointly owned or marital assets.

5 ways in which you can protect inherited farming assets include:

  1. Maintaining separate ownership – One of the most effective ways to protect inherited assets is to ensure they remain separate. This may involve holding land in your sole name and keeping any money received in a separate bank account. Mixing inheritance with marital assets can make it more challenging to claim that they should be “ringfenced”.
  2. Prenuptial Agreement or Postnuptial Agreement – You may wish to consider entering into a prenuptial or postnuptial agreement with your spouse to explicitly state that inherited assets are separate property.
  3. Documentation – Maintaining detailed records and documentation regarding the inheritance can be crucial in proving the assets’ separate status in case of a divorce. Examples of these documents can include wills, probate records, bank statements, and any other evidence that clearly demonstrates the assets were inherited.
  4. Avoid using inherited assets for marital expenses – Using inherited assets for the benefit of the marriage or family, such as purchasing the marital home or contributing to joint accounts, can blur the line between separate and marital property.
  5. Consult with a Lawyer – Engage the services of an experienced family lawyer who can provide legal guidance and help you navigate the complexities of divorce, especially when inherited assets are involved.

In addition to our specialist divorce team, we also work closely with our private client and rural property teams to provide a well-rounded approach for our clients. This close collaboration allows us to address all the complex issues that arise during a farming divorce, including tax implications, inheritance, succession planning and protection of the family farm for future generations.

At Denney King, we are committed to providing our clients with the support and expertise they need to navigate the difficulties of farming divorce. Our specialist knowledge, combined with our compassionate and supportive approach, allows us to provide comprehensive and effective solutions for our clients.

Contact Mercedes and Holly to find out how we can help you and support you through this process.

Farming Divorce – A Supportive & Compassionate Approach

Farms and farming communities are integral to rural life and play a vital role in our country’s economy. They are often referred to as the backbone of rural communities, but with the challenges that come with this way of life, families can face unique difficulties when it comes to a farming divorce. That’s why it’s crucial for farmers to have a legal team that understands their particular way of life and the complexities that come with it, like the team at Denney King does.

 

The life of a farmer is not just a job, it’s a way of life, where farming is intrinsic to their identity. With that being said, it can also be an incredibly isolating existence, where many farmers spend long hours working, with little or no support. This can lead to strained relationships and unfortunately, in some cases, divorce.

 

One of the biggest challenges facing farmers during divorce is the issue of assets and finances. Many farmers are ‘asset rich’ with capital tied up in land, machinery and livestock, but ‘cash poor’ with very little liquid cash available. The truth is that many farmers work long hours and put in a significant amount of effort, yet their lifestyle is often inconsistent with their declared income.  This can make dividing assets during a divorce complicated and time-consuming.

 

A challenge for lawyers arises out of casual arrangements that many farming families have with each other, family members and neighbouring farms. It is common for farmers to work together in an informal arrangement, where they share equipment and labour when working on various parcels of land. This type of arrangement can make it difficult to determine who owns what, and it can be a complex issue to resolve during divorce proceedings. We at Denney King work closely with our property team in order to ensure accuracy when establishing the legal ownership and occupation of land.

 

It’s important for farmers to have legal advice and support from lawyers who understand the intricacies of a farmer’s unique way of life and the complexities that come with it. Mercedes and the family team at Denney King are dedicated to providing the support and guidance necessary to navigate these difficulties and achieve the best possible outcome.

 

Get in touch with Mercedes or Holly for chat if you think you could benefit from our expertise.

How to choose a good divorce lawyer who gives clear & honest advice

There are hundreds of firms to choose from, how do you know which divorce lawyer is right for you or your client?

You will need to find a firm with a team that supports you by both recognising and understanding your priorities and concerns and can also explain how they will help you achieve your goals, rather than just merely process your case.

What makes us different from many other firms?

From the outset we invest in you, we immerse ourselves in your case so that we understand the dynamics of your family and the complexities of your circumstances, whether that be your farm, your business, your trust interests or perhaps your generational wealth. As a result we are able to ensure that we always have your goals at the forefront of our advice. We offer a strategic approach and pride ourselves on being solutions focused and giving honest and realistic advice, which our client’s really value.

 

We are experts in our field and our specialist team will work collaboratively with your trusted professional advisors to ensure that you receive well rounded and bespoke advice and a joined-up approach to your decision making. This consistency will ensure that we can support you with all aspects of your divorce including the valuation and liquidity of your business, options in relation to yours and your spouses’ pension assets and tax consequences, to name a few. We will also review your Will, and can prepare an LPA and, depending on the nature of your business can assist with preparing Partnership Agreements, drafting overage agreements and/or buying and selling agricultural land.

 

How can we help you?

We represent clients nationwide and regularly advise business owners, high net worth individuals, farms and landowners on complex financial disputes in divorce proceedings with particular experience and expertise in cases involving:

divorce lawyer, prenup, farm divorce, business divorce, divorce inheritance, pension divorce

 

  • Family farms/ farming partnerships
  • Family businesses
  • Complex business structures, assets and income structures
  • Inherited / generational wealth
  • Multiple Properties/ property portfolios
  • Third party interests, intervenors and proprietary estoppel claims
  • Trust assets
  • Substantial pensions/ final salary pensions

For an initial FREE call with a divorce lawyer from Denney King, please contact Holly here or call on 07936951063

Holly Smith – LinkedIn

 

 

 

A Supportive & Compassionate Approach to Farming Divorce

Farms and farming communities are integral to rural life and play a vital role in our country’s economy. They are often referred to as the backbone of rural communities, but with the challenges that come with this way of life, families can face unique difficulties when it comes to a farming divorce. That’s why it’s crucial for farmers to have a legal team that understands their particular way of life and the complexities that come with it, like the team at Denney King does.

 

The life of a farmer is not just a job, it’s a way of life, where farming is intrinsic to their identity. With that being said, it can also be an incredibly isolating existence, where many farmers spend long hours working, with little or no support. This can lead to strained relationships and unfortunately, in some cases, divorce.

 

One of the biggest challenges facing farmers during divorce is the issue of assets and finances. Many farmers are ‘asset rich’ with capital tied up in land and livestock, but ‘cash poor’ with very little liquid cash available. The truth is that many farmers work long hours and put in a significant amount of effort, yet their lifestyle is often inconsistent with their declared income.  This can make dividing assets during a divorce complicated and time-consuming.

 

A challenge for lawyers advising farming clients arises out of casual arrangements that many farming families have with each other, family members and neighbouring farms. It is common for farmers to work together in an informal arrangement, where they share equipment and labour when working on various parcels of land. This type of arrangement can make it difficult to determine who owns what, and it can be a complex issue to resolve during divorce proceedings. We at Denney King work closely with our property team in order to ensure accuracy when establishing the legal ownership and occupation of land.

 

It’s important for farmers to have legal advice and support that understands the intricacies of a farmer’s unique way of life and the complexities that come with it. Mercedes and the family team at Denney King are dedicated to providing the support and guidance necessary to navigate these difficulties and achieve the best possible outcome.

 

Get in touch with Mercedes for chat if you think you could benefit from her expertise.

Protecting Generational Assets During Divorce

Denney King specialises in complex divorces, including those in which a family farm is the central asset. Mercedes King-Jones and the family team understand the unique challenges that farmers face when going through a divorce, especially when it comes to assets such as the family farm.

The family farm is usually an inherited asset which is not just a home but a way of life and an integral part of a farmer’s livelihood. The team at Denney King is experienced in advising on the complexities surrounding these assets. We are mindful that the family home is central to the farming business and we work closely with our clients, their accountants and land agents to protect the farm during and after the divorce.

We understand that the family farm is often passed down from generation to generation, and we work to ensure that this asset is protected for the family’s future. We consider the history of the farm and any previous decisions made for tax planning purposes. We are also aware that sometimes the decision makers are not always a party to the divorce proceedings, but may be a separate influential third party.

In addition to our specialist divorce team, we also work closely with our private client team to provide a well-rounded approach for our clients. This close collaboration allows us to address all the complex issues that arise during a farming divorce, including tax implications, inheritance, succession planning and protection of the family farm for future generations.

At Denney King, we are committed to providing our clients with the support and expertise they need to navigate the difficulties of farming divorce. Our specialist knowledge, combined with our compassionate and supportive approach, allows us to provide comprehensive and effective solutions for our clients. Contact us to learn more about how we can help you.

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