For farming families, home and business can be inseparable, inheritance and succession key and the combination of high asset values and low liquidity challenging. So we understand why emotions can run high.
There is no particular difference between how the law treats a business and a farm on divorce. However, farms are a lot more complicated to deal with because:
- Often assets held within a farm are tied up and illiquid
- Farming families can be capital rich but income poor
- Farms are frequently “lifestyle” businesses where much of the benefit of running a farm is the lifestyle that is supported by the farm
- Often farm are inherited assets and are intended to be passed down to the next generation
- Often there will be an impact on third parties such as parents, siblings and children who may live on or be involved in the ownership of running of the farm
- often there will be a reliance upon farm subsidies that affect the revenue of the farm
- there may be family trusts and/or complex ownership structures
- there will be tax consequences to take into account
