Agricultural Divorce

Any interest either party to a divorce has in a farm or farming business comprises one of the assets that the court will consider when approaching the matter of distribution upon marital breakdown.

Complex methods of ownership, liquidity issues, tax concerns and the fact that farming families can be capital-rich but income-poor are among the complicating factors that make agricultural divorce more complex than the typical divorce case. For this reason, Wilson J branded agricultural divorces "notoriously difficult to resolve" in R v R [2004] FLR 98. The added intricacy makes an expert's attention critical in securing the most favourable outcome.

At Myerson, our team of specialist family lawyers are regularly instructed by individuals who have interests in a farm or farming business and are on hand to help demystify the process. We have put together some helpful information below to guide you.

Whilst for non-agricultural divorces, an equal division of assets and wealth accumulated during the marriage is often considered a fair outcome, there is often a departure from equality in farming cases due to the non-matrimonial nature of some farming assets. For example, a farm which has been gifted, inherited or in the family for generations, in the expectation that it will be handed down, is an important factor the court will consider.

Cases of equal sharing in agricultural divorces are few and far between. The reason for a departure from equality in farming cases is often justified due to the nature of farming assets, as assets in such cases are often sufficient to meet the needs or reasonable requirements of the parties without dividing a farm in half.

Many farming cases settle based on a wider family-based agreement, with the farming family agreeing to use family money to buy out one spouse to achieve a clean break. However, those cases that do not settle often end up in court due to thorny issues surrounding trusts, partnerships, companies, third-party rights and inheritance issues.