Running a farm is hard. It’s even harder when divorce threatens the assets that make farming possible.
There are few divorces more complex than a farm divorce. Fortunately, the team at family lawyer of Saskatoon has decades of experience working with farmers just like you. Our background in family law, business law, and real estate law along with our love for farmers and our knowledge of the industry gives us the background to come up with creative solutions to the challenges posed by a farm divorce.
Call us and you’ll be in good hands.
How are Assets Divided in a Farm Divorce?
Every farm divorce is different because assets and income are less straightforward. Both spouses may own shares in this family business. Certain products like crops and livestock have variable value.
Both spouses may own a share in farm equipment, but liquidating it means the farm stops making money. Some land may be non-marital property, while other plots may be marital property. The spouse may have contributed to making improvements that changed the status of inherited property.
It takes a careful review of all the assets and possibilities to come up with a solution that works for both partners. The good news is that in marriages with children both partners do often have a stake in preserving the farm against the children’s future, and thus the departing spouse is often open to alternative arrangements.
These arrangements can include lump sum spousal support agreements, share buyouts, equalization payments paid over a period of years, alternative methods for deriving income, and more.
The specific solutions used will depend entirely on your situation and what each partner is willing to do to make sure the process runs smoothly. It may also depend on what property can be liquidated with ease to make the transition smoother, or what your partners and vendors are willing to do to help you free up funds. Your lawyer may be negotiating with far more people than your spouse’s lawyer before the entire deal is done.
Do Farmers Need Prenups?
Prenups can save farmers a great deal of heartache. If you own a farm and have yet to get married then considering one is one of the best things you can do for your family and your future.
Setting up a farming prenup also requires some special considerations, since prenups must be fair to both parties, and all the same issues which plague farm divorces similarly plague attempts at setting up prenup agreements.
Yet setting up a prenup is almost always universally less expensive and less stressful than negotiating a divorce.
Reach out to the family lawyer of Saskatoon to get the process started today. It’s a step you will not regret taking.
Get Help Today
Call (306) 653-7757 to get help from one of our experienced family farm lawyers.