Division of assets can threaten the sole source of income
Legal advice for farmers
Dear Reader,
I am so very sorry to hear this. What happens to the family farm in the event of a marriage breakdown is a crucial issue among farmers in recent years, and it is one I receive queries about more and more, year after year.
Since the Family Law (Divorce) Act 1996 came into force, the Irish courts have granted over 100,000 divorces. One of the key issues the parties must consider, when applying for a divorce or entering into a separation agreement, is the division of assets.
For farmers such as yourself, the main assets are usually the family home and the family farm. The court in Ireland can order assets to be transferred or sold in the event of a judicial separation or a divorce.
This is done to ensure that adequate or “proper” provision is made for both parties, and of course for any children that arise from that relationship.
Sometimes, the only option may be for lands to be sold in order for capital to be raised for the purchase of an alternative home for the spouse and any children. It is important to remember that divorce does not automatically entitle a spouse to half of anything.
It is hard to put a figure on proper provision, as it varies from case to case, and it takes into account a number of factors, such as the financial means of the spouse in question, and the financial needs of any children involved.
In the event of a marriage breakdown, I would advise you to seek the legal advice of a solicitor as soon as possible, to ensure that the family farm is adequately protected.
A spouse can claim that they contributed to the farm in some way, by either physical or financial means. It is often a good idea to attempt to reach an agreement on the division of assets before it ends up in a courtroom.
The family farm causes major difficulty in divorce cases, as it is usually the primary or often times even the sole source of income. Agricultural land has a considerable capital value, but on the other hand, it has a limited earning capacity.
It is rarely a sustainable option to divide the family farm, as most farms in Ireland are too small to be divided for both parties to achieve a viable income.
One option would be to raise a lump sum to provide the other spouse with the means to find alternative accommodation.
This can also be done by means of obtaining a mortgage or by investigating whether some portion of land can be sold without impacting the running of the family farm.
Perhaps enquiries could be made to the relevant planning authority to see if planning permission could be sought for sites.
It is important to be able to provide the court with either a number of viable options or a mutual agreement on how to divide the assets.
Otherwise, the court may have no choice but to grant an order for part or all of the farm to be divided or sold. To a farmer, the family farm can be their home, their identity, and their place of work.
The threat of losing this, or having it be divided up by divorce proceedings, can be incredibly distressing, and it is important to ensure that you seek legal advice as soon as possible, and try to put in place an agreement to ensure that the family farm can be saved.
