Dividing farms and land

Dividing farms and land during a divorce can be complicated.

It’s important to get advice from a legal professional who understands these complexities, while also considering emotional factors like sentimental attachment and the challenges of a relationship ending.

There are a few options for dividing a farm, such as:

• Buying out the other person
• Selling the farm and splitting the money
• Transferring ownership, with the option for one person to rent the property
• Setting up a limited company or partnership to manage the land and assets

When deciding how to split a farm, a few key factors are considered:

• The financial needs of each person
• The contributions each person has made to the farm
• How much of the farm counts as a ‘matrimonial asset’

How are farms treated in divorce?

When a couple divorces, farms are treated like businesses, so the same rules for dividing a business apply. This involves figuring out the value of each person’s share and whether the farm counts as a ‘matrimonial asset.’ Valuing ownership can be complicated, as it takes into account both the work and money each person has contributed. Usually, the couple will agree to hire an agricultural expert to assess the farm’s assets.

Farms can be particularly tricky in a divorce. They might be worth a lot of money but generate only a modest income. Many farms are also owned by multiple family members, which can make dividing them even more difficult when a couple separates.

If a couple has a pre-nuptial or post-nuptial agreement, it can make things clearer by outlining ownership and helping to settle the divorce fairly. These agreements are especially helpful when income and assets are tied to farming.

How is land treated in a divorce?

Land is treated like any other asset in a divorce, along with things like property, pensions, and income. There isn't a set way to divide everything - it depends on factors like:

• The total value of each person’s assets
• The needs of both people and any children involved
• The court can make different decisions about land, such as transferring ownership, selling it and splitting the money, or delaying the sale

How can you approach negotiating an agreement over farmland?

As the legal aspects of dividing farmland can be complex, you will need an experienced legal professional to help you negotiate a settlement. You can do this through mediation (though a mediator can’t make your agreement legally binding), solicitors or through a service like amicable.

amicable is a couple’s service led by experienced legal professionals who help a couple come to a financial agreement. This can be to do with anything from farmland to children arrangements. We are a fraction of the cost of solicitors and can help you come to an arrangement avoiding the tension that can be caused by using lawyers.

How can you get your agreement made legally binding?

To make your agreement legally binding, you will need a legal professional to draft a ‘consent order’ and ask the court to approve it. Once approved by the court, the consent order is binding on both parties and protects your financial interests in the future. If your agreement is not legally binding, a court cannot enforce it if there are disagreements later.

amicable can help you negotiate an agreement and draft it into a consent order.

Does the recent government budget change how you should split farms and land in divorce?

The 2024 Autumn Budget proposed a reduction in tax relief on inherited land from April 2026. This may impact your estate planning and change how you decide to split any land you own during your divorce or separation.

Everyone’s circumstances will be different, and it’s recommended that you get specialist tax and financial advice. For financial advice and coaching, our partners at Octopus Money can help at an affordable price of £299. Meet with an expert for a free intro call - no strings attached.

Above all, we suggest speaking to professionals together, so you can both ask any questions and receive the same answers. This can reduce confusion, tension and stress during separation and divorce.

Once you’ve received advice, amicable can help you come to your agreement and manage your entire separation process with the court. Our services are designed solely for couples. You’ll have your own dedicated Divorce Specialist, who remains neutral but can guide you to the right outcome for both of you.