A leading family law firm warns farming couples they may face complex divorce cases due to the nature of assets involved.

Divorce rates are on the rise among over 50s couples as more ‘silver splitters’ are separating after around three decades of marriage. According to the Office of National Statistics, the divorce rate among those aged 50 plus has risen by 75 percent in the past 20 years, while falling across the rest of the population.

Lyn Ayrton of family law firm Lake Legal says the statistics underline the need for legal protection particularly for older couples in the event of a split:  “Farming couples seeking divorce face a unique set of challenges that can have far-reaching implications for their wider families. The structure of farming businesses are often complex and usually involve various strands of family ownership, especially if a farming business has been passed down the generations. It is rarely a simple case of selling the family home and sharing out the assets.”

Lake Legal advise couples to seek specialist legal support due to the complexities involved. They argue it is essential to differentiate between ‘matrimonial’ and ‘non-matrimonial’ property. Inherited assets or assets which were in existence and owned by one person before the marriage, such as the farm itself,  all need to be given special consideration.

Ayrton adds: “Usually farms provide a family home for the husband and the wife during their marriage. Typically the husband manages the farm, and the wife will support the farming business, as well as a more traditional role of bringing up a family and homemaker. In the event of divorce, the difficulty is how to provide fairly for the financial needs of the wife without jeopardising the farming business and also preserving it for future generations.”

A spouse’s claims on divorce in such circumstances may be calculated by looking at his or her needs, established against the background of the standard of living enjoyed during the marriage. This often means that the farmer’s spouse can still receive the means to meet ‘reasonable’ housing and income requirements, particularly after a long marriage, but not an equal share of the overall assets.

For farmers facing the prospect of later life divorce, they need to fully consider how to raise a lump sum to settle any capital claims while keeping the farm business going. Nest eggs and lifetime savings intended to finance the couple’s happy retirement together may be forced into play to fund a divorce settlement instead. Liquidity is usually the biggest obstacle facing a divorcing farming family, as many businesses are asset rich but cash poor.

Concluded Lyn Ayrton: “When unexpectedly faced with the prospect of divorce, the older farmer may have to seek a new mortgage at a time when they are thinking about retirement and passing on assets on to the next generation. All of this impacts on profitability and the future of the farm.”