Protecting your Farm Assets During a Divorce

Farming is a complicated business. You have land, equipment, livestock or stored commodities, and family dynamics that are all involved. Often times these farms are passed down generation to generation. Protecting your farm assets during a divorce is more of a topic like estate planning that consists of planning ahead.

Business Planning

First, you should look at how your farm is structured. Is it a formal business such as a corporation or LLC? Are there multiple members or shareholders?. Do you have articles of incorporation or operating agreement in place that specifies how your interest is treated in the event of a divorce.?

You need to know the answers to these questions because having a formal business structure in place can help keep the farm from being divided in a divorce.

Estate Planning

Second, you should make sure you have proper estate planning in place that can keep the line of succession for farm ownership in place. For instance a trust can keep the ownership out your name and prevent farm land from being included as a marital asset.

Prenuptial Agreements

Third, you can enter a prenuptial agreement that accounts for the farm assets. A prenuptial agreement can set out that your farm assets are non-marital property or it can provide ways on how it would be valued or distributed in the event of a divorce.

Contact an Attorney

Ultimately, dealing with the distribution of a business such as farm is complicated and you should contact an attorney if you are a farmer and need help with estate planning, business planning, or a divorce.