LATEST statistics show that 42% of marriages will end in divorce.

In conjunction with this process will be the need to resolve parties’ financial affairs and some of these will undoubtedly involve farms and farming assets.

I’m often asked by clients to advise on how a court would approach a case which involves trans-generational faming assets.

Inevitably, the answer is not a straightforward one.

Farming cases upon divorce can be more difficult to deal with for a number of reasons.

• Firstly they are often income light and capital heavy which means that the value of the property can be very substantial when compared with the income derived from them.

• They are often ‘lifestyle businesses’ and much of the benefit of running the farm is the lifestyle that goes with it, which the farms support.

• More often there is a wider ownership amongst a variety of family members and this ownership can be complicated by farming tenancies, corporate ownership and trust ownership. • All of these factors can make extracting capital more difficult and there is often a lack of liquidity.

In terms of the courts’ approach, the first step in farming cases is for the farm to be valued.

Typically this is undertaken by a single expert appointed by both parties through their respective solicitors.

Once the value of the farm is ascertained, the next step is to decide how all of the assets should be divided.

In terms of the court’s approach, there is no particular difference between how a farm is dealt with on divorce, as against other businesses.

It is uncommon for a court to order that an entire farm has to be sold, particularly in the circumstances where it has been inherited through generations.

It is usually a question of raising capital for housing purposes.

Occasionally though, a court does order a farm to be sold, particularly if it is not viable as a business.

If the farm is held in trust, then the courts’ powers and approach depends on the type of trust involved.

Given the potential complexities, the best piece of advice for clients is to consult a specialist divorce lawyer at an early stage.

It is often possible to negotiate a settlement through lawyers without the need for court proceedings, but in the event that proceedings are necessary, the early instruction of a lawyer will ensure that the case starts off on the right track.

If you would like to discuss your situation or find out more details please contact Zoe Porter on 01823-362875 or send an e-mail to zoe.porter@everys.co.uk