Farming Pre-nups

Protecting the family farm’s future

Perhaps expressing the desire to draw up a prenup is not the easiest thing to whisper into the ear of your intended. However, if you are a farmer and want to ensure the survival of your farm should the course of love not run quite as smoothly as you hope, it would be wise to face this issue sooner rather than later.

Livelihoods at risk

Farming families dread divorce more than most with good reason. As well as the emotional turmoil resulting from it, a divorce has the potential to put the livelihood of many members of the extended family at risk if they are all involved with the farm. A pre-nuptial agreement can protect the family asset, which has often been passed down through many generations to ensure its survival for future generations of the family.

Clarity and peace of mind

Pre-nuptial agreements provide a clear agreement designed to offer clarity and peace of mind for both parties. They set out ownership of a couple’s belongings (including money, assets and property) and explain how it will be divided in the event of the breakdown of their marriage.

Transparency between couples

Pre-nuptial agreements can provide transparency between the couple if there are assets / property which would be hard to split evenly, such as a family farm.

However, it should be remembered that the Court still has the final say and is able to override a pre-nuptial agreement. The Court must consider all the circumstances of the case and decide on what is a fair outcome. Having said that, recent case law has shown that a properly drawn up pre-nuptial agreement is an increasingly important factor that the Court will take into account.