One in four marriages in the UK ends in divorce. Farmers are
particularly vulnerable to marital breakdown because few
occupations are more stressful, and stress puts severe strain on
personal relationships.
The reasons farmers suffer high levels of stress are, of course,
well-documented. Financial worries, long working hours, isolation,
and complex paperwork all add to anxiety levels.
According to Christopher Jones, national co-ordinator of the
Farm Crisis
Network, which helps families in farming and related activities
who are experiencing problems, marriages can suffer additional
pressure if one partner - usually the wife - has to find a job away
from the farm to bring in extra money. Her husband may then be
burdened with both a heavier workload and less practical and
emotional support.
Adultery is a common trigger for divorce and the farming
industry is as susceptible as any other sector of society. In the
rural radio soap
The Archers,
David and Ruth Archer's marriage has been taken to the brink this
autumn by David's friendship with an old flame and his wife's
subsequent flirtation with stockman Sam. Although they are
attempting to patch up their battered relationship, the couple's
marriage is still not fully repaired.
Double-whammy
In the agricultural world, divorce is often a double-whammy. A
farmer risks losing not only his family but also his livelihood.
Many farmers might be cash-poor, but given that even modest farms
often have a significant market value, a divorce could mean the
sale of the business and all its assets.
Such a scenario is potentially financially ruinous not only for
the divorcing farmer, it can also impact on others such as farm
workers who, in addition to losing their job, may lose their
accommodation. Although it is not as common as it once was to pass
a farm on to the next generation, many enterprises are still handed
down to younger family members and a divorce could frustrate those
plans.
When any business is a family affair, the valuation and division
of the assets has traditionally been an area for argument when
marriages break down. This has come to the fore in recent years
with the courts' renewed emphasis on "fairness" and the "yardstick
of equality" when dividing assets. Farming cases present particular
problems, not least when the farm has been passed on through a
number of generations.
A recent divorce case to pass through the courts involved a
couple who had spent almost 20 years of their married life together
running the family farm. The farm had been inherited by the husband
and been in his family for many generations.
Financial settlement
The farm was acknowledged to be more than simply a source of
income to him. Although the wife didn't want it sold, the financial
settlement she was seeking would almost certainly have resulted in
a sale with devastating implications for her husband and
others.
The judge ordered that the husband pay a lump sum to his wife,
which met her housing and income needs. This represented
approximately a quarter of the family assets and the arrangement
enabled the husband to keep the farm.
The judge made it clear that while in some cases the fact that
the property was inherited might count for little, in others it
might be "of the greatest significance" so that "fairness may
require quite a different approach".
On the particular facts of this case, he felt several points
were relevant. These included the fact that the greater part of the
family's assets represented the farm, which had been in the
husband's family for more than four generations. The enterprise had
been brought into the marriage with the expectation that it would
be retained as an operating family farm.
The treatment of inherited property is only one potential
complication that can arise in farming divorce cases.
Value
There may be an issue as to the manner in which the farm
business is carried out, which might affect the value as well as
the liquidity of the assets available to the parties. It may be
that the business operates as a
limited company,
partnership or trust or a combination of the three. This will
require consideration of the interests of third parties and
shareholders or partners, as well as those of the separating
couple.
It is vital to establish not only how the farm business is
carried out, but also exactly who owns what. Particular care is
needed when considering tenancies - whether they have been created
formally or informally - because the nature of the tenant and
tenancy will affect the value and liquidity of the assets available
to the divorcing couple.
The assets that will need to be valued and taken into
consideration include not just the obvious land and property, but
also livestock, machinery and equipment. It may also be necessary
to factor into the valuation exercise any holiday lets, timber,
mineral rights and income deriving from grants or compensation
schemes. When looking at the farm balance sheet, it may be
appropriate to make adjustments depending on the time of year to
take account of harvest and trends in crop prices.
Tenancy
The least valuable farms are often those farmed under a tenancy,
but even these can have "hidden" value. It may be that the tenant
can purchase the land at a preferential price, which may be a
relevant factor to take into consideration.
Equally important is the potential development value of a farm
or estate. This is of increasing importance and it should be
expected that development and even "hope" value will be
investigated, however remote the prospect may appear at the
time.
It is said that the five major events that can severely impact
on a farming family are the five Ds - death, disability, disaster,
divorce and disagreements.
Most would agree that only divorce and disagreements can be
avoided.
Counselling is one way to try to overcome marital rifts, but for
many farmers this might seem too radical a step. In which case,
contacting a support organisation that understands the particular
pressures of farming today, such as the Farm Crisis Network, could
be the answer.
Another solution to marital crisis could be to "start over
again", by which I mean a couple whose marriage has been brought to
its knees by the various stresses of modern agriculture might
attempt to salvage their relationship by seeking out new pastures
in the form of farm diversification - and seek them out together.
This raises the possibility of refreshing not just their marriage
but their business as well.
However, if a farming marriage is beyond saving, then there is
little alternative but to engage the services of a specialist
divorce lawyer.
He or she will try to ensure the parties reach an amicable
arrangement between themselves, rather than encouraging them to
fight tooth and claw for their rights in the courts.
Of course, the best way to circumvent these complications and
potential pitfalls is to avoid getting divorced in the first place.
Easier said than done, I know, but many couples who experience
problems manage to overcome their difficulties and stay together,
as Ruth and David Archer look set to do.
Neil Hobden is a partner with Birmingham-based matrimonial
law firmBenussi &
Co
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