Farm Divorce Lawyer for the Division of Farmland, Real Estate & Agricultural Businesses

When an active agricultural business or farm is included in a divorce, there are significant factors that must be addressed, beginning with the valuation. Placing a value on a farm or company can be challenging.

There can be different valuations placed on a farm conditioned upon the use of the land as farmland or otherwise.  As an example, if the farm is valued as an ongoing farming operation, the value may be determined by taking the expected future income from the business and then discounting this income stream by some imputed interest rate factor to arrive at the value of the farm.

Alternatively, many farms now will have a higher valuation based solely upon the value of the land.  This is especially the case in Northern Illinois, where many farms that were once “in the country” now abut growing subdivisions.  In these cases, the value of the farmland for new subdivision or commercial real estate purposes may be significantly higher than the value of the land as used as a farm.  If this is the case, then the value of the farm may be equal to the value at which the land and farming assets could be sold.

In either of these cases, an independent land appraiser and/or business valuation expert would need to be retained in order to determine that value.  I help clients in these matters by working with such experts to determine valuations.

When marriage and farm succession planning are done correctly, the likelihood of contentious disputes and harm to a farm operation during a divorce significantly decreases. Many farmers are now using prenuptial agreements, trusts, and other comprehensive succession planning to ensure that family farms are transferred from one generation to the next as intended, as well as to minimize potential estate taxes.

Ideally, such succession planning should be done either before marriage or at least before a divorce is contemplated.  If you are the owner of a family farm, you may wish to seek the counsel of a family farm succession lawyer to protect your interests.

In many cases, one of the spouses may have inherited a family farm, or otherwise purchased the farm before marriage.  In these cases, I am available to advocate strongly on behalf of either spouse – either that the farm is not a marital asset subject to division (if representing the spouse who inherited the farm), or that that farm has become martial property by virtue of time, expenditures, and (in some cases) promises that have occurred regarding ownership (if representing the other spouse).

The outcome of these matters can be agreed upon by the parties, or they may be left to a court.  If the spouse who did not inherit the family farm is entitled to some part of the value of the farm, then there are a variety of mechanisms available to satisfy the division or property, including:

• Selling the farm. This usually is a last resort in the case of family farms when the family member desires to continue farming.
• Satisfying a spouse’s property entitlement out of other assets. As an example, the spouse may receive the rights to vehicles, retirement account assets, or other assets.
• Pay off a spouse’s share over time. The family member spouse might also pay the other spouse over some time period for such share.
• A combination of the above. Some farmland may be sold, and other assets may be given to the spouse, as well as payments may be made over time.

Regardless of whether you are the spouse who inherited a farm or if you are the other spouse, I can help you understand and advocate for your full property rights.

Dividing real estate and farmland can be highly fact-specific and requires significant effort and resources to ensure a fair outcome. When divorce arises, care should be taken to minimize the negative impact on a family farm. As a zealous advocate and experienced negotiator, I can help navigate the challenges associated with divorce involving a farm, including (but not limited to):

• Using business valuation techniques and consulting with experts (as needed) in seeking a fair valuation of all marital assets;
• Negotiating cash payouts;
• Constructing rental agreements and options to buy land awarded to a non-farming spouse;
• Accounting for tax consequences related to assets; and/or
• Tenaciously advocating for a client’s rights through every step of the process.

As a Rockford divorce attorney with decades of legal experience, I handle nearly all types of divorce and asset division cases, including those involving:

• Farmland
• Family Farms
• Tenancy Issues
• Livestock
• Agricultural Products
• Crops
• Equipment
• Real Estate