Divorces involving farms can be emotionally and financially complex. Unlike other assets, a farm is often a home, a business, a livelihood, and a family legacy. Understanding how farms are valued in divorce is essential to achieving a fair outcome while protecting the farming enterprise where possible.
The legal context in England and Wales
In England and Wales, divorce settlements are guided by the Matrimonial Causes Act 1973. Courts aim for a fair outcome, considering factors like:
- Income, property, and resources of each spouse.
- Financial needs and responsibilities.
- Standard of living during the marriage.
- Ages of the parties and length of the marriage.
- Contributions (financial and non-financial).
- Welfare of any children.
Dividing assets equally is often a starting point but is not automatic. In farming cases, fairness often requires flexibility and a more nuanced approach.
Why farm valuations are particularly complex
From a solicitor’s perspective, farm valuations present challenges that do not arise in most divorces. Farms are typically asset-rich but cash-poor, with substantial value tied up in land and buildings but limited disposable income.
Additional complications include:
- Inherited land or family farms brought into the marriage.
- Multi-generational ownership or occupation.
- Complex business structures such as partnerships or limited companies.
- Diversified income streams (holiday lets, renewables, livery, etc.).
Courts must balance the non-farming spouse’s needs with the reality that selling land or increasing borrowing can harm the farm’s viability.
What a farm valuation will usually cover
In divorce proceedings, the first step is to establish what assets are in the pot together with exchanging full and frank financial disclosure. To ascertain the value of a farm, a valuation may need to be undertaken. A farm valuation will usually encompass:
- Agricultural land and buildings.
- The farmhouse (which may be valued separately).
- Livestock, crops, and quotas.
- Plant, machinery, and equipment.
- Subsidies and entitlements (where still applicable).
- Any diversified or commercial elements of the business.
Crucially, liabilities such as mortgages, secured loans, overdrafts and tax must also be factored in to establish the net value.
The role of the expert valuer
In most cases, the court will expect the parties to jointly instruct a single joint expert, usually a chartered surveyor with specific expertise in agricultural and rural property.
The expert’s duty is to the court, not to either party. Their report can be decisive in negotiations and, if necessary, at a final hearing.
Matrimonial and non-matrimonial assets
One of the most important issues we advise clients on is whether the farm is a matrimonial or non-matrimonial asset.
- The family home is generally treated as matrimonial in nature, which may therefore include the farmhouse.
- Land acquired during the marriage is usually matrimonial.
- Inherited or pre-marital farms may be classed as non-matrimonial.
However, in England and Wales, even non-matrimonial assets can be shared if required to meet the other spouse’s needs, particularly after a long marriage or where there are children. This often comes as a surprise to farming families.
Avoiding a forced sale
While the court has the power to order a sale, judges are often reluctant to force the sale of a working farm if alternative solutions are available. As solicitors, we frequently explore options such as:
- One party retaining the farm and compensating the other.
- Offsetting the farm’s value against pensions or other assets.
Creative structuring can often protect the farm while still achieving fairness.
Common pitfalls in farm divorce cases
In our experience, the most common difficulties arise from:
- Unrealistic expectations about ring-fencing inherited assets.
- Disputes over valuation assumptions.
- Underestimating liquidity issues.
- Failing to obtain early specialist advice.
These cases can quickly become expensive and entrenched if not handled carefully.
The importance of early specialist advice
Farm divorces require close collaboration between family solicitors, agricultural valuers, and accountants. Early advice allows realistic options to be explored before positions harden and litigation escalates.
From a family solicitor’s perspective, the goal is not simply to divide assets, but to reach a solution that is fair, workable, and sustainable for the future—both for the individuals involved and, where possible, for the farm itself.
Conclusion
Farm valuations in divorce proceedings in England and Wales are complex and highly fact-specific. They require specialist valuation evidence and careful legal analysis. While the court’s focus is on fairness, it recognises the unique nature of farming businesses and the importance of preserving them where possible. With the right advice and approach, it is often possible to achieve a settlement that respects both financial needs and often the multi-generational nature of farms.
If this is something you need advice on then please get in touch with our Family Law team.