Many farm owners have a personal, emotional, and familial attachment to their farm. For this reason, it is especially important for farm owners to consider protecting their farm upon marital breakdown. Specifically, it is important to have some type of contract which sets out that the farm is meant to be kept within the family for generations to come.
This article hones in on a situation where one of the parties in a couple is a farm owner. Often, farm owners would like to keep their farm within the family. For that to happen, a farm owner may consider signing a marriage contract retaining full ownership of the farm.
Even if a farm owner is reluctant to sign a marriage contract, they may consider a “Family Farm Legacy Agreement” which is essentially a marriage contract that deals specifically (and possibly, only) with the farm. This is especially important as a spouse of the farm owner may acquire an interest in the family farm upon marital breakdown if they have contributed to the maintenance and work done on the farm. For this reason, this article recommends paying your spouse for any work that is conducted or completed on the farm during the marriage. This article makes many other recommendations and provides tips for farm owners who are considering marriage.
Takeaway:
- If you are a farm-owner ensure your family farm is protected. Consider entering into a Family Farm Legacy Agreement and paying your spouse for any work they have conducted on your farm during the marriage.