As farms are often both a family home and a working business, with land, buildings and income closely interconnected it is particularly important to put in place strong succession plans. Creating a prenuptial agreement does not mean a relationship is set to fail. For many farming and rural families, a carefully prepared agreement gives the couple and wider family greater clarity. It can reduce uncertainty for everyone impacted if the marriage does break down.
A prenuptial agreement for farmers can help protect wealth that has taken decades (or generations) to build. My experience shows this can include agricultural land, a farmhouse, commercial buildings, machinery, shares in a family farming business, investment property or assets held in a family trust. An agreement can also support wider farm succession planning when parents or grandparents intend to pass assets to the next generation.
Such concerns are real: what would happen to the farm or family business if a marriage ended? A prenup cannot remove every risk, but it can record the couple’s intentions, bring greater certainty and help to ring-fence inherited assets or property gifted by the wider family.
Today, a prenuptial agreement is not automatically binding in England and Wales, and the Court has the final say over financial arrangements on divorce. In 2010, the Supreme Court said that judges should take a prenuptial agreement seriously provided certain conditions were followed, if both people signed it freely and understood what it meant (but the Court can decide not to follow it if doing so would be unfair).
Of course, the law can change. The UK Government is currently considering proposals that could make some prenuptial agreements legally binding, provided those criteria are followed. For now, it remains important that the agreement is carefully prepared and that both people enter the contract freely, with a clear understanding of what it means.
A well-drafted farming prenuptial agreement can sit alongside your Will, trusts, partnership or shareholders’ agreement and wider agricultural asset protection plan. It can help couples discuss difficult issues calmly before getting married, giving the wider family reassurance and reducing uncertainty if the relationship does end.
Prenups can be particularly helpful for second marriages, couples marrying later in life, families wishing to provide for children from an earlier relationship, or relationships where one person brings substantially more wealth. The agreement should also be reviewed after major life changes such as:
Talking about a prenup does not mean that you expect your marriage to fail. It is a practical part of inheritance and wealth planning for farming families, helping everyone understand where they stand. If you are planning a wedding, transferring family wealth or reviewing the future of a farm or rural business, our specialist Family Law team can help you begin the conversation and prepare an agreement tailored to your circumstances.
There is no obligation to get in touch with Sally Stanway to explore your options:
Elizabeth Hassall has decades of experience in family law matters. As a farmer’s daughter, she has experience of farming and rural business situations and the impact that a divorce might have on liquidity. She also completely understands that extended family members might also rely on a farming business, and can handle such estate complexities sensitively and diplomatically.
Settlement agreements, contracts, Employment Tribunal support, disciplinary and discrimination.
Buying and selling property and land, lease negotiations and investments.
For businesses including shareholder disputes, and for individuals such as probate.
If you’ve got a legal enquiry, call us on 01244 318 131 or fill in our contact form to complete a short form, and a bl**dy brilliant lawyer will be in touch.
After a refreshingly different new role? Check out our current vacancies or contact us in complete confidence to explore possible opportunities at recruitment@law.uk.com
RECRUITMENT AGENCIES/PSL
Recruitment agencies – heads up, we do not accept speculative CVs including those responding to roles on our website. We work directly with a PSL and will not accept liability for fees or commission if we employ a candidate who applied directly to us, or who was put forward by an uninstructed agency.
At HM3 Legal, we believe in clarity, not complexity. Whether you are seeking legal guidance for your business or navigating a personal matter, our team is here to provide straightforward, expert advice.
