Once upon a time the divorce rate in the United States was minuscule. Even as the rate of divorce began to climb among urban dwellers, the divorce rate for farm couples remained low. Around 40 years ago, however, this began to change, and the divorce rate for farm couples began to increase. Today the rate for farmers is about the same as for non-farmers.
For any couple with a family-owned business divorce can be complex. However, Minnesota residents may be interested to know that farm families have unique social and financial relationships, as well, making it difficult for them to separate. For one, there may be emotional ties to the farm and its assets. This can make it hard to divide big-ticket items, like real estate, without compromising the integrity of the farm.
The added complication associated with the unique property relationship can also become intertwined with any blame the spouses harbor against each other for the marriage ending. Increased stress associated with the divorce and the fear of losing a business that may have been in the family for multiple generations can increase the resentments between the parties. This only adds to an already complex and emotional situation, making compromise exceedingly difficult.
One way to avoid a property dispute before it begins is to sign a prenuptial agreement. Such an agreement concerning the ownership of farm assets, or any family-owned business assets, can simplify the division of business property later on. It is also important to discuss the agreement with a professional and consider "what if" scenarios.
If for some reason nothing preemptive has been put in place, make sure that the person assisting with the divorce has experience with divorces involving family-owned businesses, and complex asset division. Anything less could endanger an invaluable family possession.
Source: Iowafarmertoday.com, "Reducing the impact of divorce," Dr. Mike Rosmann, Sept. 28, 2012
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