Assets and Divorce - More Uncertainty

The division of assets on divorce has always been a lively area for litigation and this is particularly so where the assets comprise inherited assets in the form of family farms.

In a recent case, prior to their divorce a husband and his wife of 18 years worked in partnership on the farm he had inherited. On divorcing, the wife sought a settlement of forty per cent of the family assets (which were over £2m) plus a lump sum towards their children’s school fees.

The husband wished the farm to be passed down to the next generation and offered £340,000 plus child maintenance and school fees, the offer being limited by his inability to raise capital without selling the farm.

The judge awarded the wife £575,000 based on the wife’s reasonable needs for housing and income and to provide a fund for the children’s school fees. While this was a substantial departure from the more common ‘50/50’ approach, a larger award would have necessitated the sale of the farm and left the husband without the wherewithal to make a living.

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