How are farms valued for divorce?

Farms can constitute a significant portion of a couple’s assets. They are often inherited and passed down through generations, generating significant sentimental value as well as financial. Given the family ties attached to farms, they often also have complex ownership structures, with siblings or other family members having various competing interests. 

It is therefore crucial to obtain an accurate valuation, preferably from an expert who has particular experience in valuing farms. Similarly to other businesses, a farm may be valued on a net asset or income basis. Given that many farms are ‘asset rich’, owning land, machinery, buildings, and livestock, it may be more appropriate to value one on a net asset basis. The method chosen may have a substantial impact on the valuation, especially for farms which are asset rich but only have a modest stream of income.  

Given the complexities which may arise when valuing a farm, instructing a chartered surveyor as a single joint expert may be the best option.

If you are considering or going through a divorce and you or your spouse own a farm, contact Vardags today for a free initial consultation with one of our expert divorce solicitors. 

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