Des Moines Agricultural Divorce Attorney

Dividing Your Farm During a Divorce in Iowa

Protect your farmland DURING DIVORCE

During divorce, all marital property must be divided. The manner in which property is divided can have lasting financial impacts on both parties. When family farms or agricultural lands are involved, the stakes are even higher. Courts will rarely divide a farm during the divorce process. Instead, one spouse may keep the farm and forgo other marital assets in order to make the division fair.

When making property division determinations, the value of each marital asset must be determined. Farmland valuation is particularly complex. The land itself, the value of structures and the value of machinery, other farming equipment, crops and livestock must be established. Depreciation must be taken into account and the value of any futures contracts must also be determined.

Inherited property is excluded from the marital estate. If you inherited farmland during your marriage, we will fight to have it removed from the marital estate and keep it off the bargaining table.

Can A Prenuptial Agreement Protect Your Farm?

Yes, a prenuptial agreement can be an essential tool in protecting your farm from being divided in the event of a divorce. Farms often hold significant financial and sentimental value, especially if they have been passed down through generations. By establishing a prenuptial agreement before marriage, you can outline specific provisions that preserve the farm as separate property. This can help prevent the division of farmland, equipment, and other agricultural assets that are crucial to the operation of the farm. In Iowa, prenuptial agreements are legally enforceable as long as they meet certain criteria, such as full disclosure of assets by both parties and the agreement being fair and reasonable at the time of enforcement.

What Happens If Your Farm Has Significant Debt?

When a farm carries substantial debt, it adds another layer of complexity to divorce proceedings. In Iowa, marital debts are divided equitably, which means the court will consider factors such as the length of the marriage, contributions of each spouse, and future earning potential when allocating the responsibility for farm-related debt. Typically, the spouse who retains ownership of the farm will assume the bulk of the debt, but this can be balanced with other asset divisions to ensure fairness.

In cases where debt significantly outweighs the value of the farm, the court may explore options like restructuring the debt or other means. It is critical to have a strategic approach in negotiating debt division, especially when dealing with agricultural loans, lines of credit, or other financial obligations tied to the farm.

How We Can Help

At The Law Offices of Mark R. Hinshaw, our Des Moines divorce lawyers are well-versed in the nuances of farmland valuation and asset protection. We work closely with outside financial professionals, including forensic accountants, CPAs, land appraisers and cash flow experts to accurately value our clients' farm and agricultural lands. Once we understand the value of the marital estate, we are able to negotiate property division agreements that protect our clients' farming properties.

It is in your best interests to consult with experienced attorneys who know the law and know how to protect your farming and agricultural properties during divorce. At The Law Offices of Mark R. Hinshaw, we help clients keep family farms in the family. Located in West Des Moines, our divorce attorneys provide clients with the strong, effective legal representation during the divorce process.

Contact us to reach The Law Offices of Mark R. Hinshaw at (515) 200-7571. Consultations are free.