Many rural couples in North Dakota run family farms. In some cases, one spouse might have a multi-generational interest in the farm. Other times, they may have invested jointly in the property, although one spouse may work primarily off the farm to ensure there is enough revenue to keep the operations sustainable.
Those preparing to divorce a farmer in North Dakota may have questions about their rights. They may worry about their spouse attempting to deny them their fair share of the farm’s value or using the irregular income generated by agricultural work as a basis to avoid financial support obligations. Spouses married to farmers who anticipate a divorce often need assistance understanding their rights.
Is the farm marital property?
Determining whether or not the farm itself is subject to property division rules is often an important step in a rural North Dakota divorce. Those who come from farming families may run one small portion of a larger enterprise or may have taken over family operations when their parents or grandparents retired.
In those cases, one spouse may have owned the farm outright before the marriage. The farmland and the home where they live might actually be the property of a trust established by one spouse’s family. The farm may be illiquid, which means immediately dividing it isn’t realistic.
The spouse who farms as their primary source of income needs to retain the property to continue their career. However, it may be possible to arrange for an ongoing settlement that requires regular payments from the farm-owning spouse to the spouse who leaves.
If the couple acquired the property during marriage, then splitting equity, possibly by refinancing, might be an option. Beyond the land itself, there is also the equipment and any livestock present on the farm to consider when preparing for equitable property division negotiations.
Documenting the standard of living during the marriage and any under-the-table support or pay arrangements established by those running a family farm with their parents, cousins or siblings may be necessary. The process of securing a fair asset division settlement is typically much more complex when divorcing a farmer than it is when divorcing someone who has more predictable income and whose primary residence is not directly tied to their work.
Financial documentation and other evidence can play an important role in a complicated farm-related North Dakota divorce. Discussing concerns about an upcoming rural North Dakota divorce with a family law attorney can help spouses take the right steps to protect themselves.