Let An Omaha Farm Divorce Lawyer Help You Protect What Matters Most
Divorce is rarely just about ending a marriage, especially when it involves complex, high-value assets such as a farm. In a state like Nebraska, these assets are not just land and property. They are often multigenerational businesses with a deep legacy.
A farm divorce can come with unique financial and emotional challenges, from dividing inherited land and assets to valuing the business and its future income. Our team at Walz Law Offices has extensive experience in high-asset and agricultural divorce cases. As your divorce lawyers, we will provide the compassionate guidance and aggressive advocacy necessary in the fight for your rights and your financial security.
What Makes A Farm Divorce In Nebraska Different?
A working farm involves numerous assets, including shared equipment, livestock and land that may have been in the family for generations. As your divorce attorneys, we will work to protect your interests in the face of issues such as:
- Commingled assets: Nebraska courts generally consider property you inherit as separate property. However, it can become a marital asset if you or your spouse used marital funds to maintain it or make improvements that increased its value. Our legal team will help you trace the history of these assets to show which parts are separate and which have become shared.
- Assets placed under a trust: Many families use trusts to protect land and pass it down to the next generation. While beneficial, they can potentially complicate a divorce. Putting a farm under a trust means the trust has direct “ownership” over the property, rather than you or your spouse. Our divorce lawyers will analyze the trust’s structure to help you understand how it might affect the division of property.
- Protecting multigenerational assets: Saving a family farm requires a strategic approach. We know the pressure this can create, and we work toward a fair and equitable division. We can discuss options such as a buyout agreement, where one spouse keeps the farm and buys out the other’s share, or discuss prenuptial and postnuptial agreements to clarify property rights and protect family land.
A farm divorce is a difficult journey, and the stakes are high. It’s a fight not only for your financial future but also for the legacy you have built. Our legal team will stand by your side and provide the guidance you need to secure an ideal resolution.
The Difference Between Commercial And Family Farms
The business structure of the farm can have a significant impact on the outcome of a divorce. For instance, a family farm is often a sole proprietorship. A commercial farm, on the other hand, is usually a corporation or a limited liability company (LLC). This means they have different tax structures and business expenses, which courts may consider when deciding on property distribution and spousal and child support.
Our divorce attorneys will carefully examine your farm’s legal and financial structure to properly classify assets and income. This is critical for getting an accurate picture of the marital estate and protecting your share.
Valuing Agricultural Property
Unlike residential homes, the value of which usually depends on comparable sales in the neighborhood, a farm’s value depends on its potential to produce income. In Nebraska, farmland values have increased dramatically over the past several decades, from as low as $10 to $40 per acre to over $8,000 per acre in some parts of the state. Our farm divorce lawyers work with qualified professionals to assess a range of factors that may contribute to your farm’s value, including:
- Soil quality ratings: The fertility and composition of the soil are key to its value, and a higher rating means the land can support better crop yields.
- Water rights: Owning water rights or having access to irrigation can significantly increase a property’s value, especially in dryland areas.
- Mineral rights: While not always obvious, the rights to any minerals found beneath the surface can be a substantial asset.
- Conservation easements: These agreements can lower a property’s value by restricting future development, which can impact its worth in a divorce settlement.
- Agricultural exemptions: Property taxes on agricultural land are often lower than on other types of property, and we will make sure that the valuation properly accounts for these exemptions.
Getting an accurate valuation for your farm is essential because it’s the only way to ensure a fair and equitable division. An inaccurate valuation could risk you receiving a much smaller share than what you are entitled to or you might receive an asset that’s not worth what you thought it was. It creates an unequal situation and can lead to major financial problems down the road for both parties.
Addressing Questions About Farm Divorce Cases
A farm divorce comes with a lot of complex questions. Here, we address some of the most common ones our clients have about property rights and the division of agricultural assets:
Can your spouse claim ownership of farmland that has been in your family for generations if you have been married for 15 years?
As mentioned earlier, courts usually consider inherited property as separate property. Therefore, it is not part of the marital estate, and your spouse should not be able to claim ownership. However, if you used marital funds to pay down a mortgage on the land or if your spouse’s efforts directly improved the property’s value, a court might find that a portion of the appreciation is a marital asset.
Every case is different, and much depends on how much the property’s value increased during the marriage and how much of that was due to you and your spouse’s joint efforts, as opposed to simple market forces. Our divorce lawyers will review the specific details of your case to protect what is rightfully yours.
Can the court force the sale of your family farm to divide assets or are there alternatives?
A Nebraska court does have the power to order the sale of a family farm to divide assets, but it is not the only option. Most courts understand the importance of keeping a family farm intact and may opt for an alternative solution if one is possible.
A common alternative is a “buyout,” where the court awards the farm to one spouse, as long as they pay the other spouse their share of the marital equity. This can be through a combination of other assets, a new loan or a structured payment plan. Our experienced divorce lawyers can help you explore these and other options to keep the farm in your family.
What happens to your farm operation if you both need the income to survive but cannot work together anymore?
It depends on the specific facts of your case. If you cannot work together, the court may consider a buyout, as discussed in the previous question. The court might also consider the income earning capacity of both parties and award the farm to the spouse who is better suited to run it, while the other receives a larger share of other marital property or spousal support. Our lawyers will work to help you find a resolution that protects your financial future.
How are government farm subsidies and crop insurance payments divided in a Nebraska farm divorce?
Courts usually consider farm subsidies and crop insurance payments as income, meaning they may be subject to division in a divorce. The court will look at when you earned the payments, not necessarily when you received them. If the payments are related to work that occurred during the marriage, they are likely part of the marital estate. Our divorce attorneys will work to identify and account for all sources of farm-related income, ensuring that you receive your fair portion.
We Are Here To Help: Call Us Today
A farm divorce is a difficult process, but you don’t have to face it alone. Our family law attorneys are ready to advocate for your rights and interests. We have a deep understanding of the unique financial and emotional challenges that rural Nebraska families face. We also have native Spanish speakers on staff and can arrange for French translation services.
It’s important to us that you are informed and understood at every step of the process. Contact Walz Law Offices today to schedule your free initial consultation. Call us at 402-998-5044 or send us a message through our website.