If your adult child owns a share of your family farm, or if you plan to leave all or part of it to them when you retire or pass away, it’s worthwhile to talk with them about getting a prenuptial agreement before they marry. This can prevent the farm from falling out of the family’s hands should they divorce.
While individual inheritances are typically considered separate property that doesn’t have to be divided in divorce, that reality doesn’t always work out the way people intended. A future in-law could claim that the farm became “commingled” with marital assets or that they put time and work into it that gives them the right to a share.
A well-crafted prenup can help ensure that if the marriage ends, your child can leave the marriage with their full share of the land, equipment and business and continue to keep the farm in the family. Whether you’re a first-generation farmer or it’s been handed down through generations since your ancestors first settled in Minnesota, that may be crucial to your goals and your legacy.
Why you can’t get too involved in your child’s prenup
There are a number of things to be cautious about when it comes to someone else’s prenup. First, you can’t get too involved in it. It’s important to let your child know what’s at stake and what you want them to protect. However, you shouldn’t be involved in the drafting of it. That’s between them and their spouse-to-be and their separate legal representatives.
Further, neither you nor they can pressure a future spouse into signing a prenup. That can lead to it being ruled invalid if it ever needs to be used. That means it can’t be sprung on a future in-law in the days leading up to the wedding when they feel like it’s too late to back out.
A family farm, like any family business, needs to be protected when anyone with a current or future stake in it marries. It’s a good idea for you (and your child) to learn more about doing that through a prenup if they’re considering tying the knot. Getting sound legal guidance can help.