Very Touchy Subject....Divorce

[westernvicki]

Taking 50% of the asset base from the farmer can be the equivalent to taking the professional papers away from a Dr. or teacher or a nurse, as it can interfere with the farmers ability to maintain a viable business and the career.

The recent increase in assets from 2005 to date has seen asset values increase 4 x in many cases.
However, current income is unlikely to sustain the debt on a farm which may be forced to valuate 50% of that asset increase, and pay out this sum in a divorce. This type of division can be highly destabilizing to the career of the farmer, and the farm unit that is involved.

Given that farm units are often more complex than those of our grandparents, a prenup is just good business for everyone involved.

[blackpowder]

It is a necessity.
As are life insurance policies should something happen to farming child.

[blackpowder]

Exactly half of every cent leftover and half before tax of all future cents if any support.


Mid month paychecks for some often $0 after maintenance.

If your job pays you 60k a year.
If 2 kids. After support on 60 and income tax on 60 you will live on 30 for the year.

If you self employed then lawyers have field day. Maintenance stays out of it.

Try paying off that machinery while paying support based on arbitrary (up to 100) % of depreciation added back to income.
Now replace that machinery.

Or you can pay for an audit into what shares in your company are worth. Paying those snotty assessors up front real fun. Yes, you do all the paying.
The other party of course their lawyer simply takes his fee out of the settlement. Cozy.

Now, we havent touched on the cost of court appointed parenting evaluations and mediation. IF you play their game, those educated idiots are only $300/hr.

Laws intent to assume house still intact. ie. lifestyle to which they were acustomed.

No wonder self representing more common.

[blackpowder]

About self representing. Obviously I'm not ambitous enuf to bother for long run.
But next time I get a Sunday night Purolator package telling me to appear in court Friday, you can bet I'll be going alone the first time. Mayswell ring up more time $ for the other party.
This shit is planned weeks in advance and sprung on you at last minute. Shock and awe. Fk em.

[farmaholic]

BP....will you be free of mandatory obligations once the youngest is through post secondary or will you have lifetime hellimony to pay.

Hopefully one day you will be free of the bullshit....something to look forward to. I've heard it may never really end because.of the "common bond" (kids)....events, grads, convications, marriage, grandkids, etc etc etc......

Take care man.

[blackpowder]

Freedom from lawyers will be over after post secondary as luckily I dont have spousal. At which point she will be broke.

[blackpowder]

And true, your children will always have same mother. So if any crazy involved only over for you when your dead. Pray for the kids.
Especially those taught to hate.

[blackpowder]

Sorry none of your original questions answered. After rereading them they seem somewhat unanswerable as they sound as from the audience rather than the arena.
Good luck farma.

[farmaholic]

Quote:

" I am on the record here as saying I will likely never fully enjoy the full value of the farm because it won't get sold to my kids at full market value. lots will likely be gifted. Yet if my kids get divorced, I haven't been paid fair value but their spouses are entitled to half of full market value? How is that fair? Some people could become millionaires just by "association", osmosis."

This is the statement I want the people to think about....the message I want to drive home! It is terrifying to think of the consequences of doing nothing.

[westernvicki]

Exactly, farmaholic!

Worked in the industry long enough to hear circumstances that are more than difficult on the farmer and a farm unit after divorce. And while, personal support will always be necessary in a divorce, the valuation of assets and inherited assets as divisional property, is indeed a challenge. Even more so at today valuations, and income.