Considering pre or post-nuptial agreements Passing on a farm and property to the next generation is an easier decision for some landowners than others. For example, where there is a clear line of farming succession, and those successors are ready to take on the land and property. But even where this is the case, it is important to consider how the farm is best protected from all angles. And an area often overlooked is the impact of marital breakdown. Both pre-nuptial and post-nuptial agreements are becoming more and more popular in the UK. And whilst the conversation around them can sometimes be difficult, they are one of the most effective tools for protecting a farm against marital breakdown. We’ve advised a number of businesses around land and property transfers prior to and since the October 2024 Budget.
And where land and property is passed down a generation, we’ve been recommending that the protections offered by pre or post nuptial agreements are also considered. Because there are implications if a couple are married that could affect not only an immediate decision but also the long-term future of the farm and its successors. A farm that’s been in the family for generations will not only have a financial value based on its assets but an emotional one too. Similarly, there’s often business structures like partnerships, tenancies and limited companies to navigate. And then there’s future inheritance, trusts and health to think about too. This is an area where expert legal advice is essential. A pre or post nuptial agreement is not something to be entered into lightly, and aside from navigating the dynamics of the relationships concerned, it is crucial that legal advice is taken by all parties from the outset.
We suspect that pre and post nuptial agreements will become even more popular in the UK as attitudes towards asset ownership evolve and, simply put, as more land and property is transferred by generations seeking to mitigate the impact of changes to the APR and BPR legislation. It’s been well publicised that the October 2024 Budget was not kind to the rural sector and, whilst the changes to APR and BPR will continue to attract attention, I suspect we will start to see the real-time cost of the Budget in the coming months. For more information about these issues or any other affecting your farm or estate, talk to Jack or one of the team by calling 0330 058 6559 or email hello@scruttonbland.co.uk *source increase in employer National Insurance contributions by employee earnings, 2025–26 | Institute for Fiscal Studies
AGRICULTURE AND FARMING | SCRUTTON BLAND | 9
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