When personal relationships break down, the impact on family owned businesses, particularly farms passed down through generations, can be profound. This case highlights how Tees supported a fourth-generation farmer through highly complex divorce proceedings, parallel litigation, and unexpected financial risk, ultimately securing the future of both the client and the farm.
For context
Our client was a fourth-generation farmer whose land was, to a significant extent, jointly owned with another family member. His wife operated a separate farm-related business on nearby leased land but held no capital assets in her own name.
The breakdown of the relationship was deeply acrimonious from the outset. Early in proceedings, the client faced applications for Maintenance Pending Suit and a Legal Services Payment Order, both of which we successfully defended, protecting his immediate financial position.
Compounding matters further, HMRC issued a claim for £1 million in unpaid duty arising from illegal cigarettes stored in a tenant’s farm barn. This posed a serious threat to the viability of the farming business if liability had been established.
What happened next
Tees’ litigation team acted swiftly and decisively to defend the HMRC claim, ultimately succeeding and removing a potentially devastating financial burden.
During this already complex period, the jointly owning family member sadly passed away. This introduced further complications, as their estate fell to be administered by executors, raising additional issues around inheritance and ownership that needed to be carefully navigated alongside the ongoing divorce proceedings.
Meanwhile, the wife’s initial settlement proposals were based on an equal division of the farm’s value. For our client, this would have necessitated the sale of a substantial portion of the land, an outcome that would have fundamentally undermined the long-term sustainability of the farming business.
Why Tees made a difference
Our multidisciplinary approach, combining expertise in family law and litigation matters enabled us to guide the client through multiple, overlapping challenges.
We:
- Successfully defended urgent financial applications at an early stage
- Defeated a high-value HMRC claim, safeguarding the farm’s future
- Navigated complex inheritance issues arising mid-proceedings
- Provided strategic, commercially focused advice during negotiations
Through careful negotiation and a clear focus on preserving the farming business, we helped the client reach a settlement that balanced fairness with practicality. The outcome included a £250,000 lump sum to meet housing needs, alongside a pension share, avoiding the need for a forced sale of land.
Importantly, we also ensured the client had appropriate funding arrangements in place, supporting both the settlement and the long-term sustainability of the farm.
Giving you the full picture
If you are facing divorce or financial disputes involving family businesses, agricultural assets, or complex ownership structures, Tees can help you protect what matters most.
Contact our expert team today to discuss your situation and explore your options with confidence.
