Many people assume that only the rich–movie stars, celebrities and CEOs, for example–need to have prenups. While these people certainly can use them in Texas, it’s also important to note that prenuptial agreements can be very useful for farmers. Though not often thought of as rich, the reality is that farm values could be climbing constantly, providing more of a value than people realize, and a prenup can help if there is a divorce.
The reason behind this is the value of land. As people have often said, there’s never going to be more land, but there are always going to be increasing population levels. On a grand scale, that means that there is more demand and less supply every year, so properties–and especially those that are as large as farms–could become worth far more as the years go by.
Of course, that is just looking at the raw value of the land itself. It’s also important to note that a growing, successful farm can have a value all it’s own, just like any business.
Farming is often a family pursuit, which is another reason a prenup may be needed. If a farm has been in the family for three or four generations, will the family really be happy to lose half of that land in a messy divorce? If assets have to be split in half, the only way to do it may be to divide the land. The ex-spouse may then decide to sell it off, reducing the size of the farm, getting rid of land that the family thought of as their own, and opening up the door to developers and investors.
To learn more about how prenups can help for farmers, please check out our site now.