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Rise in pre-nup and post-nup agreements for farming families following budget reforms

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March 20, 2025
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Rise in pre-nup and post-nup agreements for farming families following budget reforms
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Specialist agricultural lawyers at Clarke Willmott LLP have reported a surge in enquiries about pre-nuptial and post-nuptial agreements from farming families, following recent government changes to inheritance tax on farm assets.

With succession planning now a pressing concern, private client and family law specialists are seeing increased demand for legal advice to safeguard farming assets, ensuring they remain within the family for future generations.

Holly Smith, an associate in Clarke Willmott’s family law team, explained that nuptial agreements can play a vital role in securing agricultural assets, including land, livestock, farming equipment, and business interests.

“Many farming families recognise the importance of protecting specific assets and ensuring they stay within the family,” she said. “A nuptial agreement can clarify ownership and outline how assets—including future inheritance and business interests—will be managed in the event of a divorce.”

Under government plans announced in October, from April 2026, agricultural and business property assets up to £1 million will continue to receive full inheritance tax relief, but anything above this threshold will be taxed at an effective rate of 20%. Farmers warn that these reforms could create severe financial challenges and even impact food production.

Smith stressed the importance of early legal planning: “We understand how concerned our agricultural clients are about these new rules. Seeking legal advice now is essential to mitigate risks and protect family assets.”

Beyond inheritance tax reforms, nuptial agreements are increasingly relevant when bringing the next generation into the family business, gifting assets, setting up trusts, or restructuring agricultural enterprises.

“By addressing potential issues in advance, farming families can ensure clarity, reduce the risk of disputes, and preserve their agricultural heritage,” Smith added.

As farming businesses navigate these legislative changes, legal experts are advising early action to secure long-term asset protection and avoid future uncertainty.

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Rise in pre-nup and post-nup agreements for farming families following budget reforms

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