- 1). Write down the names of every person among whom you want to divide the family farm.
- 2). Calculate the value of the farm before any other members worked on the farm. If the farm work was always divided (i.e., you purchased the farm when your farm-working children were grown), then calculate the value of the farm at the time of your acquisition.
- 3). Divide the previous value of the farm by the number of family members with whom you want to split the farm. Write the value under the name of each person to whom you will divide your farm.
For example, if the original value of the farm totals $100,000, then the division between five children grants each child $20,000 worth of the farm. - 4). Write down the total value of the farm at the time that the family member began working on the farm. Above this number, write down the total value of the farm when the family member ended his work on the farm. Subtract the first number from the second number. Now divide the total by the number of family members involved in the farm during that period. Write this number under the name of the person for whom you calculated this number. Repeat for each family member, including yourself.
For example, your eldest son worked on the farm for 10 years. The value of the farm previous to his work totaled $100,000. The value after the 10-year period totaled $200,000. The increase in value equaled $100,000. If four family members worked on the farm, your son put in $25,000 worth of sweat equity. - 5). Add together the farm assets for each family member to ensure that they equal the current value of the farm. If they do not, then double check your work for mistakes.
If they do add together, each person now can reference the value of her share in the farm. This technical division of the value of the farm helps in the case of a family member (or investor) wanting to purchase a part of the farm that does not belong to her. In other words, determining the value of each member's share helps set purchase prices. - 6). Divide the physical property, if needed. Situations where you may need to physically divide a property include the cases of multiple family members wanting to move onto the property or to create individual but separate farms for each family member.
Divide land by sectional value rather than by the total value of the land. For example, the part of the farm with the chicken coop holds more value on a chicken farm than uncleared brush. Therefore, for fair division, the person gaining the chicken coup in the division receives less land than the person receiving the uncleared land. In the case of assets such as lawnmowers or livestock, determine the worth of each asset individually and include this in the person's total receipt. - 7). Divide your personal farm assets between the family members, if you are writing a will or otherwise giving away your portion of the farm to the family members. You can divide your portion evenly or choose to give it to family members however you like.
- 8). Draw up legal documents with your lawyer (if needed), dividing the farm the way that you decided.
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