The Role of Daughters-in-Law in Australian Farm Succession Planning
The University of New England have recently published research into the role a daughter-in-law plays in family farming and succession planning. Titled the “dreaded” daughter-in-law in Australian farm business succession, the research looks at the dynamics of gender roles in family farming enterprises.
In many Australian family farms, the financial sustainability and cultural reproduction rely heavily on women's contributions, both on and off the farm. However, these contributions often come with expectations rooted in traditional gender norms, where women are primarily valued as mothers, wives, or daughters rather than as equal partners in farm management.
The “Dreaded” Daughter-in-Law
The study highlights tensions within these farms, particularly concerning the role of daughters-in-law. While daughters-in-law are crucial for the biological, social, and financial aspects of farm life, they are also seen as potential threats to the farm's continuity. With interviewees of the study describing the daughter-in-law as “the most feared animal on the farm”, “dangerous”, and a “risk”.
Legal Fears: Farm Asset Claims and the Family Law Act
This perception stems from fears that daughters-in-law could claim farm assets in the event of divorce. A concern exacerbated by the Family Law Act 1975, as in the event of a property settlement the court will apply a four-step process to determine the most equitable and just outcome for both parties, considering many factors and variables to ensure the outcome is both just and equitable.
To protect the farm against such risks, older generations have employed defensive strategies, such as legal protections to prevent asset claims. These strategies include the use of binding financial agreements, discretionary trusts or excluding spouses from ownership of property, however they do not come without potential risks. While these tactics may be aimed at preserving traditional structures and maintaining farm continuity, they may also inadvertently hinder farm adaptation and innovation.
The study also reveals a reluctance among younger generations to challenge these norms, as they wait for the opportunity to inherit the farm even if it might not be in their economic interest in the short term. Often the younger generation is paid a nominal wage, despite their time and commitment to ensuring the farm’s success. As they believe they will be financially rewarded when the farm succession transfer eventually takes place. However, we know from case law and experience that that time may not come.
The Path Forward
Embracing more inclusive and equitable practices in farm succession could not only strengthen the economic viability of farms but also ensure long-term sustainability. While the gendered dynamics within Australian family farms reflect deeply ingrained traditions and challenges, they also present opportunities for evolving towards more resilient and inclusive agricultural practices.
Maggie Orman’s Succession Planning Tips
Maggie Orman has dealt with many farming succession matters over her 23 years of experience. Coming from an extensive farming background, Maggie is passionate about succession planning and its processes.
Maggie’s top tips include:
Start the process early
Communicate with an open mind and heart
Formalise your agreements
And don’t overlook the role of ALL family members and what they can contribute to your family and farm
“The overarching goal, in the farm succession matters I have worked on was to ensure the continuity of farming operations for future generations. I take pride in determining the division of responsibilities. As someone who not only understands the legal intricacies but also possesses a personal connection to farming, I am dedicated to facilitating resolutions that allow farming legacies to continue. I look to the future and I want families to sit around and share a wonderful meal at Christmas time, enjoying the rewards that everyone has worked so hard to achieve.” Maggie Orman
Maggie’s experience in farming, coupled with her legal expertise, enables Orman Solicitors to offer innovative solutions for succession planning within farming families. If you would like to have a complimentary 15-minute consultation to discuss whether a Farm Succession Plan is appropriate for your family give us a call on 1300 676 267 to make an appointment.
Disclaimer: The content presented in this article is offered for informational purposes and should not be construed as legal advice or a substitute for professional guidance. If you have questions or require legal assistance, we strongly recommend consulting with a Solicitor to address your individual circumstances.