Partition Actions in Minnesota: The Hidden Threat to Family Farms

For many Minnesota families, the family farm is more than just land—it's legacy, identity, and the result of generations of hard work. When it comes time to pass that farm on to the next generation, the hope is usually simple: keep the land in the family, maintain harmony, and ensure the operation continues smoothly.

But what happens when not everyone agrees? What if one sibling wants to keep farming, while another wants to cash out? This is where a legal tool called a partition action can become a serious threat to the future of the family farm.

What Is a Partition Action?

A partition action is a legal process that allows any co-owner of real estate—like farmland—to ask the court to divide or sell the property. It doesn’t matter if the other owners object. In Minnesota, if two or more people co-own property, and one of them no longer wants to remain an owner, they can file a partition action to force a resolution.

In some cases, the land can be physically divided, with each party walking away with a portion. But farms don’t always lend themselves to clean splits. Irregular shapes, access to roads, water rights, and other complexities often lead courts to order the entire property sold—typically at market value—and divide the proceeds among the co-owners.

That means a sibling who wants to stay on the land could be forced off, simply because another wants out.

Why This Is a Growing Concern

In Minnesota and across the Midwest, farmland is frequently inherited by multiple children. Unless the estate plan clearly spells out what should happen with the land—or includes legal tools like buy-sell agreements—co-ownership becomes the default. And with that co-ownership comes risk.

Partition actions are especially problematic when one heir is actively farming the land, while others are not. Without legal protections in place, the non-farming sibling can initiate a partition action, which could force a sale that displaces the farming heir and ends the family’s direct connection to the land.

Even worse, these disputes often begin with tension over money, differing values, or a lack of communication—issues that can escalate quickly when no plan exists.

Preventing a Partition Action

The good news is that partition actions are preventable with proper planning. Families that want to avoid this kind of forced sale need to be proactive, ideally while the original owners are still alive.

One of the most effective tools is a buy-sell agreement, which lays out exactly how co-owners can exit their ownership and how remaining owners can buy them out. These agreements help ensure that any transitions happen in an orderly, fair, and pre-agreed manner—without involving the courts.

Additionally, thoughtful estate planning can reduce the chance of co-ownership conflicts altogether. Parents may choose to leave farmland to a single child who is actively involved in the operation and provide equalizing assets (like life insurance) to others. Or they might create a trust or business entity (like an LLC) to hold the land, with clearly defined rules for ownership, management, and buyout.

Minnesota’s state estate tax also adds complexity. Even though federal estate tax thresholds are high, Minnesota’s exemption is significantly lower. That makes planning even more essential for landowners here—both to avoid unnecessary taxes and to preserve family harmony.

Your Farm, Your Legacy

Partition actions can feel like a worst-case scenario—but they’re all too real for families who haven’t prepared. If you want your family’s farm to stay in the family, take steps now to ensure the next generation is aligned, informed, and legally protected.

Work with an experienced estate planning or agricultural law attorney who understands Minnesota law and can guide you through options that match your goals. With the right tools in place, your legacy can remain rooted in the soil—not lost in the courtroom.

To learn more about farm succession and estate planning, keep an eye on our Events page located at: https://www.wagnerlegalmn.com/events/ and visit Farm Lawyer.

If you’re ready to start being proactive about your farm succession and estate plan, contact us to get started.

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