What Is A Family Land Split?

Sally and her young family want to move back to the ranch, but Mom and Dad are still living in the old ranch house.  There isn’t room in that old house for Sally’s growing family.  Besides, they want their own space.  Sally and her husband want to build a house, but the bank will not lend them money if they don’t own the land.  Now what do they do?  Well, a family land split can solve the problem.

When a landowner wants to subdivide property outside of city limits, they look to the County subdivision regulations.  However, Wyoming Statute § 18-5-303 has a unique exception that allows for families to subdivide their property without going through rigorous subdivision requirements, called a Family Split.

Family splits are a division of land made outside of a platted subdivision, where the landowner gives or sells the property to an immediate family member (child, sibling, stepchild, spouse, grandchild, grandparent, or parent of the landowner).  The land division must be to provide for housing, business or agricultural needs of the family member, and:

·         The land must have been titled to the owner for 5 years or more before the land division (if owned by the grantor prior to February 27, 2019, or 10 years if titled to the grantor after February 27, 2019;

·         Parcels created under a family split must remain in the family member’s name for one year unless subject to an involuntary transfer (bankruptcy, foreclosure, death, etc.)

·         Parcels created under a family split must be at least 5 acres, unless a subdivision permit is obtained

·         If a corporation owns the land and 80% or more of the shares are owned by relatives, a transfer may be made to a shareholder who owned at least 5% of the shares for at least 5 years prior to the gift or sale.

County subdivision rules do not apply to subdivision of land into parcels greater than 140 acres in size.  Under 140 acres, Wyoming counties have the discretion to regulate subdivisions of land.  For example Sheridan County regulates subdivisions of land less than 80 acres, while Campbell County regulates subdivisions of land less than 35 acres (although legal access and utilities access is required).

Once the Family Land Split is complete, Sally and her husband will own some property in their name.  They can get a loan, build the house she always wanted, and be there to help Mom and Dad run the ranch together. 

If you or your family are considering a Family Split, let our experienced attorneys guide you through the process.  Call us at 307-682-1313