Children returning to a family farm business should be cautious about immediately taking on directorship roles, according to Pacer Legal managing principal Stephen Park.

While this might be a "feel-good" approach to introducing children to the business, Mr Park said it could unnecessarily expose them to liabilities for existing farm debts.

"A directorship of a farming business doesn't necessarily mean ownership of assets or equity in the business," he said.

"But it does mean you will expose yourself to personal liability for farm debts, because banking practice dictates directors must provide personal guarantees and indemnities.

"So in effect you are exposed to liabilities without the benefit of any ownership in farm assets."