In high-asset divorces, business interests often become a source of tension. Beyond their value, there may be ongoing obligations and...
Business owners getting a divorce are rightly concerned about the disclosure of proprietary information. However, while their spouse has an interest in the business and a right to financial disclosure regarding its value and future prospects, that information could be damaging if it ends up in the wrong hands.
The lawyers at The Riley Divorce & Family Law Firm know how to protect confidential business information in a divorce. Our team is knowledgeable in all aspects of complex and high-net-worth divorce.
Avoiding divorce litigation is the best way to manage the risk of confidential business information reaching the public. Our lawyers advise clients on various approaches, including mediation, arbitration or collaborative divorce, whenever possible.
You will still need to compile and disclose sensitive data. However, mediators and a collaborative divorce team are bound by professional ethics and regulations guaranteeing confidentiality.
Negotiations around property division may require input from third parties, such as a Chartered Business Valuator, forensic accountant, and others. Although these professionals also have ethical and professional obligations to keep business information confidential, our divorce lawyers could draft non-disclosure agreements (NDAs) for them to sign to add an additional layer of protection.
Ideally, you and your spouse will eventually reach consensus on all issues and execute a separation agreement. The agreement may include a non-disclosure clause protecting your business information.
This clause is enforceable if it protects a legitimate business interest and if you made full disclosure during negotiations. Be aware that if you made an inaccurate or incomplete disclosure, a court could set aside some or all of the separation agreement, including the non-disclosure provision. A lawyer experienced with complex divorces could ensure disclosures are accurate and provide a firm foundation for confidentiality clauses.
Avoiding court is not always feasible or within your control. When your divorce becomes a legal case, our lawyers could take several steps to preserve your privacy and your confidential business information.
We may request that documents revealing sensitive or proprietary business information be accepted under seal. This prevents their inclusion in the publicly available records of the case. We may also request that any testimony regarding your business or personal information that could impact your business be held in camera, meaning out of public view. Judges are often willing to grant these requests, particularly when the media has an interest in a divorce.
Your business is a testament to your effort and vision. It is natural that you would want to know how to protect confidential business information in a divorce. Contact The Riley Divorce & Family Law Firm and find out if we could help you shield proprietary or sensitive information from disclosure during your divorce.
Paul Riley Law Office
