Married couples may choose to use a non-disclosure agreement (NDA) for a variety of reasons. Whether one spouse wants to...
Married couples may choose to use a non-disclosure agreement (NDA) for a variety of reasons. Whether one spouse wants to protect private, financial, or reputation-sensitive information from public exposure, these contracts legally restrict one party from sharing confidential details.
If you are going through a particularly high-conflict divorce with significant assets, you need the guidance of an experienced family lawyer. Keep reading as the legal professionals at The Riley Divorce & Family Law Firm explain NDAs in divorce, when confidentiality agreements are enforced, and when the court may make an exception.
NDAs in a divorce are generally enforced when spouses enter into these confidentiality agreements voluntarily, ideally with independent legal advice. It is essential that you fully understand the scope of what you are expected to keep confidential, with full financial disclosure, and without coercion.
So-called gag orders are typically used to prevent the public disclosure of private financial information, business interests, or personal details. The courts uphold confidentiality clauses when they are considered reasonable. However, what is considered reasonable in these circumstances may be confusing. The restrictions must be sensible in duration and scope, protecting legitimate interests, rather than unreasonably restricting the other spouse’s freedom.
Some factors exist that could prohibit the court from enforcing confidentiality agreements. An NDA cannot be used to bypass the legal requirement for full disclosure of assets, income, and debts. In fact, if one party attempts to use a confidentiality agreement to hide assets, the court will likely refuse to enforce it in a divorce.
In some jurisdictions, such as Prince Edward Island, laws prohibit NDAs in settlement agreements involving sexual misconduct, harassment, or abuse, unless it is at the request of the victim. Additionally, confidentiality contracts cannot be enforced to prevent the reporting of criminal activity or to bypass legal obligations regarding child support or the best interests of the child.
If an NDA is breached, the aggrieved party may seek an injunction to stop further disclosure. In some cases, violating a court-ordered confidentiality provision could also be treated as contempt of court.
The party that is responsible for the breach may face significant civil legal consequences, including lawsuits for damages, liability for the other party’s legal costs, and potential forfeiture of settlement funds. Our divorce lawyers could answer any other questions you have regarding NDAs and when they are enforced.
If you still have questions about NDAs in divorce and when these confidentiality agreements are enforced, now is the ideal time to talk to The Riley Divorce & Family Law Firm. Our skilled, Toronto-based lawyers are ready to deliver the answers you need, 24 hours a day. We understand that dissolving your marriage is more than just an emotional experience. Contact us today for guidance throughout the legal process.
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