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Is a confidentiality agreement important during a divorce?

On Behalf of | Aug 4, 2020 | High Asset Divorce

A divorce can hurt anyone, especially those who are in the public eye. On top of that, a highly publicized divorce may expose your earnings or the assets that you hold. That’s something you would never want. 

One of the things that celebrities and wealthy individuals use to protect themselves is a confidentiality agreement. On the whole, it’s understood that this information, which is not available to the public during your marriage, should also not be made public during a divorce without the right protections in place. 

How does a confidentiality agreement work during a divorce?

During a divorce, a confidentiality agreement works by spelling out how financial documents and other files are handled. For example, the agreement may specify that only the divorcing parties, their attorneys, the court and others directly involved in the case may have access to the documents. That would mean that sharing this information over social media, with friends and family or with the media would be off-limits. 

If you don’t have a confidentiality agreement, then there are some problems that could come up. Business owners may see their information exposed, for example, or a wealthy partner may have their finances revealed to the public. You may also have all of your “dirty laundry” aired publicly, which can damage your reputation and your brand. 

Both parties may be able to see the importance of a confidentiality agreement. If you do, then your attorney may be able to help you set one up before you begin the divorce process. That way, you’ll be able to protect yourself and your investments against public knowledge. If your attorney doesn’t bring this up to you, make sure you ask for a confidentiality agreement yourself.