When we think of nondisclosure agreements and the need to protect our valuable business trade secrets, we often think in terms of protecting their information from rogue former employees or from our business competitors. But what about your spouse? When divorce comes around, protecting your valuable business secrets is something that you may want to think about.
Read on as our Chicago business attorney at Ellis Legal explains more.
They Know a Lot
Whether your spouse works in or at your business or not, the fact remains that for many people, our spouse is a trusted business advisor. We trust his or her advice, and he or she knows about our business, whether in a professional capacity or just from hearing us talk about the business in the car or at the dinner table.
Your spouse knows a lot about you and your business and your business dealings. A lot of that information could be seriously damaging if it gets out to the general public. So when divorce seems to be on the horizon, you may wonder: what will happen to the information that my spouse knows about the business?
When Should You Consider an NDA?
There are times when you legitimately should be concerned about what a spouse knows about your business and its dealings, such as when divorce is looming.
Imagine these situations:
Your spouse knows about something about your business that could get you, or it sued, or worse, in criminal trouble
Your spouse is vindictive, threatening, or has made comments about telling people vital information about your business
Your spouse feels that he or she isn’t getting what he or she deserves in the divorce, which could lead to the need for very invasive financial discovery about your business in the divorce case—information that could be damaging if it was used against you
There is something about you, personally, that you feel could have a negative impact on your business if it was revealed—perhaps something that you’ve said or done or the way you may have behaved in your personal life
Negotiating for an NDA
The good news is that you can negotiate, as part of any negotiated settlement, a nondisclosure agreement with your spouse upon divorce and include it in any mediation or marital settlement agreement.
The bad news is that if your divorce goes all the way to a trial, you won’t get any nondisclosure provisions. A family court judge does not have the authority to require that either party remain silent about business terms, to gag what either party says, or to impose penalties for disclosing confidential business information to the general public.
That means that for business owners who have concerns about what their soon-to-be ex-spouse knows about the business, a resolution outside of court may be something to strive for if at all possible.
Project your business, no matter what the situation may be. Speak with a Chicago commercial litigation law attorney at Ellis Legal at (312) 967-7629 today.