What Is a Non-Disclosure Agreement and Should Your Divorce Include One?

Most divorce proceedings in Michigan require spouses to publicly exchange information regarding assets and other financial details.

Courts use this financial information to make rulings on property division, child support agreements, and spousal support. When a divorce in Michigan involves complicated financial matters, a spouse may want to ensure that certain information remains confidential.

If you want to protect sensitive information, you can enter into a non-disclosure agreement with your spouse. Learning more about this process may help you navigate a divorce’s complexities.

What Is a Non-Disclosure Agreement?

A non-disclosure agreement (NDA) is also called a confidentiality agreement. Generally, two or more parties sign these legally binding contracts to keep specific information private from external parties.

There are many reasons someone undergoing a divorce would want an NDA. If you run a business, you may want to protect sensitive information or trade secrets that your spouse knows about. Public information can sometimes compromise or damage your business venture. Confidentiality agreements are designed to protect these assets.

Depending on the terms, a breach of an NDA can result in a lawsuit and damages. As such, these contracts encourage anyone who signs them to maintain the information as secure and confidential.

Provisions of a Confidentiality Agreement

When you and your spouse agree to a confidentiality agreement, there will be different provisions that you’ll need to include.

Detailed Information

The most important information you’ll outline in an NDA is the details you wish to keep private and secure.

By clearly defining what you want to protect, you ensure that courts can enforce your agreement. The more details you provide, the better the outcome.

Duration of Agreement

Another provision you’ll need to determine is the duration of the NDA itself. In other words, how long the confidentiality agreement will be enforceable. Most NDAs in Michigan have an expiration date.

Depending on the circumstances, these can range from a few months to many years.

Exceptions to Confidentiality

NDAs often outline exceptions, such as instances when disclosure can be acceptable under the law.

Every NDA is different and will be tailor-made to meet your needs. If you’re protecting a business, there may be circumstances that allow disclosure and won’t result in a breach of contract.

An attorney will be able to review your situation to help you better understand how exceptions may affect an NDA in your divorce.

Confidentiality Agreements and Divorce: The Bottom Line

Any divorce is a serious legal matter. When your assets and finances are on the line, it’s essential that you feel comfortable and protected. Business information and other sensitive matters can cause rifts and problems when a couple files for divorce.

Fortunately, Michigan courts are flexible when it comes to granting confidentiality agreements. As long as you have a valid reason to protect financial or personal information, you’ll be able to petition for an NDA.

Gucciardo Family Law represents divorce matters throughout Oakland County. Give us a call for a consultation today!