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Divorce is often an intensely personal experience, yet in many cases, financial and personal details become part of public court records. This can be concerning, particularly for individuals with significant assets, business interests, or a public reputation. In New York, Non-Disclosure Agreements (NDAs) offer a way to protect sensitive information during and after divorce proceedings.
NDAs can prevent either party from sharing private details about the divorce, finances, or personal matters. They are particularly valuable in high-net-worth divorces or cases where one or both parties want to safeguard business interests. While New York law recognizes these agreements, they must be carefully drafted to be enforceable. Understanding when and how NDAs apply can help divorcing spouses protect their privacy while complying with legal standards.
What Is a Non-Disclosure Agreement in a Divorce?
A Non-Disclosure Agreement (NDA) is a legally binding contract that prevents one or both parties from disclosing specific information about their divorce. In New York, NDAs can be separate agreements or incorporated into prenuptial, postnuptial, or divorce settlement agreements. These agreements serve to protect personal and financial details from being shared publicly or with third parties.
Typical provisions in a divorce-related NDA include:
- Restricting the disclosure of financial details, such as asset division and alimony agreements.
- Prohibiting discussions of marital misconduct or personal matters in public or with media outlets.
- Preventing the release of business-related information, including trade secrets or client lists.
For couples with substantial financial interests, an NDA ensures that sensitive details remain private, reducing the risk of reputational damage and financial harm.
When and Why Are NDAs Used in New York Divorces?
NDAs are not necessary for every divorce, but they can be highly beneficial in specific situations, such as:
- High-profile divorces: When one or both spouses have public careers, media attention can be a concern. An NDA prevents unwanted disclosures.
- High-net-worth divorces: Protecting financial settlements, investment details, or estate planning decisions can be crucial.
- Business ownership: If one spouse owns or co-owns a business, an NDA can prevent confidential business information from being shared.
- Preserving reputations: Divorce proceedings can become contentious, and an NDA ensures that neither party publicly shares damaging allegations.
By securing an NDA, divorcing spouses can maintain their privacy and avoid unnecessary conflicts or legal disputes over leaked information.
Enforceability and Limitations Under New York Law
While NDAs are legally valid in New York, they must meet certain criteria to be enforceable. Courts may refuse to uphold an NDA if it:
- Is overly broad or imposes unreasonable restrictions on one party.
- Violates public policy, such as attempting to silence reports of domestic violence or illegal conduct.
- Unfairly restricts legal rights, including preventing a party from seeking legal recourse or discussing issues with their attorney.
To ensure an NDA holds up in court, it must be fair, reasonable, and clearly defined. Each party should have independent legal representation to review the agreement before signing. An experienced New York divorce attorney can help draft an NDA that aligns with the law while protecting both parties’ interests.
Talk to a New York Prenuptial Agreement Attorney
A well-drafted Non-Disclosure Agreement can be a crucial tool in protecting privacy during a divorce. If you are going through a divorce in New York and want to explore how an NDA can protect your interests, Aiello & DiFalco can help. Our experienced family law attorneys will guide you through the process and ensure your privacy is safeguarded. Contact us today to schedule a consultation.