Understanding Board of Directors Confidentiality Agreements

Whether you are simply wanting to learn more about the inner workings of corporate structures and the corresponding legal requirements, or whether you want to leverage this knowledge to help get your divorce settlement approved by the court, knowing about a comprehensive board of directors confidentiality agreements is clearly in your best interests. One area of particular focus when negotiating a divorce settlement agreement is whether certain knowledge possessed by one spouse will negatively impact the holding spouse’s (the “Parent”) ability to gain custody or other benefits of the child. Pulling information from Board of Director confidentiality agreements into your divorce settlement agreement can significantly impact the custody and maintenance options available to the Parent.

Defining a Board of Directors Confidentiality Agreement

A board of directors confidentiality agreement is a contract between the board of directors (the “Board”) of a corporation and the corporate shareholder. It grants the Board control over the certain personal data of the corporate shareholder and imposes restrictions on the Board concerning how it can disclose and use that information. Boards are also required by state and federal law to safeguard certain information about corporations, including information relating to trade secrets, financial information, customer lists, and procurement records.

How Confidentiality Relates to Family Law

Corporations are required by law to keep certain information confidential with respect to shareholders and the public. This obligation can be further defined by a Board of Directors confidentiality agreement. When one parent’s ability to gain custody of the children is tied to his/her ability to maintain confidentiality of his/her employer’s information, knowledge of the company’s confidential information is particularly important. Having the Office of Parent Counsel open to this information may allow the Office of Parent Counsel to iron out difficult negotiations relating to child support, assets, and custody of the child. Other child support or maintenance issues may arise as a result of knowledge concerning Board-level decisions. Board-level decisions may include decisions relating to which employees are eliminated in a layoff. If you are negotiating a divorce settlement with a spouse who sits on the Board of Directors of a major public corporation, for example, his/her ability to “stay off the cutting block,” could impact the amount of child support available to pay a sizable alimony payment.

Potential Complexities of Caregiving Remuneration

Many corporations offer the opportunity for a parent to take a paid leave from work due to incapacity. In some cases, the parent can elect to pay someone to care for the child during the time that they would have spent the day at work. The amount that the corporation is willing to pay and the contract entered into between the Parent and the care-giving individual could impact the settlement agreement.

Common Questions and Misconceptions

In some cases, a Board of Directors confidentiality agreement requires the Parent to repay the corporation if he/she discloses confidential information. Relate this to your settlement agreement to avoid negative consequences resulting from violations of the Agreement. In some cases, corporation laws are overly burdensome and restrictive. Rather than impose these restrictions on your already fragile negotiations, try to incorporate these terms into the settlement agreement so that your needs are met and legal consequences avoided.

Tips and Tricks for Clients

Keep an eye on the information available to the public concerning corporate board meetings. In some cases, this information can be helpful in negotiations. Know the rules of your spouse’s corporation. Whether they are outlined in the appropriate agreement or in bylaws, you must know the rules. Not only will this information help you better understand the complex corporate issues at play, but it may also allow you to better understand why certain decisions have been made.

An Attorney for All Your Legal Needs

At the Law Office of Scott L. Levine, P.A., we are all too familiar with the complexities of Board of Director contracts and employment agreements. We are compassionate and educated professionals who take the time to learn about your situation and incorporate your goals into an outcome that works for your family. Contact us today for more information about how you can incorporate your spouse’s Board of Directors confidentiality agreement into your divorce settlement agreement.