Understanding Non-Circumvention Agreements in Family Law

In the world of family-owned businesses, it is often essential to have non-circumvention agreements. If you are involved in a family business and you are going through a divorce, custody dispute, or another family-related legal matter, a comprehensive non-circumvention agreement template can be essential.

What is a Non-Circumvention Agreement?

A non-circumvention agreement is a formal or informal agreement that a party will not disclose confidential information to third parties, make use of certain methods to utilize information from the other party that was not intended for them, or otherwise avoid obligations under an agreement.

What Are Some Contexts Within Family Law in Which a Non-Circumvention Agreement Can Be Used?

Non-circumvention agreements can be used in a variety of contexts. A few examples include:

How Can a Non-Circumvention Agreement Protect Family Assets and Business Interests?

A non-circumvention agreement can protect a family business from potentially damaging information that could result from a divorce or other family law matter. For example, if a husband biased in favor of his own interests in a business were not prevented from disclosing confidential information such as how much money his father was giving to his business or how assets were flowing into the business, his improper disclosure could lead to conflict with the other party’s interests and possible loss of clients. A non-circumvention agreement can limit this risk. Such an agreement can also help to preserve non-marital portions of a family business. In many states, a spouse who owns a portion of a business that existed prior to marriage has the right to preserve the marital portion of the business and the non-marital portion of the business. This could be important for an established business that has been owned for generations. Having a non-circumvention agreement in effect can protect corresponding family interests.

How Could a Non-Circumvention Agreement Be Used in a Divorce?

A non-circumvention agreement could be used in a divorce to ensure that one spouse does not unfairly disclose information that is damaging to the other spouse, perhaps intentionally, perhaps unintentionally. A non-circumvention agreement can protect both parties in a divorce.

How Could a Non-Circumvention Agreement Be Used for Custody?

A few situations could arise pertaining to non-circumvention agreements in a custody situation. One example is that information might be shared between legal counsel in which one parent attempts to disclose information that damages the other parent’s business interests. A non-circumvention agreement could be in place to protect the other parent’s interests.

How Does Scott L. Levine, P.C., Help to Create Non-Circumvention Agreements?

Scott L. Levine, P.C. can help you to develop confidentiality agreements that can be used in the context of business transitions that might affect family interests, whether it is a divorce, custody dispute, business sale or purchase, or otherwise. A non-circumvention agreement template can be used and modified to meet your specific needs. A confidentiality agreement in place can also help to address issues pertaining to intellectual property.

What Could We Expect to Happen if We Do Not Have a Non-Circumvention Agreement in Place?

If we do not have a non-circumvention agreement in place, the result can be anything from unfair business competition to total disregard for the rights and interests of the other family members that have interest in a family business. Confidential information can be purposely or inadvertently disclosed.

What are some Examples of Non-Circumvention Agreements that Have Been Effectively Used?

There are circumstances where a family or business partnership agreement, a marital agreement, a separation agreement, or a divorce decree could serve as an effective non-circumvention agreement.

What Does Our Promoted Article on Non-Circumvention Agreements Explain, and How Can It Help Us?

The promoted article explains that a non-circumvention, non-disclosure agreement may have limited application to family law and divorce. However, the article also notes that a non-circumvention agreement can be effective in protecting family businesses and other interests. Confidentiality in business matters may be significant, and it can also be significant that a party does not purposefully reveal information that could be damaging to the other party.