A great deal of family law crosses over with other aspects of the law. One example is non-solicitation agreements. Non-solicitation agreements (or clauses), are very popular as a restriction on employees when becoming employed by an organization. They can also be sources of litigations for many other reasons and in family law, they can become potential factors in disputes like divorce. A recent article that I’ve been reading for work titled “Negotiating the Legality of Non-Solicitation Agreements,” provides insight on the topic of how to navigate non-solicitation agreements. “While non-solicitation agreements can be effective tools in preventing the dissolution of business relationships,” it states, “they can also be problematic if not drafted properly from the outset.” Non-solicit and other employment contracts can end up being factors in family law business ownership issues such as divorce or separation or sometimes inheritance or gift distribution issues. Problems arise when an owner of a business or estate or organization is tied into a non-solicit agreement with somebody else. The article makes some valuable points about non-solicitation agreements. High net worth clients can often leverage their wealth to negotiate some alternative deal with respect to a non-solicitation agreement. In a divorce situation, for example, an attorney may need to get creative when negotiating a divorce settlement with a spouse who is subject to a restrictive covenant such as an agreement not to solicit clients. Family law issues involving this kind of agreement or clause in an employment relationship are often tangled and complex matters.
Further complicating the matters is the fact that there are many different types of non-solicitation agreements. One thing that I found interesting in the article was the discussion about stock, which can be an investment risk whether owned by a business owner or gifted or bequeathed to an heir. What happens to stock in a high net worth estate when there are non-solicit agreements, especially if the heirs of an estate own the stock? What if a high net worth spouse in a divorce will become entitled to the stock? A non-solicit agreement with an organization, business, employee or contractor can have long term ramifications for family law issues in an estate or divorce proceeding.
Scott L. Levine is very familiar with the intricacies of how to get around non-solicitation agreements on behalf of high net worth clients. He provides compassionate legal counsel to his clients in matters related to employment agreements and family law issues. His focus is on finding creative solutions and advising the best path forward for positive outcomes, while respecting the long-term goals of his clients with respect to their wealth and family legacy interests. As the article points out, “not all noncompete and non-solicitation clauses are enforceable,” so it’s important to get experienced legal representation before signing or not determining your rights and obligations under an agreement that you have signed. Family law cases can be sensitive and complicated, and you may not want to get trapped in a position where you didn’t understand your rights and obligations, or unintended consequences were not discussed.
Don’t let a long-term client or employee leave with the bulk of your business’ clients. This is why it’s important to have your agreements thoroughly evaluated if you think there is any chance of it being violated. Get the right kind of advice to prevent a violation. I have represented a number of clients in these situations, and am happy to discuss your legal options in either direction of non-compete and non-solicit agreements, whether in the context of estate settlements, divorces, or other situations.
