Divorce proceedings can be complex, especially for business owners whose livelihoods are at stake. Maintaining the integrity of a business often requires protecting valuable assets throughout the divorce.
You might have sensitive trade secrets among these valuable assets. Proprietary formulas, client lists or internal strategies are all subject to exposure during divorce discovery.
What is divorce discovery?
During the divorce process in New Jersey, discovery requires both parties to disclose financial and business information. This process helps the court assess marital assets and their value. However, sharing sensitive trade secrets can present risks if the other party uses or discloses them improperly. New Jersey law recognizes the importance of protecting trade secrets and provides methods to safeguard them during divorce.
How can you protect trade secrets during divorce?
One effective step involves limiting the scope of discovery requests. The law enables you to object to overly broad or irrelevant requests. If these requests would reveal confidential business information unnecessarily, it is likely that the court will uphold the objection. In this way, business owners can ensure the disclosure of only the most relevant information.
Additionally, New Jersey law permits the use of confidentiality agreements during discovery. These agreements restrict the use and sharing of disclosed information. A confidentiality agreement requires both parties and their representatives to keep sensitive business information private.
The court may also issue protective orders to shield trade secrets. A protective order can limit access to confidential documents and mandate their secure handling. For example, the court may allow only specific individuals, such as financial experts, to access certain business records.
As a business owner, it is important to document your trade secrets carefully, both before and during a divorce. Maintaining accurate records of proprietary information can strengthen your argument that specific assets qualify as trade secrets. This evidence can support your request for confidentiality measures.
