When Is an NDA Necessary in a Divorce?

 Posted on March 06, 2025 in Divorce

A non-disclosure agreement (NDA) is usually associated with a business rather than a marriage. However, there are times when an NDA can - and should - be part of a couple’s marriage and divorce. NDAs are often known as confidentiality agreements, which legally limit what details can be shared about business practices or the details of a marriage.

Celebrity couples often use NDAs when they marry to limit negative press and preserve reputations in the event of a divorce. In our current social media era, an NDA might be a good idea for virtually any divorcing couple, as it is all too easy to vent on social media publicly. If you believe your divorce could benefit from an NDA agreement, speaking to a skilled Will County, IL family law attorney can be helpful.

What Is the Purpose of an NDA In a Divorce?

A non-disclosure agreement in a divorce is a legal contract that limits the information that can be shared by the divorcing spouses. Some of the reasons an NDA is used might include:

• Keeping financial details of the divorce private
• Keeping parenting decisions private
• Protecting any sensitive information either spouse learned during the marriage
• Preventing the sharing of any personal details either spouse was privy to during the marriage
• Preventing the disclosure of business information
• Keeping the details of asset division, spousal support, and child custody private
• Preventing the sharing of photos or information about children on social media

What Happens When One Spouse Breaks an NDA?

Breaking an NDA is not a criminal offense; it is a civil breach of contract with civil penalties. When the court rules in a person’s favor regarding breaking an NDA, the penalties are usually financial in nature. The NDA will usually outline each party's obligations and responsibilities while specifying the consequences for violating the agreement. All relevant parties must sign a legal, effective confidentiality agreement, including both spouses and their attorneys. This ensures everyone is aware of his or her obligations and responsibilities.

Primary Benefits Associated With an NDA Used During a Divorce

The primary benefit of an NDA is the protection of privacy, as it prevents the disclosure of financial records, personal information, and other confidential documents or information related to either spouse. Confidentiality agreements actually encourage open, honest communication between the spouses because they can feel secure knowing nothing that is said will be reported to a third party. Confidentiality agreements protect the reputation of both spouses, minimizing the risk of reputational harm.

If one or both spouses own a business, an NDA is crucial for protecting trade secrets, client lists, or other types of proprietary information. While most business owners simply prefer to keep their business records and information confidential, in some cases, a partnership agreement, LLC agreement, or company policy requires that they do so. When one or both spouses own a business or businesses, the only way to assess alimony, child support, and the division of marital assets is to accurately determine the business’s income stream.

Are There Alternatives to an NDA During Divorce?

Alternative forms of divorce, like private mediation or collaborative divorce, have built-in privacy protections, unlike court proceedings, which are public. A couple may also ask that certain court records be sealed to protect sensitive divorce information from public disclosure. While these alternatives can be helpful, they may not offer the same level of protection as an NDA.  

Contact a DuPage County, IL Divorce Lawyer

If you believe an NDA could benefit your marriage or your divorce, speak to a knowledgeable Naperville, IL divorce attorney from Law Office of Ronald L. Hendrix, P.C.. Attorney Hendrix is a court-appointed mediator, holding a master’s degree in guidance and counseling in addition to his law degree. Call 630-355-7776 today to schedule your free consultation.