Alex Brereton and Eri Horrocks examine why NDAs included in divorce agreements are becoming increasingly popular in the FT Adviser

Alex and Eri’s article was published in the FT Adviser, 13 August 2024, and can be found here.

Alex Brereton, Partner and Eri Horrocks Senior Associate in our Family & Relationships department, discuss the growing use of non-disclosure agreements (NDAs) in divorce settlements.

They explain that NDAs, once primarily associated with high-profile or celebrity divorces, are now becoming increasingly widespread among the general public. This shift is largely driven by the rise of social media and the growing awareness of how easily private information can be made public, potentially causing lasting reputational damage.

The article outlines how NDAs are now commonly included in both pre-nuptial agreements and financial settlements during divorce. These agreements can range from simple clauses protecting financial details to more complex provisions covering deeply personal matters such as infidelity, addiction, or disputes with third parties. In some cases, the inclusion of an NDA becomes a central point of negotiation, with significant financial concessions made to secure confidentiality. The authors emphasise that the content of each NDA is tailored to the specific concerns of the parties involved.

Alex and Eri also highlight the broader implications of this trend. While NDAs can offer valuable protection and peace of mind, they caution that their use must be balanced against concerns about fairness and transparency especially where there may be a power imbalance between parties. They stress the importance of legal advice and careful drafting to ensure that NDAs are enforceable and ethically sound. Ultimately, the article reflects a growing recognition that privacy is a key concern in modern family law, and NDAs are becoming an increasingly important tool in managing it.

Read the full article on the FT Adviser website [external link].