Maintaining privacy in a high-net-worth divorce in North Carolina requires strategic planning and experienced legal guidance, as the state’s lack of automatic privacy protections can expose sensitive financial and personal information to public scrutiny.

Key Takeaways:

  • In North Carolina, divorce proceedings and filings are public, making high-net-worth individuals vulnerable to unwanted exposure of financial and personal details.
  • Leveraging mediation, arbitration, and confidentiality agreements can prevent sensitive information from becoming public record.
  • Reducing your digital footprint, implementing cybersecurity protocols, and choosing an attorney experienced in high-net-worth cases are critical steps to safeguarding your privacy.

For high-net-worth couples going through divorce, privacy is one of the most important concerns they often have. Most people are aware that anything that happens in a court of law has the potential to become a matter of public record, but it is especially difficult to maintain confidentiality in divorces in North Carolina, no matter the financial situation of the couple.

In this blog, we’ll talk more about why privacy is such a critical matter for high-net-worth couples, as well as the nuances of this issue specific to North Carolina. We’ll divulge some of the information you need to know about safeguarding your privacy if you’re about to embark on, or are thinking about, a high-net-worth divorce.

Why Divorce in North Carolina is Not Private

In some states (like California and New York, for example), the courts provide mechanisms for individuals to keep certain aspects of their divorce case private, such as sealed records or the ability to file anonymously. This allows parties in high-profile or high-net-worth cases to ensure that sensitive information about their assets, income, or personal issues remains confidential.

Unfortunately, North Carolina offers no such protections, and divorce filings and proceedings are considered a matter of public record. This means that any nosy person with internet access could go snooping into the details of a couple’s divorce and easily find them – everything from financial disclosures to property divisions, to custody disputes and other personal matters.

So what does that mean for you if you’re a high-net-worth individual preparing to go through a divorce in North Carolina? 

For one, your financial information – including detailed financial records like your income, investments, business assets, and real estate holdings – may be disclosed to the public, potentially leading to unwanted scrutiny, business risks, or public gossip. Of course, social security numbers and account numbers are redacted before filing, but a clever individual doesn’t need that information to get started on spoofing your identity or digging into your personal life.

Moreover, leaks regarding your personal life – like allegations of misconduct, disputes over parenting, or other lifestyle details – could damage your reputation, especially if you have a prominent social or professional standing. All of this can create vulnerability for you and your family, making it easier for those with bad intentions to take advantage.

But, without privacy protections, is it even possible to avoid all of this in a North Carolina divorce? The simple answer is yes, but only with the right strategy, which will require working closely with a North Carolina divorce lawyer who has vast experience in high-profile cases.

Best Practices for Protecting Privacy in a High-Net-Worth Divorce

Leverage Mediation and Arbitration

The best and most full-proof way to protect your privacy during a high-net-worth divorce in North Carolina is to reach an agreement through alternative methods of dispute resolution (ADR) like mediation or arbitration, and make litigation your last possible resort.

Mediation is one type of ADR that many couples choose to reach an agreement in their divorce, especially if they have a high-net-worth and privacy concerns. In this process, a neutral mediator facilitates discussion between the parties and their attorneys to help them negotiate and arrive at an agreement on all the issues involved in their divorce, including child custody, asset division, and more.

Arbitration is another type of ADR in which a neutral third-party (called an arbitrator in this process, who is typically an experienced family law attorney) listens to evidence and arguments from both parties regarding the issues in their divorce and makes the final decision in a binding agreement – similar to a judge.

Because both of these ADR methods take place outside of court, everything related to your divorce remains private and nothing becomes a matter of public record (unless you choose to memorialize your resolution in a Consent Order). There is also an opportunity for you to go one step further and institute confidentiality agreements (NDAs) as part of your divorce, ensuring you have an added layer of protection for your privacy.

More on Non-Disclosure Agreements and Confidentiality Language

Non-disclosure agreements (NDAs) and confidentiality clauses are essential tools for safeguarding sensitive information during a divorce, especially in high-net-worth cases. These agreements legally bind all parties involved to keep specific details of the divorce private and prevent the disclosure of financial, personal, or business-related information to the public.

NDAs are highly customizable, so you can explicitly outline what information is considered confidential. Both NDAs and confidentiality clauses incorporated into your settlement agreements or divorce proceedings work to restrict any parties involved in your divorce (such as attorneys, financial experts, or other professionals) from sharing your private information to the media, your business competitors, or even acquaintances.

Keep Your Digital Footprint Small

Reducing your digital footprint as much as possible is going to be vital during the divorce process. This includes everything from limiting your social media use (and especially avoiding any posts that reference your divorce) and being extremely careful on the internet in general. Remember, everything on the internet essentially lives forever, so if you wouldn’t want it being used against you in your divorce, you shouldn’t say or do those things on any online platform.

Additionally, you should communicate with your legal team and determine if further action is required, such as extra cybersecurity measures, secure channels, encryption, or other tools. It may even be necessary to have your legal and financial documents delivered physically rather than through the mail or internet to protect yourself from hackers or cyberattacks.

Why Choosing the Right Attorney is Integral to Protecting Your Privacy

Not every divorce attorney will have experience in high-net-worth divorce cases, so it’s important that you take time to consider each candidate’s experience before you choose, to make sure you have legal support with a proven track record of safeguarding client privacy in your corner. Also, take into account any additional resources they can offer you, such as marketing or PR representatives that they partner with to protect the reputations of their clients.

Learn How Partnering With Triangle Smart Divorce Can Give You An Advantage

Our skilled North Carolina divorce lawyers understand the unique challenges of protecting the privacy of high-net-worth individuals and their families. Our legal team has 200+ years of collective experience. We can help you reach your divorce goals while maintaining the utmost level of confidentiality. Call today to request your initial consultation and learn more about how Triangle Smart Divorce can support you during this time.