Almost unequivocally, divorcing parties are required to disclose the nature and extent of their finances, including income, cash flow, and assets. Where a divorcing spouse owns a significant interest in a closely-held business, that party must disclose the full economic contours of the business upon request from the other party. The court will enforce such “discovery” requests so long as the information sought is relevant to the financial picture of the business-owning spouse. The exception is where the parties settle matters by agreement. Recent Pennsylvania Superior Court precedent provides that a divorcing party may waive his or her right to full economic disclosure. However, the waiver must be explicit, and the agreement must be made absent fraud, misrepresentation or duress. If these requirements are met, the court will not inquire as to the “fairness” of an agreement.
At Wilder Mahood McKinley & Oglesby, we are highly skilled in navigating the waters of a complex divorce, where high value assets, such as a business, may be involved. Indeed, “we wrote the book” on it. If you have concerns regarding the impact a separation or divorce may have on your business, contact us for a consultation.
