For Celebrity Clients, Professionals and Wealthy individuals, Even Backroom Meetings With Judges Can Become Front Page News. Knowing The Risks Is The First Step In Keeping Personal Information Private
By any measure, divorce exacts a heavy toll. Financial, emotional and logistical matters are invariably complicated by shifting family dynamics and factual disputes. In many cases, the only thing most separating parties can immediately agree on is the need to shield children from the ugliness of the process. For celebrities and other ultra-wealthy clients, this often means preserving the family’s good name and legacy for future generations.
“Celebrity clients nearly always arrive at a settlement rather than going to trial. After legal costs, privacy concerns are probably the biggest reason why,” according to Judith L. Poller, partner and co-chair of the Family Law Group at Pryor Cashman LLP. “While in New York, there is an expectation of privacy in court filings, unfortunately it has become apparent that this expectation is no longer a forgone conclusion, even when both parties agree that confidentiality is in the best interests of children”.
“Angry parents all too often forget their obligation to shield their children from the ugliness of the process, and that includes celebrities. They may say they are trying to protect their kids from the spotlight, but if they are engaged in a battle with their ex, the kids are the collateral damage. Parents leak information or authorize others on their team to do so, in an effort to gain control,” observed Stacy D. Phillips, founder and Managing Principal at Phillips Lerner LLC in Los Angeles.
New York and several other States grant document access only to litigants and counsel. This might create a false sense of confidence for clients. A thriving secondary market for salacious information on high-profile families has made it more difficult to prevent leaks than ever. Understanding jurisdictional and venue distinctions offers some degree of protection.
“Everyone understands that anything said in court is on the record. Some judges are more inclined than others to compel parties toward settlement by facilitating private backroom discussions. In California, where all filings, except paternity, are open to the public, clients have the ability to hire private judges to hear arguments and make rulings confidentially,” said Phillips. ”Even so, hearings before a private judge are considered public trials and technically anyone can attend, but in reality the press does not. And, all pleadings must still be filed at the public courthouse.”
Even when documents are supposed to be sealed, as with confidential custody affidavits, private information has a pesky way of becoming public.
“Tort claims often seek damages for wrongdoing not covered by marital law, including allegations of assault or sexually transmitted diseases. Even if unfounded these accusations can be incredibly harmful to business prospects and professional relationships,” said Poller. “As ultra-wealthy clients pursue counterclaims, they need to make sure that all professional resources – including financial, family office and crisis communications professionals – are working in concert to protect family assets.”
Thus, in pursuing the path of divorce, one has to fully understand the expectation in their jurisdiction regarding whether the proceedings and the filings are kept private. And even if they are, there does need to be the “reality” factor of whether in fact the information will remain private. That discussion should be had with the professionals involved and care taken to insure privacy for all involved.
