A Colorado divorce is an emotionally fraught process that not only involves sensitive personal issues, but also sensitive financial information that many divorcing spouses would prefer to keep private. Is it possible to keep a divorce private in Colorado, including in high-asset cases? The Colorado Rule of Civil Procedure 16.2 (C.R.C.P. 16.2) states the following:
“If both parties are represented by counsel, counsel may submit a Stipulated Case Management Plan signed by counsel and the parties. Counsel shall also exchange Mandatory Disclosures and file a Certificate of Compliance.”
Fortunately, despite the requirement for full financial disclosure, there are ways to limit the information available in public records.
Protecting Your Family’s Privacy During a High-Asset Divorce In Colorado
You shouldn’t have to add concerns about exposing sensitive financial and business details during the divorce to the personal distress you’re already experiencing. Unfortunately, when a divorce goes to trial, court records are publicly accessible. The best way to protect your financial information from the public record is to keep as much of your divorce as possible out of court. An experienced divorce lawyer in Boulder can advise you on how to minimize the information on court records by taking actions such as the following:
- Choosing a private process to negotiate an out-of-court divorce settlement agreement, such as a collaborative divorce in which both parties agree in writing to work out their disputes without going to court
- Attending mediation sessions and negotiations with attorneys present to work out a settlement agreement on all aspects of Colorado divorce, including asset division in a manner that’s “fair and equitable,” child custody and a parenting schedule, and spousal support
- Choose arbitration or a hired private judge to resolve disputes in a court-like process with binding decisions without going to court
- Exchange sensitive business and financial data through private portals or in sealed rooms
- Insist on non-disclosure agreements (NDAs) for legal staff and involved family members
- Limit court filings with redactions whenever allowed, such as for the names and addresses of minor children
It’s also beneficial to avoid posting about the divorce on social media and to review past posts that could become public during the divorce.
Use Legal Mechanisms to Support Privacy During a High-Asset Divorce In Colorado
Less commonly, a divorcing spouse or both spouses may file a motion to the court asking to seal the divorce record. This requires compelling evidence that a safety concern or other issue, such as proprietary business information, outweighs the right to public access.
Under some circumstances, high-asset divorcing spouses may obtain protective orders limiting disclosures to attorneys only.
Why Is Maintaining Privacy Important in High-Asset Colorado Divorces?
Exposing your business details and financial information to the public eye can compromise important aspects of your financial records and business details that may adversely impact business negotiations and other dealings, and can even potentially decrease the value of some types of assets.
Colorado’s divorce law only requires financial disclosures between the parties, not to the court, unless disputes require a trial. The key to keeping a high-asset divorce private in Colorado is to avoid court.