{"id":2913,"date":"2024-11-06T21:19:02","date_gmt":"2024-11-07T03:19:02","guid":{"rendered":"https:\/\/www.mcclure-lawgroup.com\/blog\/?p=2913"},"modified":"2024-11-08T10:21:10","modified_gmt":"2024-11-08T16:21:10","slug":"financial-consequences-for-engaging-in-prohibited-behaviors","status":"publish","type":"post","link":"https:\/\/www.mcclure-lawgroup.com\/blog\/financial-consequences-for-engaging-in-prohibited-behaviors\/","title":{"rendered":"Financial Consequences for Engaging in Prohibited Behaviors"},"content":{"rendered":"

Parties in a high profile divorce might want to enter an agreement that goes beyond dividing the property. Celebrities, business owners, or CEOs might seek an agreement that prohibits their former spouse from disclosing private information, disparaging them or their business, or engaging in other behaviors that might damage their reputation or their business.\u00a0 The agreement can include liquidated damages for violations.\u00a0 In a recent case<\/a>, a former wife, her former husband, and his business all appealed a judgment confirming an arbitration award relating to an agreement incident to divorce.<\/p>\n

The Agreement<\/strong><\/p>\n

At the time of the divorce, the parties entered into an agreement incident to divorce providing for arbitration if a party engaged in certain conduct prohibited by the agreement.\u00a0 The agreement provided for an award of the greater of $500,000 or actual damages.\u00a0 Additionally, the wife would forfeit interest in a trust as liquidated damages if she engaged in certain behaviors.\u00a0 The parties agreed to arbitrate any issue of whether a party committed a prohibited behavior, whether the wife violated specified provisions in the agreement, and whether the wife\u2019s interest in the trust would be forfeited as a result of violating provisions of the agreement.\u00a0 Binding arbitration was to occur within 90 days of notice of a violation.\u00a0 Pursuant to the Agreement, the losing party would pay the arbitration costs and the other parties\u2019 costs and fees. \u00a0The husband\u2019s company was a third party to the divorce and to the agreement. The decree incorporated the agreement.<\/p>\n

Arbitration Demand<\/strong><\/p>\n

The husband and his company subsequently demanded arbitration, alleging the wife violated the agreement.\u00a0 The wife objected and argued the forfeiture and liquidated provisions were unenforceable and that the arbitration clause was therefore also unenforceable.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Parties in a high profile divorce might want to enter an agreement that goes beyond dividing the property. Celebrities, business owners, or CEOs might seek an agreement that prohibits their former spouse from disclosing private information, disparaging them or their business, or engaging in other behaviors that might damage their reputation or their business.\u00a0 The […]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[269,4,491],"tags":[],"class_list":["post-2913","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-divorce","category-enforcement"],"yoast_head":"\nFinancial Consequences for Engaging in Prohibited Behaviors — Texas Divorce Attorney Blog — November 6, 2024<\/title>\n<meta name=\"description\" content=\"Parties in a high profile divorce might want to enter an agreement that goes beyond dividing the property. 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