Written by Admin | Oct 11, 2019 5:00:00 AM
SPONSORED CONTENT CRAIN’S CUSTOM MEDIA A ROUNDTABLE DISCUSSION FAMILY LAW: EXECUTIVE DIVORCE >>Divorces involving executives, celebrities and other high-profile individuals are frequently complicated, and may entail sensitive information that could be damaging if made public. What changes have you what’s in the public record a CEO for a deposition is spouse for retaining it. seen over the last few years and avoiding details of the different than for trial. The The same applies to stock in how executive divorces settlement becoming public. opponent’s purpose for options that are generally are handled? taking a deposition is to not transferable—terms How do you promote get information that may must be worked out to Donald C. Schiller: The privacy and confidentiality be helpful to them from the protect the spouse entitled “Me Too” era has brought throughout a high-profile party who’s being examined. to compensation for their changes in how businesses divorce? Therefore, the less said by equitable share of their and particularly publicly held the party examined, the marital property interest companies deal with high- Schiller: The best way better. There’s no place for in these corporate-related level executives engaged to promote privacy and sarcasm, and the executive assets. Frequently, when in contentious divorces. confidentiality is to quietly being examined must the other spouse is given Accusations of claimed settle the case before an be careful to give narrow company stock, the CEO spousal abuse or acts of action is filed. However, answers to questions and spouse will negotiate a sexual harassment in the if despite all efforts for an not expand beyond what’s right of first refusal before workplace may have career- amicable solution, if there’s asked. The more said by the the spouse can sell any DONALD C. SCHILLER ending consequences. Public litigation, some things deponent, the more follow stock. Also, complications Founding Partner companies, in particular, may be done to promote up questions they’ll be asked. arise due to companies Schiller DuCanto & Fleck, LLP take these accusations privacy and confidentiality. expecting CEOs to maintain dschiller@sdflaw.com very seriously and board Whenever possible, the How can a busy CEO a minimum stock holding in 312-609-5560 members become alarmed executive’s attorneys should parent maximize his or her the company. about the company’s image seek a protective order either parenting rights? and consequences from by agreement or as a result What other types of DONALD C. SCHILLER is a condoning abusive behavior of a hearing that provides Schiller: If the CEO parent professionals does the founding partner of Schiller by a top executive. that the party receiving wants to maximize parenting legal team frequently DuCanto & Fleck, LLP, a family proprietary and confidential rights, they should focus on consult with, and when do law firm with offices in Chicago, What’s the most common information will not disclose the decision-making factors they typically get involved? Lake Forest and Wheaton. He has question or concern you what they learn or received and not try to exaggerate dedicated his career to serving leaders and their spouses in hear from CEOs and outside of the proceedings. the time they historically Schiller: The executive’s the business, professional, other executives who are Protections from disclosure spent with the children or team may also need to hire entertainment and sports contemplating divorce? are also available for the time that they now want professionals to value assets communities, and is well-versed children’s issues, and medical to spend with the children that are company related, in the complexities of high-net- Schiller: One of the most care and conditions. There in order to significantly including dealing with tax worth and high-profile cases. common concerns of CEOs are special laws, rules parent their children. In issues related to any property He has built a reputation and contemplating divorce is how and procedures where the day-to-day life of the division. Meanwhile, the family law firm around providing to keep the case under the information concerning the children, the CEO may have non-executive spouse’s team unique, personalized solutions radar—quietly handled and medical and mental health very well-made decisions or needs to learn about the for clients. For more than 15 amicably resolved. They’re of the parties, as well as made recommendations that company, its structure and all years, in addition to client usually smart enough to issues concerning children, were generally followed in of the employee benefits and representation, he has taught know that their highly visible are to be kept confidential areas such as healthcare or assets. They’ll also need to divorce practice at the University position creates potential and protected from public education. The CEO should value them and understand of Chicago Law School. problems beyond those disclosure. Ironically, focus on there being no alternatives for dividing with less visible roles in their although an angry spouse good reason to stop the role those assets. business life. It’s important may think their executive they played in raising their for executives to have a legal spouse is a mental case, children just because the What steps can happily team that understands these they certainly don’t want the parties are divorcing. married CEOs take to kinds of issues and how to company to think that and protect themselves in the maximize protection. jeopardize their employment. What are some of the event of a future divorce? unique challenges to What makes high-profile How do you prepare a finalizing property Schiller: Happily married divorces different? CEO to testify at trial or settlements in a CEO CEOs who take aggressive depositions? divorce? steps to protect themselves Schiller: Fame brings in the event of a future public curiosity and interest Schiller: In a trial, the CEO Schiller: CEOs and C-suite divorce may not be happily in what the divorcing should be prepared to tell executives generally have a married much longer. The parties are doing. If either their story, justifying why large part of their net worth best protection is to be individual brings an they should receive the in their company’s various open and honest and do action for dissolution of relief they seek. The CEO employee benefit plans, nothing that raises suspicions marriage, it’s important must understand limitations stock, restricted stock and of dishonesty and mistrust. that they understand the on what they might say stock options. Transferring That’s the best way to consequences. Court files are because of technical rules company stock to the other achieve the quiet, private and rarely sealed except under of evidence. They likely will spouse could jeopardize amicable divorce settlement extraordinary circumstances; not be able to just tell their control or a board seat. If we’ve been discussing. the desire for privacy alone is story as they want to tell stock holdings are large, not a sufficient circumstance. it—they must tell their story there’s often the problem Nevertheless, lawyers through questions asked of the CEO wanting to experienced in handling and answers they give and keep all of the stock, but high-profile cases know not just give a speech or lacking sufficient liquidity techniques for minimizing long narrative. Preparing to compensate the other