What is a Freezing Order?

Freezing orders may be used in the divorce process when there are concerns that one party is trying to hide or dispose of their assets to avoid a fair financial settlement. Also known as a freezing injunction, this type of court order prevents an individual from hiding or disposing of their assets. In this article, we look at how freezing orders work, what assets they can apply to, and how to get one.

If a freezing order is granted it will stop your ex from dealing with certain assets. This will mean they cannot sell, transfer, or hide assets while financial proceedings are ongoing. The aim of a freezing order is to make sure that assets remain available for division between the parties so there can a fair outcome to the divorce settlement.

There are several ways that are used when trying to conceal assets in a divorce. One common way is transferring assets to family members or friends. Sometimes complex corporate structures may be created to obscure ownership of assets, and funds may also be moved to offshore accounts and other countries. Another approach is the underreporting of income or undervaluing of assets. If you think that assets are being hidden, legal action, including obtaining a freezing order, may be necessary to protect your financial interests.

A freezing order can be applied to bank accounts to prevent withdrawals or transfers. It can also be applied to property to stop sales or transfers. Shares and investments, business interests, vehicles, jewellery and other valuable items, can also be included in a freezing order. When assets are held abroad, the court may be able to grant a worldwide freezing order.

An application to the court is made to obtain a freezing order. This will normally be done on an urgent, without-notice basis, to ensure it prevents assets being move before the respondent knows the order is in place.

For a freezing order to be successful, you must be able to provide evidence that assets are at risk. There must also be clear legal claim showing your entitlement to the assets in question. You will also have to write a sworn statement (called an affidavit) which details your concerns about assets in question.

A freezing order normally remains in effect until a further court hearing on whether it should be extended or a final financial settlement is reached. If circumstances change, either party can apply to the court to change or discharge the order.

It is a serious office to breach a freezing order. The court may impose fines and financial penalties or seizure of assets. If you breach a freezing order you may be found in contempt of court, and, in extreme cases, imprisoned. The respondent must comply with the order and fully disclose their financial situation to the court.

If you suspect that your ex-partner is attempting to hide or dispose of assets, you must act quickly. Our experienced family law solicitors can assess your case, determine whether a freezing order is appropriate, help gather evidence to support your application, prepare urgent court applications and represent you in court.

We have extensive experience in handling complex financial disputes and asset protection in divorce and separation cases. If you need urgent advice on securing a freezing order, contact us today for a confidential consultation.

Ready to take the next step? As leading divorce solicitors in Milton Keynes, our team of family law specialists can advise and guide you from the moment we start working with you. As well as our head office in Milton Keynes, we also have offices in Bicester, Watford, and London where we can arrange appointments to see you in person. Talk to us in confidence and find out where you stand. Get in touch – we’re here to help.

This article is intended for the use of our clients and other interested parties. The information contained in it reflects the author’s view and is believed to be correct at the date of publication. However, it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional legal advice.