When relationships end, emotions often run high, and financial disagreements can escalate quickly. One particularly concerning issue arises when a partner begins to dissipate or hide assets, potentially reducing the funds available for division during separation. In such cases, obtaining a freezing injunction may be the solution to safeguard your financial interests. At Oliver & Co Solicitors, we provide expert advice on securing injunctions to ensure a fair division of assets.
What is a Freezing Injunction?
A freezing injunction (formerly called a Mareva injunction) is a court order that prevents an individual from disposing of, transferring, or hiding assets. This legal tool is particularly useful in family law cases where one party suspects the other of acting to undermine the financial settlement process.
Freezing injunctions can apply to a wide range of assets, including:
- Bank accounts
- Property
- Shares or investments
- Valuable items such as vehicles or jewellery
When Can You Obtain a Freezing Injunction?
To secure a freezing injunction, you must demonstrate:
- A substantive cause of action: There must be an underlying claim, such as a financial settlement or divorce proceeding, where the dissipation of assets could prejudice the outcome.
- A real risk of dissipation: You need evidence showing that your partner is likely to conceal or reduce the value of assets to such an extent that you are not likely to receive what you would be entitled to. Examples include transferring funds to offshore accounts, selling properties below market value, or liquidating investments.
- Assets to freeze: The assets in question must be identifiable and within the court’s jurisdiction.
The court will also consider whether granting the injunction is just and proportionate. Freezing orders are intrusive measures, so they are not issued lightly.
How Does the Process Work?
The process for obtaining a freezing injunction involves:
- Urgent Application: Freezing injunctions are often sought on an emergency basis, sometimes without notifying the other party (known as Ex Parte applications). This prevents the dissipation of assets before the order is issued.
- Filing Evidence: You must present clear and compelling evidence of the risk of dissipation. Witness statements, bank statements, and other financial records can support your case.
- Court Order: If the court is persuaded that an injunction is appropriate, then once granted, the freezing injunction will be provided immediately, so that it can be served urgently on the relevant body before any more funds or property is dissipated.
Challenges and Defences
The person arguing against the application for an injunction may challenge it on several grounds, such as:
- Lack of evidence demonstrating a risk of dissipation
- Disproportionate restrictions on their ability to manage finances
- Claims that the assets in question are solely theirs and not subject to division
In such cases, both parties may need to attend court hearings to present their arguments.
Why Freezing Injunctions Matter
Without a freezing injunction, dissipated or hidden assets may become unrecoverable, leaving the affected party at a significant financial disadvantage. Acting swiftly is critical to ensure that marital or joint assets remain available for fair distribution during separation or divorce proceedings.
Practical Steps to Protect Your Interests
If you suspect your partner is reducing the value of shared assets, consider the following steps:
- Gather Evidence: Document any suspicious financial activity, such as sudden withdrawals, property sales, or changes in business ownership.
- Seek Legal Advice Promptly: Acting quickly can prevent further dissipation. Experienced solicitors can assess your situation and guide you through the injunction process.
- Maintain Transparency: Be prepared to disclose your own financial position fully, as courts require fairness and openness from both parties.
- Consider Mediation: If the risk of dissipation is low, alternative dispute resolution methods like mediation may provide a less confrontational path forward.
We Can Help
Freezing injunctions are powerful tools that can safeguard your financial future during a separation or divorce. However, their complexity requires skilled legal representation to navigate the process effectively.
At Oliver & Co Solicitors, our experienced family law team is here to support you in securing your assets and ensuring a fair financial settlement. Contact us today at 01244 312306 for expert guidance tailored to your situation. Together, we’ll help you protect what’s rightfully yours.
