When relationships break down, money matters can get tricky. Sometimes, one person might try to hide or get rid of money or property to avoid sharing it fairly. This is where freezing orders come in. They’re a powerful tool in family law that can help protect assets during tough times like divorce or separation.
What is a Freezing Order?
A freezing order is a special kind of court order. It stops someone from using or moving their money or property. Think of it like putting a lock on someone’s wallet or bank account. They can’t spend the money or sell their things until the court says it’s okay.
The main goal of a freezing order is to keep things fair. It makes sure that all the money and property are still there when it’s time to split things up. This helps prevent one person from cheating the other out of their fair share.
When Can a Freezing Order Be Used in Family Law?
Freezing orders are typically used in family law proceedings when there is a risk that one party will try to hide or dispose of assets before a financial settlement can be reached. This can happen in various situations, including:
Divorce or separation:
When couples split up, they need to divide their money and property. If one person thinks their ex might try to hide assets, they can ask for a freezing order to keep everything in place until they reach an agreement.
Financial disputes:
Even if a couple isn’t divorcing, they might disagree about money. A freezing order can help protect assets while they work things out.
International cases:
If one person might move money to another country, a freezing order can stop them from doing this.
Examples of situations where a freezing order might be appropriate:
– A husband suddenly transfers large sums of money to an overseas account
– A wife tries to sell the family home without her partner’s knowledge
– A partner starts moving money between different bank accounts in a suspicious way
– One person in a couple begins selling valuable items like cars or jewelry very quickly
How to Obtain a Freezing Order
Getting a freezing order isn’t easy. You need to show the court that there’s a real risk of assets being hidden or sold off. You also need to prove that it would be fair and right for the court to grant the order.
Professional experts like Dutton Gregory use the following steps when applying for the Freezing order:
Gather evidence:
You need to collect proof that shows why you think assets are at risk. This could be bank statements, emails, or other documents that show suspicious behavior.
Draft an affidavit:
This is a formal statement that explains your situation and why you need the freezing order. It’s important to be honest and give all the relevant facts.
File the application:
Your lawyer will submit your application and affidavit to the court. This is often done without telling the other person, to prevent them from moving assets before the order is in place.
Court hearing:
You’ll need to go to court to explain your case to a judge. The judge will ask questions and decide whether to grant the order.
Court order:
If the judge agrees, they’ll issue the freezing order. This legal document sets out exactly what the other person can and can’t do with their assets.
What Assets Can Be Frozen?
A freezing order can be applied to a wide range of assets, including:
Bank accounts:
This stops someone from withdrawing money or closing accounts.
Property:
The order can prevent someone from selling a house or transferring ownership.
Investments:
Things like stocks, bonds, or pension funds can be frozen.
Vehicles:
Cars, boats, or other valuable vehicles might be included in the order.
Business interests:
If someone owns a business, the order might stop them from selling it or moving money out of the company.
Who Can Apply for a Freezing Order?
Anyone who has a legitimate financial interest in the assets in question can apply for a freezing order. This typically includes:
- Spouses or civil partners: Married couples or those in civil partnerships can apply during divorce proceedings.
- Cohabitants: Unmarried couples who live together might be able to apply in some cases.
- Children: In rare cases, children (usually through a legal representative) might apply to protect their future inheritance.
- Creditors: People who are owed money might apply for a freezing order to stop assets from disappearing.
What are the Implications of a Freezing Order?
A freezing order has serious implications for both the applicant and the respondent.
For the applicant:
– Protection of assets: The main benefit is that it keeps assets safe until a fair division can be agreed upon.
– Legal costs: Getting a freezing order can be expensive, and you might have to pay the other person’s legal costs if you lose.
– Undertaking: You usually have to promise to pay for any losses the other person suffers if the court later decides the order was wrong.
For the respondent:
– Restriction on dealing with assets: The person can’t use or move their money and property freely.
– Contempt of court: Breaking the order is a serious offense that can lead to fines or even jail time.
– Legal costs: They might have to pay for lawyers to defend against the order.
– Reputational damage: Having a freezing order against you can harm your reputation, especially in business.
Defending a Freezing Order Application
If you are facing a freezing order application, it is crucial to seek legal advice from a specialist family lawyer immediately. They can help you to:
Challenge the application:
Your lawyer can argue that there’s no real risk to the assets or that the order is unfair. They might show evidence that you’re not trying to hide anything.
Negotiate a settlement:
Sometimes, it’s better to agree on how to handle assets rather than fight the freezing order in court.
Vary the order:
If a freezing order is already in place, your lawyer can ask the court to change it. For example, you might need access to some money for living expenses or to run a business.
Conclusion
Freezing orders are a powerful tool in family law, but they’re not to be taken lightly. They can protect assets and ensure fairness, but they also have serious consequences for everyone involved. If you’re considering applying for a freezing order, or if you’re facing one, it’s crucial to get expert legal advice.
