What is a freezing order?

A freezing order, also known as a freezing injunction, is a temporary injunction issued by the court to prevent one party from disposing or dealing with their assets.

In divorce or dissolution cases, it is often used by the applicant to prevent the respondent from obstructing financial proceedings and trying to conceal or dissipate assets that the applicant has a rightful claim to.

In this blog, we will cover:

• What is a freezing order?
• How can assets be concealed?
• What assets can be frozen?
• How can I apply for a freezing order?
• How long can a freezing order last?

What is a freezing order?

A freezing order in divorce proceedings is a legal injunction issued by the court to prevent one spouse from disposing of assets before a financial settlement is reached.

It aims to safeguard assets, ensuring they remain available for fair distribution during divorce proceedings.

This order can freeze bank accounts, property sales, or any other assets to prevent one party from removing marital assets unfairly.

Freezing orders are typically granted if there's a risk of assets being hidden or disposed of to avoid equitable division. They play a crucial role in ensuring transparency and fairness in divorce financial settlements.

How can assets be concealed?

Common strategies for concealing assets during a divorce include dissipating savings by spending money, relocating funds to alternative accounts or third parties like a new partner's account, transferring assets to offshore tax havens outside of the UK, selling or re-mortgaging properties to diminish equity, and placing savings into a trust.

These methods are likely to be subject to legal scrutiny, as family courts aim to ensure fair and transparent asset division during divorce proceedings.

What assets can be frozen?

During a divorce, various assets can be frozen, including bank accounts, investments, shares (both private and public), property, land, and motor vehicles.

Less tangible assets such as goodwill, insurance premiums, intellectual property rights, and even cryptocurrency may also be frozen under specific circumstances.

The freezing of assets aims to ensure a comprehensive assessment of all of the wealth accumulated during the marriage.

How can I apply for a freezing order?

To apply for a freezing order during a divorce, you should consult with a family law solicitor to assess the specific circumstances of your case.

Typically, you'll need to demonstrate a risk of dissipation of assets or unfair financial conduct by your spouse. Your solicitor will help you prepare a detailed case outlining the relevant facts and evidence.

This application will then be submitted to the Family Court or if the assets are substantial and complex, to the High Court.

The court will assess the merits of your case, considering the urgency and potential damages.

Consideration will also be given on whether to make the application without notice to the respondent or with short notice to the respondent. Legal guidance is advisable to navigate the process of freezing assets.

How long can a freezing order last?

Freezing injunctions in a divorce can initially last for 7-14 days if obtained without notice. Following this, a subsequent hearing allows the court to decide whether to maintain the order, modify its terms, or discharge it based on your spouse or civil partner's application.

If upheld or altered, the order typically remains in effect until the conclusion of the divorce financial proceedings, as deemed necessary by the court.

What happens if the respondent doesn't comply with the freezing order?

If a respondent fails to comply with a freezing order during a divorce they may face serious consequences. By breaching the freezing order, the respondent puts themselves at risk of being held in contempt of court.

This legal violation could lead to various penalties, including the seizure of their assets. The respondent could also face financial consequences such as fines, being subject to a community order, or in extreme cases, receiving a custodial sentence.

It's important to note that the legal repercussions extend to third parties who willingly assist or permit the respondent to breach the order.

Non-compliance with a freezing order not only jeopardises the individual's financial stability but may also have legal consequences, emphasising the importance of adhering to court orders during divorce proceedings.

Contact our freezing order solicitors in Northwich, Cheshire

If you’d like to discuss your legal needs with one of our experienced freezing order solicitors today, give us a call on 01606 48777 or email info@susanhowarthsolicitors.co.uk.