A freezing order is a powerful legal tool designed to stop someone from disposing of or hiding assets before a court judgment is enforced. It’s most commonly used in cases where there’s a real risk that a person may try to move money, property, or investments out of reach, often in situations involving financial disputes, fraud, or divorce proceedings.
How Does a Freezing Order Work?
A freezing order (previously known as a Mareva injunction) is granted by the court to temporarily restrict an individual or business from dealing with certain assets. This might include bank accounts, shares, real estate, or even assets held abroad. The purpose is not to transfer ownership but to preserve the value of the assets until the case is resolved.
To obtain a freezing order, the applicant must present strong evidence showing that there’s a genuine risk of the assets being dissipated and that there’s a good arguable case against the respondent. Because freezing orders are serious and can have wide-ranging effects, courts grant them only when absolutely necessary and usually under strict conditions.
Why Legal Advice Is Essential
Applying for a freezing order requires speed, accuracy, and detailed knowledge of the law. A poorly prepared application can be rejected, or worse, lead to legal costs and damages if the order is deemed unjustified.
It’s equally important for anyone served with a freezing order to act quickly and seek legal representation, as failing to comply with the court’s terms can result in serious penalties, including contempt of court.
At Fitz Solicitors, we provide clear, strategic advice to both applicants and respondents in freezing order cases. Our experienced team ensures that your rights are protected, your position is properly presented, and every step is handled with care and precision.
If you believe assets are at risk, or you’ve been served with a freezing order, contact Fitz Solicitors today. We’ll guide you through the process and help you take swift, effective action to protect your interests.