Our family law solicitors take a look at why you may need an urgent freezing injunction to prevent assets disappearing
Advantages and disadvantages
The main advantage of a freezing injunction is that it will preserve the asset or assets you believe are at risk of disappearing. Prevention is much better and reliable than attempting recovery after the asset is gone.
Applying for a freezing injunction can also bring a financial dispute to a head and more often than not it encourages early settlement without the need for a formal hearing. This can save costs in the long run.
However, if you apply for an injunction inappropriately, it could be costly for you in terms of having to pay damages to your former spouse.
Not all transfers of assets are aimed at devaluing your former partner’s estate. For example, your former partner may legitimately transfer assets by selling a property at market value or selling a business for the valued rate. These transfers may be getting rid of one asset but they will usually mean an increase in another asset, typically cash in the bank. An injunction would not be appropriate in these circumstances.
An injunction can put a burden on you to provide full documented details of your assets to the court. If the freezing order is to apply to foreign assets also, then you will have the additional step of registering the court order with the foreign jurisdiction as it will not automatically apply.
How we can help
Applying for an injunction is not a step that is taken lightly, and it is important that you seek early legal advice as delay alone could be a reason for your application failing. Obtaining early expert advice is important in order that assets can be preserved, and to ensure you obtain a fair settlement.
For further information, please contact Richard Staton in the family law team on 01709 377412. Bradford & Son is in Rotherham, South Yorkshire.