In some cases, individuals deliberately move, sell, or transfer assets to reduce what is available for division. This behaviour can significantly impact the fairness of a financial settlement, but the law provides powerful tools to prevent it.
What is a freezing order?
A freezing order is a court order that temporarily prevents someone from disposing of or dealing with their assets. It is used when there is evidence that a person intends to hide or reduce assets to defeat the other party’s financial claim.
Freezing orders can apply to:
- Divorce and financial remedy proceedings
- Judicial separation or nullity
- Civil partnership dissolution
- Financial claims after an overseas divorce
- Unmarried couples (through the court’s inherent jurisdiction)
Common examples are transferring a valuable property or business interest to a family member at a significant undervalue, or transferring substantial funds out of their bank accounts with no reasonable justification.
When assets have already been disposed of
If assets have already been transferred or sold, the court may be asked to set aside the transaction. This cancels the disposal so the asset can be brought back into the financial settlement.
What evidence do you need for a freezing order?
To obtain a freezing order, the applicant must show a real risk that the other party will dissipate assets. Suspicion alone is not enough.
Useful evidence may include:
- Bank statements showing unexplained withdrawals
- Large transfers to third parties
- Attempts to sell or transfer property quickly
- Sudden changes in financial behaviour
The key test is whether the dissipation would prejudice the applicant’s financial claim.
Costs and practical considerations
Applying for a freezing order can be costly, and the respondent will almost always oppose it. Before proceeding, it is important to consider:
- The value of the asset at risk
- The likelihood of success
- Whether the legal costs are proportionate
If the application succeeds, the court may order the respondent to pay some of the applicant’s legal costs.
Other ways to protect property during divorce
Freezing orders are not the only option. Depending on the circumstances, other protective measures may be available:
- Home rights notice: If the family home is owned by one spouse, the other can register a home rights notice. This prevents the property from being sold or mortgaged without their consent; or
- Land Registry restrictions: For properties that are not the family home, it may be possible to register a notice or restriction to prevent dealings with the property until financial matters are resolved.
Speak to our specialist divorce solicitors
If you’re looking for support in relation to freezing orders, our expert divorce solicitors can help. Get in touch by completing the form below.