Freezing Assets During Divorce: Your Legal Shield Against Malicious Financial Moves
In contentious divorces or separations, partners may try to hide, deplete, or dispose of shared assets to prevent their ex from receiving a fair share. This post explains the power of a Mareva Injunction (or freezing order) in Family Law, detailing the evidence required to freeze bank accounts and property, and advising on crucial, less adversarial alternatives.
The Risk: Why Assets Disappear During Separation
Divorce and separation are highly emotional periods. Under stress, a person may act out of malice or fear, attempting to liquidate or hide marital assets—cash, investments, or property—to frustrate a future property settlement.
To protect your financial entitlements from such actions, Australian Family Law allows for Injunctions, which are court orders that either forbid or require a specific action. The most frequent financial injunction is the Mareva Injunction, or Freezing Order.
Understanding Mareva Injunctions (Freezing Orders)
A freezing order is a serious step, not granted lightly by the Court. It effectively protects your assets by preventing your ex-partner from removing or disposing of them until a final Property Settlement is reached.
When is a Freezing Order Granted?
To apply for an injunction to freeze bank accounts or other assets, you must provide the Court with strong evidence proving:
An Argüable Case: You have a strong case for a future financial judgment (e.g., a property settlement entitlement).
Evidential Risk: There is a real and substantial risk that your ex-partner will dispose of or remove assets, which would prevent any future court judgment from being satisfied.
Reasonable Scope: The injunction must only cover the value of assets required to satisfy the likely judgment, causing "minimal disturbance" to the other party.
Contempt of Court: If a freezing order is granted, and your ex-partner violates it by removing funds or disposing of assets, they face serious consequences, including fines or imprisonment.
What is an Ex Parte Application?
In urgent cases where notifying your partner would prompt them to immediately dispose of assets, the Court can hear your application Ex Parte (from one party only). If granted, the order is issued without your ex-partner's knowledge until it is served, preventing them from accessing the frozen funds.
Alternatives to Adversarial Injunctions
While necessary in cases of extreme distrust, a freezing order is a highly adversarial move that can cause long-term resentment, especially if children are involved. Falzon Legal always strives for more peaceful and constructive solutions first:
Consent Orders: If you can reach an agreement (often through mediation) regarding the division of cash and assets, the agreement can be formalized into a Consent Order. This is legally enforceable under the Federal Circuit and Family Court of Australia (FCFCOA).
Binding Financial Agreement (BFA): This is a contract that details how assets will be divided upon separation or divorce. It can be made before, during, or after the relationship and removes the need for court intervention.
If you suspect your ex-partner is depleting shared assets, you must seek legal guidance immediately. Whether through a firm injunction or a peaceful agreement, protecting your assets is critical to securing your post-separation future.
Freezing Assets During Divorce: Your Legal Shield Against Malicious Financial Moves
In contentious divorces or separations, partners may try to hide, deplete, or dispose of shared assets to prevent their ex from receiving a fair share. This post explains the power of a Mareva Injunction (or freezing order) in Family Law, detailing the evidence required to freeze bank accounts and property, and advising on crucial, less adversarial alternatives.
The Risk: Why Assets Disappear During Separation
Divorce and separation are highly emotional periods. Under stress, a person may act out of malice or fear, attempting to liquidate or hide marital assets—cash, investments, or property—to frustrate a future property settlement.
To protect your financial entitlements from such actions, Australian Family Law allows for Injunctions, which are court orders that either forbid or require a specific action. The most frequent financial injunction is the Mareva Injunction, or Freezing Order.
Understanding Mareva Injunctions (Freezing Orders)
A freezing order is a serious step, not granted lightly by the Court. It effectively protects your assets by preventing your ex-partner from removing or disposing of them until a final Property Settlement is reached.
When is a Freezing Order Granted?
To apply for an injunction to freeze bank accounts or other assets, you must provide the Court with strong evidence proving:
An Argüable Case: You have a strong case for a future financial judgment (e.g., a property settlement entitlement).
Evidential Risk: There is a real and substantial risk that your ex-partner will dispose of or remove assets, which would prevent any future court judgment from being satisfied.
Reasonable Scope: The injunction must only cover the value of assets required to satisfy the likely judgment, causing "minimal disturbance" to the other party.
Contempt of Court: If a freezing order is granted, and your ex-partner violates it by removing funds or disposing of assets, they face serious consequences, including fines or imprisonment.
What is an Ex Parte Application?
In urgent cases where notifying your partner would prompt them to immediately dispose of assets, the Court can hear your application Ex Parte (from one party only). If granted, the order is issued without your ex-partner's knowledge until it is served, preventing them from accessing the frozen funds.
Alternatives to Adversarial Injunctions
While necessary in cases of extreme distrust, a freezing order is a highly adversarial move that can cause long-term resentment, especially if children are involved. Falzon Legal always strives for more peaceful and constructive solutions first:
Consent Orders: If you can reach an agreement (often through mediation) regarding the division of cash and assets, the agreement can be formalized into a Consent Order. This is legally enforceable under the Federal Circuit and Family Court of Australia (FCFCOA).
Binding Financial Agreement (BFA): This is a contract that details how assets will be divided upon separation or divorce. It can be made before, during, or after the relationship and removes the need for court intervention.
If you suspect your ex-partner is depleting shared assets, you must seek legal guidance immediately. Whether through a firm injunction or a peaceful agreement, protecting your assets is critical to securing your post-separation future.
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