Asset freezing is a legal process which prevents a defendant, whether innocent or guilty, from dissipating their assets.
Although asset freezing has a persuasive effect on settlement negotiations, the freezing order is generally considered to be the beginning of the end for the defendant as they will be unable to defend themselves with very limited to no available income.
The process is regarded as a high-stakes exercise for several reasons:
- The application is almost always made without notice
- The applicant must provide an undertaking to the court to compensate the defendant for any damage caused by the order
- An improper or imprecise freezing order will cost the party, and its counsel, heavily in terms of credibility with the court
When concerning divorce, a court can freeze bank accounts and other marital assets that prevents a soon to be ex-spouse from accessing any money or forbidding the sale or destruction of other marital assets.
In general, an order freezing bank accounts and other assets will be issued when justice might be thwarted by the improper transfer of assets beyond the jurisdiction of a court.
If you have questions about frozen assets, or need a Motion to Freeze Assets
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