Asset Freezing Orders, Explained

Quick answer: An asset freezing order prevents a person from disposing of, dealing with, or moving specified assets, typically obtained by a claimant or prosecuting authority who fears assets will otherwise be dissipated. It is not a finding of guilt or liability — it is a preservation measure.

What a Freezing Order Actually Does

A freezing order restrains a person from disposing of assets up to a specified value, or in relation to specific property. It does not transfer ownership or determine any underlying dispute — its sole purpose is to preserve assets so there is something left to recover from if the claim succeeds.

How They're Obtained

Courts typically grant freezing orders where the applicant shows a good arguable case, a real risk assets will be dissipated or moved out of the jurisdiction, and that it is just and convenient to grant the order. Because urgency is often central, these are frequently obtained without the other party present — a without notice application — with the affected person only learning of it once served.

What You Can Do If One Is Made Against You

• Living expenses and legal costs. Freezing orders almost always include an exception for reasonable living expenses and legal fees.
• Challenging the order itself. Can be challenged on return to court, including for failure to make full and frank disclosure when first applying.
• Varying the scope. Narrowing an overly broad order to specific assets or a lower value is often more realistic than removing it entirely.
• Providing security instead. Alternative security can sometimes be a basis to have the freeze lifted.

This article is provided for general informational purposes only and does not constitute legal advice. Outcomes depend on the specific facts of a case and the jurisdictions involved. Readers facing an actual or anticipated matter should seek advice from qualified counsel before making decisions.