Luke’s comments have been reproduced below with kind permission.
Litigants are well advised to be cautious when considering freezing orders against businesses, and applications are only made where the evidence absolutely demands it, argues Luke Scarratt, a family lawyer at Payne Hicks Beach, as it can be a risky move for the person making the application.
‘Typically the spouse that applied for the freezing order would be liable for any damages incurred by their spouse or the business,’ he says. ‘That is one of the factors that will play into a discussion about whether to apply for a freezing order and over what assets.’
To avoid an asset freeze, transparency is key:
Being explicit with the courts about every financial decision made during proceedings can help avoid an asset freeze, adds Scarratt.
‘Getting early advice is crucial, to avoid being overtaken by events,’ he says. ‘If I’m acting for a client who needs to move value outside the jurisdiction or sell family assets, then it’s important to provide a full explanation in advance of the rationale for the transaction.’
Scarratt adds: ‘The other side will be jumpy about losing value and so providing accurate and consistent explanations can help avoid an over-hasty application.’
Click here to read the full article: Is freezing assets in a divorce worth the heat?
For further information, please contact Luke Scarratt, in the Payne Hicks Beach Family Department or, alternatively, telephone on 020 7465 4300.
