Freezing Assets
There are many different ways to freeze
assets as part of a divorce case. However,
the best way to freeze assets is to obtain
a court order at the very outset of the
case. In most places, assets can be frozen
by obtaining a temporary restraining
order or a preliminary injunction. This
is often accomplished automatically by
the filing of a complaint or a petition
for divorce. More often, however, it
is necessary to file an emergency petition
for a restraining order or an injunction,
or an Order to Show Cause seeking temporary
restraints. These legal devices are aimed
at maintaining the status quo—that
is, preventing each spouse from removing
property, bank funds, or other assets
while the case is pending.
It is important to serve restraining
orders and injunctions on all parties,
persons, banks, brokers, agents, and
other business representatives who may
control the disposition of assets. A
court order freezing bank accounts is
no good if the bank never learns about
it.
In order to obtain an order freezing
assets, a court may require some evidence
that there is a risk that the assets
would be spent, diverted, re-named, transferred,
converted, or dissipated, unless a restraining
order is entered. The court may agree
to freeze assets only for a limited period
of time, forcing you to renew your request
or to settle and distribute the assets
prior to the expiration date. Sometimes,
when assets are frozen, it becomes necessary
to petition the court to “unfreeze” some
portion of the assets in order to use
them while the divorce is pending. |