Freezing Orders in the UK: Legal Advice and Defence Guidance

What Is a Freezing Order?

A freezing order (sometimes referred to as a Mareva injunction) is a court injunction that stops an individual or company from moving, transferring, or disposing of assets. 

The purpose of the order is to ensure that assets remain available to satisfy a potential court judgment. 

For example, if a claimant believes a defendant may attempt to hide or dissipate assets before a case is resolved, the court may impose a freezing order to preserve those assets. 

These orders are typically issued by the High Court under its equitable powers. 

They may be: 

• Domestic freezing orders – covering assets within England and Wales 
• Worldwide freezing orders – covering assets held internationally 

Because of their significant impact, courts impose strict legal requirements before granting such orders. 

When Can a Court Grant a Freezing Order?

A court will only grant a freezing order where specific legal criteria are satisfied. 

Generally, the claimant must demonstrate: 

• A good arguable case in the underlying claim 
• A real risk that assets may be dissipated 
• That the order is just and convenient 

Freezing orders are commonly sought in cases involving: 

• Fraud 
• Breach of fiduciary duty 
• Asset concealment 
• Commercial disputes 
• Financial misconduct investigations 

Civil Freezing Injunctions

In civil proceedings, a claimant may apply to the High Court for a freezing injunction if they believe the defendant may move assets beyond the reach of the court. 

Freezing Orders in Criminal Investigations

Freezing orders may also arise in the context of financial crime investigations, particularly where authorities suspect criminal conduct involving money or property. 

For example, orders may be connected with investigations under legislation such as the Proceeds of Crime Act 2002, which provides powers to restrain assets linked to suspected criminal activity

Such orders are designed to prevent assets being moved or hidden before confiscation proceedings. 

What Assets Can Be Frozen?

A freezing order can apply to a wide range of assets. 

Common examples include: 

• Bank accounts 
• Property or real estate 
• Investment portfolios 
• Shares in companies 
• Valuable personal property 
• Cryptocurrency holdings 

In many cases, financial institutions are notified of the order and must immediately restrict transactions involving the affected accounts. 

Some orders apply only to assets above a specific financial threshold. 

Others may freeze assets up to a defined monetary value. 

What Happens After a Freezing Order Is Granted?

Once a freezing order is issued, it normally takes immediate effect. 

The person subject to the order must comply with strict legal obligations. 

Disclosure Requirements

Most freezing orders require the respondent to provide a detailed disclosure of assets. 

This may include: 

• Bank accounts 
• Property holdings 
• Investments 
• Income sources 
• Valuable personal assets 

Providing inaccurate or incomplete information can lead to serious consequences. 

Restrictions on Spending

Although assets are frozen, most orders allow limited spending for reasonable living expenses and legal costs. 

However, strict conditions apply, and the respondent must comply precisely with the terms of the order. 

Any breach of the order could amount to contempt of court, which may result in fines or imprisonment.

Can a Freezing Order Be Challenged or Varied?

Yes. Freezing orders are not necessarily permanent. 

A respondent may apply to the court to: 

• Ddischarge the order entirely 
• Vary its terms 
• Clarify spending limits 
• Challenge the evidence supporting the order 

For example, the court may reconsider the order if: 

• the claimant failed to disclose important facts 
• the legal test for the order was not properly satisfied 
• the restrictions imposed are disproportionate 

Legal applications relating to freezing orders are often complex and must be handled carefully. 

Why Legal Advice Is Critical If You Face a Freezing Order

Freezing orders are among the most serious interim court orders that can be made in financial and commercial disputes. 

The consequences may include: 

• Restricted access to bank accounts 
• Significant reputational damage 
• Complex disclosure obligations 
• Ongoing court proceedings 

Obtaining legal advice as early as possible is essential to: 

• Understand the scope of the order 
• Ensure compliance with the court’s requirements 
• Assess whether the order can be challenged or varied 
• Protect your financial and legal position 

Specialist criminal defence and financial investigation solicitors can provide guidance on the legal process and represent you in court where necessary. 

Speak to a Solicitor About a Freezing Order

If you are subject to a freezing order or anticipate one being sought against you, it is essential to obtain legal advice promptly. 

Freezing orders involve complex legal procedures and strict compliance requirements. Experienced criminal defence solicitors can advise you on the legal implications of the order and represent you in court where necessary. 

To discuss your situation and obtain legal advice, contact our legal team today.