The Mareva Order in Family Law

Mareva Order

By Ezra Sarajinsky

· Read time: 5 minutes

In family law, a Mareva Order is a court order that freezes the assets of one party to a marriage or de facto relationship to prevent them from dissipating or hiding their assets, leaving the other party without a remedy even if they succeed in their claim.

This legal tool can be an effective way to protect your financial interests during the process.

What is the purpose of a Mareva Order in family law?

The purpose of a Mareva Order in the context of family law is to preserve the assets of the parties to the relationship to ensure that a just and equitable property settlement can be made.

Mareva Orders are typically sought in cases where there is a risk that one party may dispose of their assets to avoid paying their fair share of the property settlement.

The order allows one party to secure their financial interests by freezing the other party’s assets, making it more difficult for them to transfer or dispose of them.

Requirements to be satisfied for a Mareva Order in family law

To obtain a Mareva Order, the party seeking the order must demonstrate to the court that:.

  1. They have a strong case for a property settlement that would be prejudiced if a Mareva Order were not made.
  2. There is a real risk that the other party will dissipate or dispose of their assets, or that they have already done so.
  3. The balance of convenience favours granting the order. This means that the benefits of granting the order outweigh any potential harm or inconvenience to the other party.

Requirements under the Family Law Act

Under the Family Law Act, the court has the power to make a Mareva Order to preserve the assets of the parties to a marriage or de facto relationship.

The court can also make ancillary orders, such as ordering the other party to disclose their assets or requiring third parties to provide information about their assets.

What is the difference between a freezing order and a Mareva injunction in family law?

In family law, a freezing order is a broader term that refers to any court order that prohibits a party from disposing of or dealing with their assets.

A Mareva injunction is a specific type of freezing order that targets one party’s assets to prevent them from being dissipated or hidden.

Can a Mareva Order be granted against a third party?

Mareva Orders can only be granted against one party to a marriage or de facto relationship.

However, in some circumstances, a third party who has received assets from the other party with the intention of defeating a property settlement claim can also be restrained from dealing with those assets.

What are the limits of a Mareva Order in family law?

Mareva Orders are a powerful tool in family law, but they have limits.

The order cannot be used to freeze assets that are not owned by the other party, such as assets held in trust or by a third party.

Additionally, the order cannot be used to restrain the other party from using their assets for legal expenses or basic living expenses.

FAQs

What is a Mareva type order?

To recap, a Mareva type order is a court order that freezes the assets of one party to a marriage or de facto relationship to prevent them from wasting or hiding their assets, leaving the other party without a a practicable outcome remedy even if they were victorious with their claim.

Where does the term “Mareva” come from?

The term comes from the name of a case heard in the English High Court in 1975, Mareva Compania Naviera SA v International Bulkcarriers SA.

Why is it also called a Mareva injunction?

The term “injunction” is used because the order is a type of injunction, which is a court order that requires a party to do or not do something.

What is the difference between an Anton Piller order and Mareva Order?

An Anton Piller order is a type of court order that allows a party to search the other party’s premises and seize evidence without prior notice.

The purpose of an Anton Piller order is to prevent the destruction of evidence.

In contrast, a Mareva Order freezes the assets of one party to a marriage or de facto relationship.

Is a Mareva order an Interim or Interlocutory Injunction?

A Mareva order can be either an interim or interlocutory injunction, depending on the circumstances.

An interim injunction is a temporary order that is granted before a final hearing, while an interlocutory injunction is a temporary order that is granted during the course of legal proceedings and remains in effect until the final determination of the case.

In Summary

In conclusion, Mareva Orders can be an effective legal tool to prevent a party from dissipating or hiding their assets during a dispute. However, obtaining such an order is not an easy feat, and stringent requirements are needed to be satisfied before a court will grant the order. It is important to note that Mareva Orders have limitations, and a party seeking this kind of order should carefully consider the consequences of freezing the other party’s assets.

It is always best to obtain specialist legal advice and guidance in any area of family law litigation, and launching or defending against a Mareva Order is no exception. If you are in need of a family lawyer, then contact Movement Legal today for expert assistance.

Book a free 15 minute call

Contact us for an obligation-free, 100% confidential chat.







    Need help with your separation?







      Our separation packages make the process easier and more affordable.

      Learn more