Freezing a Defendant’s Assets
Asset preservation is a powerful tool to protect your interests when you suspect wrongdoing, such as fraud or misappropriation. When a potential legal claim arises, freezing or safeguarding assets is crucial to ensure they remain available for recovery. Without prompt action, there is a risk that the defendant may transfer, hide, or deplete assets, making it difficult to enforce any future judgment in your favour.
A freezing order can prevent assets from being removed, sold, or otherwise disposed of while legal proceedings are underway. This remedy is particularly important in cases of civil fraud or deceptive conduct, where there is often a real risk that assets will be dissipated, leaving impacted parties with limited recourse.

Our Expertise
At Duxton Hill, we specialise in protecting our clients’ financial interests through swift and strategic legal action. With deep expertise in asset preservation and fraud-related cases, our team has successfully helped individuals and businesses secure their assets and mitigate financial losses.
We understand that when foul play is suspected, time is of the essence. Our lawyers and investigators understand the importance and are experienced in obtaining remedies on an urgent basis to prevent the dissipation or concealment of assets. Whether the fraud involves corporate misappropriation, embezzlement, or other dishonest activities, we provide clear guidance through every step of the process.
Our approach is thorough and proactive. From building a strong, evidence-based case to navigating complex legal procedures, we do our work with a view to preserving chances of recovery to the extent possible. We also provide tailored advice on how to secure your position, both in Australia and internationally.

FAQ
What is a Freezing Order?
A freezing order is a type of court injunction that restrains a person or entity from removing, hiding, or otherwise dealing with their own assets or those of another party over which they have custody or control. This includes cash in bank accounts, motor vehicles, real property, crypto-currency, and equipment.
A freezing order operates to preserve the status quo and does not give the party who seeks the order an immediate right to the assets. It is typically used when there is concern that a defendant may dissipate their assets to avoid paying a future judgment. The order can apply to assets both domestically and internationally and is often granted without notice to the defendant, ensuring the assets remain protected during legal proceedings.
When is a Freezing Order Necessary?
It depends. Generally, a freezing order is necessary when there is a real risk that the respondent may attempt to hide, move, or dispose of assets, making it difficult to enforce a future judgment. It is particularly relevant in cases involving fraud, where it is reasonable to infer that a person who has committed dishonest behaviour such as misappropriation or embezzlement is more likely to deal with their assets contrary to the administration of justice. The order ensures those assets remain available for recovery if the case is successful.
Typically, a freezing order is obtained at the very start of a case and before the defendant is aware of it. However, a freezing order can sometimes be obtained after the case has started, particularly if the defendant begins moving or selling assets.
What is Required to Obtain a Freezing Order?
Due to the severe impact on the respondent if granted, the court exercises extreme caution when granting freezing orders. Therefore, the applicant must be able to present compelling evidence to the court, including:
- A good arguable case against the respondent. This does not mean the entire cause of action must be fully developed, but evidence will be required and closely examined by the court in any application;
- proof that there is a real risk the defendant might dissipate or conceal assets;
- details regarding the nature and value of any known assets, whether located in Australia or internationally;
- details of any third parties that might be affected by the existence of such order; and
- identification of any potential defence.
What Happens When a Freezing Order is Granted?
A freezing order will prevent the respondent from dealing with their assets (such as funds in bank accounts, property, or other valuables) up to a certain amount. While the order may allow for reasonable living expenses and the fulfilment of genuine pre-existing contractual obligations, it generally freezes the assets until the end of the court case.
A respondent is also typically ordered to submit an asset disclosure affidavit, which is a document that sets out all assets held by that person, solely or jointly. This allows the applicant to notify relevant organizations to ensure the freezing order is enforced. This step is especially important when there may be unknown assets, such as a share portfolio or a betting account.
If the order is breached, the defendant may face severe penalties, including contempt of court.
What About Orders Restraining Third Parties?
In certain situations, a freezing order can also be issued against third parties—individuals or entities that are not the primary defendant but who may hold, control, or have influence over the assets in which the defendant may have an interest.
Freezing orders can compel third parties to disclose information about the defendant’s assets and prevent them from transferring or dissipating those assets.
What Activities Are Still Permitted After the Grant of Freezing Orders?
After a freezing order is granted, certain financial activities may still be permitted to ensure that the respondent can meet their basic living expenses and fulfil legal obligations. Generally, the following activities are allowed:
- Living expenses: The defendant may be permitted to access a specified amount of funds for reasonable living expenses, such as food, housing, and utilities;
- Pre-existing contracts: The defendant can continue to honour contractual obligations entered into in good faith before the freezing order was granted (e.g. payment of school fees); and
- Legal fees: the defendant may also be allowed to use funds up to an amount for reasonable legal fees associated with the proceedings.
