Can I Stop My Ex Selling Assets Before Our Property Settlement?

Your ex tells you the house is going on the market.

Or you discover they are selling shares. Transferring a business. Moving money overseas. Selling an investment property.

And your property settlement has not even been finalised.

The immediate question is usually:

Can I stop them?

Potentially, yes.

Can the Family Court stop someone selling property?

The Federal Circuit and Family Court of Australia has powers to make injunctions in financial matters.

In appropriate circumstances, orders can be sought restraining a party from selling, transferring, disposing of or otherwise dealing with property.

But an injunction is not automatic merely because you do not want an asset sold.

The circumstances and evidence matter.

Not always.

Sometimes the real issue is not whether an asset is sold.

It is what happens to the money afterwards.

For example, there may be no sensible reason to prevent the sale of a property if both parties agree it should be sold.

The appropriate protection may instead be an agreement or Court order requiring the net sale proceeds to be held in a solicitor’s trust account or otherwise preserved until the parties agree on their distribution or the Court makes further orders.

That can preserve the value without unnecessarily preventing a commercially sensible transaction.

What if my ex is transferring assets to family members?

Transfers involving relatives, companies, trusts or related entities may require investigation.

The fact that an asset has been moved does not automatically determine how it will ultimately be treated in family law proceedings.

But these cases can become complicated quickly.

If you become aware of a proposed transfer that appears designed to remove property from reach, obtain advice promptly.

What if the asset is a business?

Restraining dealings involving a trading business requires particular care.

An order that effectively prevents a business from operating could have serious consequences for both parties.

The objective may therefore be to preserve value without unnecessarily destroying the asset everyone is arguing about.

The appropriate orders will depend heavily on the business and the alleged risk.

What evidence do I need?

Urgent applications should be supported by evidence.

Useful evidence might include:

• correspondence threatening a sale or transfer
• contracts
• property listings
• bank records
• company searches
• messages between the parties
• evidence of previous transfers or attempts to dissipate assets

The stronger and more immediate the evidence of risk, the clearer the basis for seeking urgent intervention may be.

What if the sale has already happened?

The focus may then move to the proceeds.

Where possible, steps may be considered to preserve the money before it is spent or transferred elsewhere.

Even where funds have already moved, it may still be necessary to investigate where they went and how the transaction should be treated in the ultimate property settlement.

Speed matters

If your former partner is genuinely about to dispose of a substantial asset, getting legal advice next month may be too late to achieve the simplest solution.

You may not ultimately need an urgent Court application.

Sometimes a properly drafted undertaking or negotiated arrangement is enough.

But you need to know what is happening before deciding how to respond.

Melmark Law assists clients with urgent family law property disputes, asset preservation, business interests and complex financial matters.

If you are concerned an asset may disappear before your property settlement is resolved, obtain advice as early as possible.

This article provides general information only and does not constitute legal advice. You should obtain advice about your individual circumstances.