Estate disputes can get intense, especially if someone is trying to hide or get rid of valuable assets. It can be frustrating and burdensome to deal with, but there is a solution that can give the tools to navigate these trying times. It is called a Mareva injunction.
“What the heck is that?” is the first thing you ask yourself after hearing this foreign term. Simply put, it is a legal tool that allows the court to freeze someone’s assets. That could be money, property, or even real estate, giving you the time and peace of mind while you are still fighting it out in court. The idea of a Mareva injunction is to prevent that person from selling off or moving assets to a different account, making it impossible for you to recover anything if you win. It is like putting a pause button on the situation, ensuring that the stuff you are fighting over is still available when you reach the end of the dispute.
The Mareva injunction got its name from a case in England back in the 1970s. The Mareva case was where a company tried to hide its assets from a creditor by moving things around, and the court stepped in to stop that from happening. Since then, it has become a common tool, not just for business disputes but in estate litigation, especially when someone is worried the other side might try to disappear estate assets. Estate litigation lawyers and wills and estate lawyers frequently rely on Mareva injunctions to protect estate property.
But there is a catch. As my supervising attorney once told me, “No one gets anything for free,” meaning to say, it is not just something you can ask for on a whim. The court must be convinced that you meet important criteria before they will give you the go-ahead. First, you must show that you have a solid case. It does not mean you have to be guaranteed to win, but there needs to be a real chance of success. Then, the court needs to know that the person you are going after indeed has assets within Ontario that they could interfere with. And of course, the most important part, you must prove that there is a real risk those assets could be moved, hidden, or otherwise taken away before the case is decided. Finally, the court will want to know that without freezing those assets, you would suffer irreparable harm. Meaning, once the assets are gone, there is no way to fix it. If the judge is convinced on all these points, you might just get the injunction you need.
Let us take a look at the Ontario case called Wilson v. Mayers. Things got messy to say the least. The surviving spouse, Denise Mayers, applied for a Certificate of Appointment of Estate Trustee Without a Will, basically trying to take control of the estate. The problem? She knew a Will existed, but she pretended like there was not one. Once she was in charge, she started moving the estate’s real estate into her name, which raised red flags for the family. They feared she was trying to sell or hide the assets before the courts could do anything.
The court took a hard look at what was happening and found a few things that tipped the scales. First, Denise had made some questionable declarations when applying for the estate trustee role, which made the case against her strong. Second, her actions, immediately transferring real estate into her own name, showed a clear risk that the estate’s assets could be gone before the family could do anything about it. With significant property involved, the court did not waste any time. They issued a Mareva injunction to freeze the assets, preventing Denise from doing anything more with them until the case was sorted out.
This case illustrates just how paramount a Mareva injunction can be in protecting the assets of an estate. Take note if you find yourself amid an estate battle. Remember these key things. Firstly, do not wait to act if you think assets are at risk. The sooner you can raise the issue with the court, the better. Second, you need strong supporting evidence. The court is not going to issue an injunction based on hunches or gut feelings. You have got to show some concrete evidence, whether it is documents, proof of suspicious transactions, or past behavior that shows a pattern that someone is trying to hide the goods. Finally, honesty is a big deal. If the court finds that you have been dishonest in any way, it could seriously hurt your chances of getting the injunction. It is the best policy to always be transparent and play by the rules.
While a Mareva injunction is not a guaranteed win, in various situations it can be an absolute lifesaver when estate assets are at risk. In the Wilson v. Mayers case, the injunction gave the family the protection they needed, ensuring that the assets stayed in place until the legal issues could be worked out.
So, if you are involved in a heated estate dispute and you are worried assets might go missing, do not wait to chat with a lawyer. Speak with experienced wills and probate lawyers or estate litigation attorneys about whether a Mareva injunction is the right move for you. It could be the difference between seeing the assets preserved or watching them slip through your fingers.
If you need help, consult with lawyers in Brampton for wills, wills lawyers Brampton, or experienced powers of attorney lawyers to ensure you are fully protected in your estate litigation matters.
