Protecting Family Assets: Preservation Orders and Mareva Injunctions

What happens if you believe family assets may disappear before the property dispute is resolved? When there is a genuine concern that assets may be dissipated, hidden, transferred, or moved beyond reach, Alberta courts have remedies designed to preserve property while litigation is underway.

Preservation and restraining orders

Alberta's Family Property Act gives the court authority to make orders restraining a spouse or partner from disposing of, transferring, or encumbering property that may be subject to division, and to make other orders to preserve property until the claim is decided.

Mareva injunctions

A Mareva injunction is an extraordinary order that freezes a party's assets so they cannot be removed or dissipated to defeat a future judgment. Because it is so intrusive, the applicant generally must show:

• A strong case on the underlying claim;
• Assets within the jurisdiction (or, in some cases, elsewhere);
• A real risk that the assets will be removed or dissipated before judgment; and
• That the balance of convenience favours granting the order.

The applicant must also make full and frank disclosure of relevant facts, and is often required to give an undertaking to pay damages if the order later proves unjustified.

Not ordinary litigation tools

These are significant court orders. Suspicion alone is rarely enough — evidence of a real risk matters. Acting quickly and documenting concerns is important.

If you are worried that family assets may disappear, speak with our team about whether a preservation remedy may be appropriate.