A Mareva injunction is a court order that freezes a defendant’s assets before a case is even decided, based on a claimant’s argument that the defendant might otherwise move or hide assets to avoid a judgment. It originated in English law and is now used across most Commonwealth jurisdictions. For anyone with meaningful assets and any exposure to litigation, understanding how these orders work matters more than most people realize.
Why Timing Is Everything
A Mareva injunction is designed to work by surprise. Courts grant these orders without notifying the defendant first, precisely because advance warning would defeat the purpose. That means the only real protection is structural: having your assets organized in a way that limits exposure before any dispute arises, not scrambling to restructure once a claim has been filed.
Structures That Provide Genuine Protection
Asset protection trusts, particularly those established in jurisdictions like the Cook Islands or Nevis that do not automatically recognize foreign court orders, create real friction for anyone trying to freeze or seize assets across borders. LLCs with charging order protection, where a creditor can only claim distributions rather than force a sale of the underlying asset, serve a similar purpose domestically. The common thread across every effective structure is that it existed before the legal threat did. Courts and opposing counsel are generally skeptical of transfers made after a dispute is already brewing, and moving assets at that point can look like fraudulent conveyance rather than legitimate planning.
The Line Between Planning and Hiding
There is an important distinction between legitimate asset protection and hiding assets from a court. Properly structured trusts and entities are disclosed, documented, and set up well in advance for legitimate reasons: business risk, family wealth planning, or simple prudence. Structures built specifically to defeat a known or anticipated claim, or set up after a dispute has already started, do not hold up and can create bigger legal problems than the ones they were meant to solve. The protection comes from being early and being transparent about legitimate purpose, not from secrecy.
Educational only, not tax, legal, or investment advice. Check primary sources and speak with a qualified professional before making financial decisions.
Part of our guide: Wyoming Crypto LLC.
