A Mareva Injunction is a powerful court order used in Ontario family law to immediately freeze a spouse’s bank accounts, real estate, and investments globally. It is granted when there is credible evidence that a spouse is actively transferring assets offshore to avoid paying equalization or spousal support.
The end of a marriage often brings out the worst in people, particularly when significant wealth is involved. In affluent areas like Oakville, Vaughan, and Toronto, a spiteful spouse might attempt to sabotage the divorce settlement by draining joint accounts, selling off real estate, or wiring millions of dollars to foreign banks. If your spouse succeeds in moving the money to a jurisdiction that does not cooperate with Canadian courts, your legal right to half the family wealth could vanish entirely.
To prevent this financial betrayal, Ontario family lawyers utilize a drastic legal tool known as a Mareva Injunction. ❗ Often called a “freezing order,” this injunction legally paralyzes your spouse’s ability to touch their own money. It orders banks, investment brokerages, and land registry offices to lock down the assets immediately. Because freezing someone’s entire net worth is a severe restriction on their freedom, the Superior Court of Justice demands overwhelming proof of fraudulent intent. This guide explains how to secure this financial freeze.
Step-by-Step Process for a Mareva Injunction in Ontario
You cannot freeze a spouse’s bank account just because you are angry or suspicious. The process is highly technical, heavily scrutinized by judges, and requires lightning-fast legal execution.
Step 1: Proving a Strong Legal Claim
First, your lawyer must demonstrate to the court that you are owed a specific, substantial amount of money. You must have a strong, valid claim for an equalization payment, massive arrears in spousal support, or child support. The judge needs to see that you are highly likely to win your divorce case on the merits of the financial math.
Step 2: Proving the Risk of Dissipation
This is the hardest part. You must provide concrete evidence that your spouse is actively dissipating (hiding or moving) assets to defeat your claim. 📍 Simply pointing out that your spouse is wealthy and owns a passport is not enough. You need proof: emails discussing offshore trusts in the Cayman Islands, sudden massive wire transfers out of a joint checking account, or real estate listings showing they are secretly selling the family cottage.
Step 3: The Ex Parte Application
Like an Anton Piller order, a Mareva Injunction must be filed “ex parte” (without notifying the other side). If you warn a deceitful spouse that you are trying to freeze their accounts, they will move the money with a few clicks on their smartphone before the judge signs the order. Your lawyer will present a sworn affidavit detailing the financial emergency directly to a judge.
Step 4: Serving Financial Institutions Globally
Once the judge signs the Mareva Injunction, the paper itself must be served. Your legal team will immediately serve the order to every major Canadian bank, wealth management firm, and real estate lawyer involved with your spouse. 💰 The moment the bank receives the order, they are legally bound to freeze the accounts. Many orders contain worldwide reach, binding international branches of banks operating in Canada.
Step 5: The Return Motion
Because the order was granted in secret, the court must balance the scales. Usually within 10 to 14 days, a “return motion” is held. Your spouse and their lawyers will appear in court to argue why the freeze should be lifted. If your spouse can prove the wire transfers were just normal business transactions, the judge may dissolve the injunction.
How Much Does it Cost in Ontario?
Freezing a spouse’s assets is an aggressive, premium legal strategy that comes with massive upfront costs and heavy potential liabilities.
- Emergency Legal Fees: Preparing a flawless, highly detailed Mareva application in a matter of days typically costs between $15,000 and $40,000 CAD.
- Forensic Accounting: You may need to hire an expert to trace the wire transfers and prove the fraudulent intent, which can cost an additional $5,000 to $15,000 CAD.
- Undertaking as to Damages: You must pledge to compensate your spouse if the injunction turns out to be unjustified. If freezing their accounts causes their business to go bankrupt or default on loans, you could be personally sued for hundreds of thousands of dollars in damages.
How Long Does the Process Take?
Speed is the entire point of a Mareva Injunction. If your lawyer uncovers evidence of an imminent wire transfer, they can draft the materials and appear before a judge within 24 to 48 hours. The freeze is instantaneous the exact second the bank is served with the order. The injunction will usually remain in place temporarily until the mandatory review hearing (held within 10 to 14 days). If you win the review, the freeze usually lasts for the duration of the entire divorce proceeding, which can take 1 to 2 years to resolve.
Standard Restraining Order vs Mareva Injunction
| Feature | Section 12 FLA Restraining Order | Mareva Injunction |
|---|---|---|
| Target Assets | Restricts the depletion of general family property in Ontario. | Freezes specific bank accounts and assets worldwide. |
| Level of Evidence | Moderate. Prevents normal assets from being wasted. | Extreme. Requires proof of active, malicious fraud and evasion. |
| Effect on Third Parties | Binds the spouse personally. | Legally binds banks, brokers, and foreign institutions immediately. |
Frequently Asked Questions (FAQ)
Does a Mareva Injunction freeze their ability to buy groceries?
No. The courts do not want to starve anyone. A well-drafted Mareva Injunction contains specific carve-outs allowing the spouse to access a set amount of money each month (e.g., $5,000 CAD) to pay for ordinary living expenses and their own legal fees.
Can an Ontario court actually freeze a bank account in Switzerland?
An Ontario “worldwide” Mareva injunction binds the spouse personally, ordering them not to touch foreign funds. If the foreign bank has a branch in Canada, it is easily enforceable. For purely foreign banks, your lawyer must take the Ontario order and seek a reciprocal enforcement order in the local Swiss court.
What happens if the bank lets my spouse withdraw the money anyway?
If a bank receives a formal Mareva Injunction and negligently allows your spouse to transfer the funds afterward, the bank is in contempt of court and can be held directly financially liable to repay you the lost funds.
What if my spouse owns a business? Will it freeze payroll?
Courts are very careful not to destroy legitimate businesses. The order will usually include strict exceptions allowing the spouse’s business accounts to continue paying legitimate third-party suppliers and employee wages in the ordinary course of business.
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