Financial remedy proceedings often involve a wide range of assets — property, investments, business interests, savings, or valuable personal items. When a relationship breaks down, the risk of one party moving or dissipating assets can increase significantly. Section 37 of the Matrimonial Causes Act 1973 provides a critical mechanism to protect your financial position, ensuring that assets remain available for fair division and preventing the misuse or dissipation of wealth.
Why Section 37 matters
In many cases, assets may be held in various forms: real estate, savings, investment portfolios, business shareholdings, or high‑value possessions such as art or vehicles. These can often be moved or restructured quickly. Section 37 allows the court to intervene where it appears that one party is:
- Transferring assets to third parties
- Moving money out of the jurisdiction
- Selling or disposing of property at undervalue
- Restructuring businesses or shifting ownership
- Remortgaging or leveraging assets before settlement discussions
What Section 37 can do
1. Freeze assets immediately
A Section 37 freezing injunction can be obtained urgently — sometimes without notice — to prevent the dissipation or transfer of:
- Bank accounts
- Property
- Investments and shares
- Business assets
- Valuable personal possessions
2. Reverse asset transfers already made
If assets have already been disposed of, the court may set aside those transactions if they were made with the intention of defeating financial claims.
When you can apply
A Section 37 application is available at almost any stage, provided there is an existing or imminent financial claim.
What the court needs to see
The court considers:
- Evidence assets are being moved or are at risk
- Intention to reduce the other party’s financial entitlement
- A genuine financial claim
Importance of acting quickly
Assets can be moved quickly, so applications are often made without notice.
Additional protective measures
Before seeking a court order, immediate steps may include:
- Registering a notice at the Land Registry
- Alerting banks to suspicious activity
- Requesting information about asset movements
Conclusion
A Section 37 application helps safeguard assets during divorce so they remain intact while a fair financial settlement is reached.
How can Nelsons help?
Should family mediation be a process that you feel could assist you to resolve outstanding issues between you and your former spouse or partner, or should you wish to find out more about the process, then please contact Gayle Rowley (Legal Director, Solicitor & Mediator) who will be happy to discuss your circumstances in more detail and give you more information about the services that our family law solicitors can provide along with details of our hourly rates and fixed fee services.
Please contact Gayle or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
Contact UsIf this article relates to a specific case/cases, please note that the facts of this case/cases are correct at the time of writing.