Concealment of Funds

Worried that the other party is concealing funds? There are many orders you can take out against him/her!

The court in Tel-Aviv has recently demanded a husband to waive banking confidentiality and to provide the court with his statements from banks in Switzerland and the U.S., at his wife’s request. The court’s decision was given after it was proved that the husband is a wealthy man and that the standard of living which he and his wife had was much higher than his proposal to pay alimony.

This divorce case used an economic order, one of many orders which are in the court’s authority to issue, aimed to help the person requesting to prevent possible damage caused to him/her by a unilateral action of the spouse, for example, exiting the country permanently, smuggling assets etc.

In legal disputes within family law, economic orders have a huge impact on the final outcome of the case. There are known orders – a temporary confiscation order, stay of exit order, various injunctions etc. – but there are orders less familiar to the public that their use could be very effective.

The court’s authority to order such orders in almost unlimited. For example, one can get an order for disclosure of financial information designated to the banks, tax authorities and to demand copies of balance-sheets and accounting documents, details regarding shareholding and details of transactions.

The court can also appoint an expert authorized to investigate to prove the value of the property of one of the parties. Appointing an investigator to check all the husband’s assets could help the wife, if her husband is a man of property. Such an order may be given even if the couple is still married and before reaching the time of the actual balance of assets. The investigator would check in to her husband’s assets and will submit a report to the court.

In cases where a husband has, for example, companies and businesses, an order can be given to appoint a temporary administrator to the company who will replace the husband at least until the end of the legal proceedings, in order to prevent the husband from depleting the company’s assets, reducing its value or increasing its debts, in order to detract from the rights of his wife in the company, at the time of the dissolution of marriage.

Besides the “Regular” package of orders there are two very significant orders which are less known:

An “Anton Piller” Order” and “Mareva Injunction”. An “Anton Piller” allows seizure of assets/documents and removal of them while the plaintiff or his representatives enter the defendant’s premises (residential, office, etc.), the idea behind the order is to prevent the other party from destroying evidence. However, the courts are in no hurry to issue an “Anton Piller” due to the sensitivity and adherence of the basic rights of the individual. “Mareva injunction” can also provide great help in the case – this injunction is directed personally to the defendant and prevents him/her from selling or giving his/her assets to others. The order can also be applied to assets located abroad.

The temporary injunctions enable the prevention of the party served with it to flee the country or destroy documents and they are ordered by the Family Court or the Rabbinical Court. These orders are temporary but came become permanent, according to circumstances. That being said, the courts will respond harshly if the information given, in order to obtain the order, is false and the purpose of the order is to take revenge/harm the other party so caution should be used when requesting an order which might considerably harm the rights of the other party.

This article is not intended as legal advice and should not be relied on it as such.