Asset tracing solicitors help individuals, businesses and creditors identify assets that may have been concealed, transferred or dissipated and assess the legal steps available to preserve and recover them. Asset recovery may involve financial investigation, disclosure, interim court remedies, enforcement proceedings and coordination across several jurisdictions.
The appropriate strategy depends on where the assets are located, how they are held, the legal basis of the claim and whether there is a risk that the property may be moved before proceedings are concluded.
What Is Asset Tracing and Recovery?
Asset tracing is the process of identifying and following assets, funds or ownership interests connected with a dispute, fraud or unsatisfied judgment. Asset recovery is the subsequent legal process used to preserve, claim or enforce rights against those assets.
The two stages are related but not identical. Identifying an account, company, property or other asset does not automatically give a claimant a right to recover it. The legal basis for ownership, liability and enforcement must also be established.
Asset tracing and recovery may be relevant where:
- funds are suspected to have been diverted through fraud;
- assets have been transferred between companies or jurisdictions;
- a judgment debtor appears to be concealing property;
- ownership is obscured through corporate structures;
- there is concern that assets may be dissipated before a claim is resolved;
- enforcement is required against assets located outside the claimant’s home jurisdiction.
How Do Asset Tracing Solicitors Investigate Assets?
The starting point is usually a structured review of the available evidence.
This may include:
- bank and financial records;
- corporate and ownership information;
- contracts and transactional documents;
- court or arbitration decisions;
- communications and accounting records;
- information obtained through lawful disclosure procedures.
Where corporate structures are involved, lawyers may analyse the relationships between companies, shareholders, directors and other persons connected with the relevant assets. The purpose is to establish how property is owned or controlled and whether particular transactions may be relevant to the legal claim.
The investigation must remain within the applicable rules on evidence, confidentiality, privacy and disclosure. Asset tracing does not give a claimant a general right to obtain private banking or corporate information.
Can the Court Order Disclosure From Third Parties?
In appropriate proceedings, information held by third parties can sometimes be obtained through court-ordered disclosure.
For proceedings in England and Wales, CPR Part 31 includes mechanisms for disclosure before proceedings and disclosure against non-parties. A non-party disclosure order is subject to statutory conditions, including whether the documents are likely to support or adversely affect a party’s case and whether disclosure is necessary to dispose fairly of the claim or save costs.
The availability of disclosure therefore depends on the circumstances of the case and the jurisdiction in which the information is held.
Can Assets Be Frozen During Proceedings?
A freezing injunction may be available where there is a legal basis for interim relief and the relevant requirements are satisfied.
In England and Wales, CPR Part 25 expressly recognises freezing injunctions restraining a party from removing assets from the jurisdiction or dealing with assets located either within or outside the jurisdiction. The court can also order information to be provided about relevant property or assets.
A freezing injunction is not an automatic part of an asset recovery claim. The applicant must provide evidence supporting the application, and the court decides whether the remedy should be granted. Applications for freezing injunctions under CPR Part 25 must be supported by evidence on affidavit or affirmation.
Where an injunction is granted, its precise scope depends on the terms of the court order.
What Are Search and Imaging Orders?
In exceptional circumstances, the court may also grant a search order or imaging order to preserve evidence.
Under CPR Part 25, a search order can require a party to allow access to premises for the purpose of preserving evidence. Imaging orders can permit an independent IT expert to access electronic storage devices or online accounts for copying relevant data. These remedies are subject to specific procedural safeguards.
A search order should not be confused with a criminal search warrant. It is a civil court remedy, and the CPR requires applications to be supported by evidence. A search order normally also involves an independent Supervising Solicitor.
How Does International Asset Recovery Work?
Cross-border asset recovery can require action in more than one jurisdiction.
Assets may be held through foreign companies, overseas bank accounts or property located outside the country where the underlying claim was brought. In those circumstances, the strategy may involve local proceedings, recognition or enforcement of judgments, disclosure applications or interim measures in the jurisdiction where the relevant assets are situated.
A court order obtained in one country does not necessarily operate automatically in another. The applicable recognition and enforcement rules must therefore be considered separately for each jurisdiction.
Our asset tracing and recovery solicitors coordinate the legal work required to identify relevant assets and determine which proceedings may be available in the countries involved.
How Long Does Asset Tracing and Recovery Take?
There is no fixed timeframe for an asset tracing and recovery matter.
The duration depends on factors such as:
- the number of jurisdictions involved;
- the complexity of the ownership structure;
- the availability of financial and corporate records;
- whether disclosure or interim court orders are required;
- whether the defendant contests the proceedings;
- the location of the assets;
- any subsequent enforcement proceedings.
A straightforward matter involving identifiable assets in one jurisdiction may progress much faster than a dispute involving several companies, multiple countries and contested ownership.
For that reason, a reliable timeframe can normally be assessed only after the available documents and legal position have been reviewed.
Our Approach to Asset Tracing and Recovery
Our work can include:
Asset tracing. Reviewing financial, corporate and transactional information to identify property potentially relevant to the claim.
Disclosure. Assessing whether court-ordered disclosure or other lawful information-gathering procedures may be available.
Freezing injunctions. Advising on applications intended to prevent assets from being dissipated while proceedings are pending where the legal requirements are satisfied.
Search and imaging orders. Assessing whether urgent measures may be available to preserve documentary or electronic evidence.
Cross-border recovery. Coordinating proceedings where assets, companies or counterparties are located in multiple jurisdictions.
Judgment enforcement. Considering the steps required to enforce an existing judgment against identified assets.
Contact Our Asset Tracing and Recovery Solicitors
Asset tracing is most effective when the legal strategy is based on the actual location, ownership and status of the relevant property.
Our asset tracing and recovery solicitors can review the available documents, identify the jurisdictions involved and assess which investigative, interim or enforcement measures may be legally available.
If assets may be moved or dissipated, the need for urgent court relief should be assessed at an early stage. The availability of a freezing injunction, disclosure order, search order or other remedy will depend on the facts of the case and the applicable jurisdiction.
Request a confidential case assessment to discuss your asset tracing or recovery matter.
Who will handle your case
Applications to the Commission for the Control of INTERPOL’s Files are drafted and signed by a senior partner, and you deal with that partner throughout — the argument you file is the one you discussed.
Fees are set after a free assessment of the file, because the work depends on whether a notice exists at all, which country supplied the data and how far the case behind it has gone. See the full team on our team page, or speak to a partner directly: +357 96 447475.
FAQ
What is asset tracing and recovery?
Asset tracing is the process of identifying assets, funds or ownership interests that may have been concealed, transferred or dissipated. Asset recovery is the legal process used to preserve, claim or enforce rights against those assets. Locating an asset does not by itself establish a right to recover it; the legal basis of the claim must also be established.
Can assets be frozen before a judgment?
In some jurisdictions, courts can grant interim measures before final judgment where the applicable legal requirements are satisfied. In England and Wales, for example, CPR Part 25 allows freezing injunctions and permits interim remedies to be granted before proceedings begin in urgent cases or where the court considers it desirable in the interests of justice.
How long does asset tracing and recovery take?
There is no standard timeframe. The duration depends on factors such as the number of jurisdictions involved, the availability of financial and corporate records, the complexity of ownership structures, whether court-ordered disclosure or interim measures are required, and whether subsequent enforcement proceedings are contested.
Can assets be traced and recovered across different countries?
Yes, asset tracing and recovery can involve more than one jurisdiction, but the legal steps available depend on where the assets and relevant information are located. A strategy may require separate disclosure, preservation, recognition or enforcement procedures in different countries, and an order obtained in one jurisdiction does not necessarily operate automatically in another.
What information do asset tracing solicitors need to start?
The starting material may include contracts, transaction records, bank or accounting documents available to the client, corporate records, correspondence, court or arbitration decisions, and information about known assets or counterparties. The documents required will depend on the nature of the claim and the jurisdictions involved.
This article is for informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified lawyer.