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Avoidance of disposition order meaning

Published by a LexisNexis Family expert
What does Avoidance of disposition order mean?
An avoidance of disposition order is a court order that restrains a person from disposing of assets, or sets aside a recent disposition, where the transfer is intended to defeat another party’s claim or to remove assets from the court’s jurisdiction. It typically prohibits dealings by gift, sale, lease, charge or otherwise, may require notices or restrictions to be registered, and breach is a contempt of court. In family financial proceedings this relief is expressly provided by statute (for example, under the Matrimonial Causes Act 1973 in England and Wales, equivalent provisions in Northern Ireland, the Family Law (Scotland) Act 1985, and Irish family law legislation). Outside family law, similar protection is obtained by injunction (such as freezing or proprietary relief). The expression “avoidance of disposition order” is therefore descriptive rather than a single defined term. Key features include urgency, availability without notice, evidence of an intention to defeat claims or a real risk of dissipation, and protections for bona fide purchasers for value without notice. Usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland, though terminology differs (for example, interdict and reduction in Scotland rather than injunction). The practical purpose is to preserve the asset base so...
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View the related Practice Notes about Avoidance of disposition order

PRACTICE NOTES
Intention to defeat family provision claims: evidential tests and remedies against donees and contracts under the Inheritance (Provision for Family and Dependants) Act 1975 (England and Wales)

The effect of the anti-avoidance provisions contained within sections 10–13 of the Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975) Under the anti-avoidance measures in I(PFD)A 1975, ss 10–13, a person (including a trustee) who, during the deceased’s lifetime, received money, property or other assets can be required to pay sums or supply property to a claimant seeking reasonable financial provision under I(PFD)A 1975. These provisions operate against the donee and their estate, rather than against the particular money, assets or property transferred by the deceased. The remedy in I(PFD)A 1975, ss 10–13 is not a tracing remedy. When a claim for reasonable financial provision is issued, the claimant may couple it with an application effectively to claw back assets disposed of with the purpose of placing them outside the deceased’s net estate. This also applies where the claimant seeks an extension of time under I(PFD)A 1975, s 4. For the application to succeed the court must be satisfied: that the...

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