Suppose a former business partner is quietly draining a shared account, or a manager is shifting company money into a personal one. A lawsuit could take a year or more, and a favorable verdict means little if the funds are already gone. New York lets you ask a court to lock down assets while a case is still pending, though the bar for that order sits high. Two tools handle most of this work.
Two court orders that can hold assets in place
Courts freeze assets through two different mechanisms, and each serves a distinct purpose. An order of attachment lets a sheriff seize a defendant’s property to secure a possible money judgment later on. A preliminary injunction instead restrains the other side from selling, moving or hiding specific property during the case.
Judges treat both as extraordinary relief, so you generally need solid proof, not just worry, before a court will grant one. These remedies often surface in a business fraud case where an insider may be diverting company funds.
When attachment can secure a money claim
Attachment applies only to lawsuits seeking money. Under state law, it is available on a limited set of grounds, such as a defendant who lives outside New York or one who is hiding or removing property to defeat a future judgment. You also have to show that your claim will probably succeed and that it exceeds any known counterclaims. Because a wrongful freeze can harm the other party, a court will usually require you to post a bond first to cover potential damages.
When an injunction can stop a transfer
A preliminary injunction works differently. Courts may grant one when a party is about to make a future judgment meaningless, such as emptying the very accounts at the center of the dispute. Judges apply a three-part test that weighs your likelihood of success, the risk of irreparable harm and where the equities fall.
Irreparable harm generally means an injury that money alone cannot repair, so a court usually will not freeze assets when you only want a cash recovery, unless a specific, identifiable fund is at stake. If the danger is immediate, a temporary restraining order (TRO) can preserve the status quo until the court hears the full motion.
Why speed and evidence shape your options
Both orders reward the party who moves early and comes prepared. The moment you suspect assets are slipping away, start preserving proof, including bank statements, transfer records and any pattern that shows money leaving the business. Courts respond to specifics rather than hunches, and the sooner that record takes shape, the more options stay open to you.
