Legal Definitions - sequestrator

A sequestrator is an individual, often a court-appointed officer, tasked with taking temporary possession and control of property or assets during a legal dispute. Their primary role is to preserve the value of the property and prevent it from being hidden, damaged, or misused by one party, ensuring it remains available to satisfy a future court order or judgment.

Here are some examples of how a sequestrator might be involved:

• Example 1: Asset Protection in a High-Stakes Divorce

  During a contentious divorce case, one spouse alleges that the other is attempting to hide significant financial assets, such as luxury vehicles and valuable art, to avoid their equitable division. Concerned that these assets might be sold or moved out of the court's jurisdiction, the court appoints a sequestrator. This individual is authorized to take physical possession of the specified assets, store them securely, and manage them until the divorce settlement is finalized, ensuring they are available for fair distribution between the parties.

• Example 2: Preserving Business Assets During a Partnership Dispute

  Two business partners are embroiled in a bitter legal battle over the ownership and operation of their joint venture. Accusations arise that one partner is siphoning funds and depleting company inventory. To protect the business's remaining assets and ensure its continued operation until the dispute is resolved, a judge appoints a sequestrator. The sequestrator takes temporary control of the company's bank accounts, manages its inventory, and oversees daily financial transactions, preventing either partner from unilaterally damaging the business's value while the court decides its future.

• Example 3: Enforcing a Judgment Against a Non-Compliant Debtor

  A small business obtains a court judgment against a client who failed to pay for services rendered. Despite repeated demands, the client refuses to satisfy the judgment. The court, upon request, issues an order for sequestration, appointing a sequestrator to identify and seize specific non-exempt assets belonging to the debtor, such as a valuable piece of equipment or a commercial property. The sequestrator holds these assets until the debtor pays the judgment or until the assets can be legally sold to satisfy the debt, thereby enforcing the court's decision.