Charging Order
A charging order is a judicial remedy that judgment creditors may seek to satisfy judgments entered against judgments debtors with interests in separate legal entities, e.g. a trust or an LLC. A charging order only entitles the holder of the order to temporarily receive distributions from an entity in which a judgment debtor has an interest until the judgment has been satisfied. Holders of charging orders are not entitled to participate in management of the entity or compel distribution.
This brief overview of some important considerations associated with charging orders is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.