What is a charging order and when might I use it to enforce a judgment in Ontario?

A charging order is an enforcement remedy available in Ontario that allows a judgment creditor to obtain a charge — similar to a lien — over a debtor's interest in a partnership or over shares or other intangible assets. It is less common than wage garnishment or real property writs, but it is relevant when the debtor's significant wealth is tied up in a business interest rather than real estate or bank accounts.

In a partnership context, for example, a judgment creditor who cannot seize the debtor partner's share directly (because partnership assets are owned collectively) can obtain a charging order requiring that the debtor partner's distribution of profits or proceeds be applied toward the judgment debt.

For shares in a private corporation, the process is more complex. Shares are personal property, and the sheriff can be directed to seize and sell them, but their value and marketability depend on the corporation's financial health, shareholder agreements, and any rights of first refusal held by other shareholders. Shares in a public company are more straightforwardly dealt with.

Charging orders and share seizures are specialized enforcement tools best pursued with legal assistance. If you know a debtor holds substantial value in a private business but has no obvious real property or wages to garnish, discuss these options with a lawyer who handles commercial enforcement matters.