Penalties for Hiding Assets in an Arizona Divorce

The Consequences of Hiding Assets in an Arizona Divorce


Divorce proceedings can be a grueling process for any couple, and it only gets more complicated when there are financial assets involved. In the state of Arizona, divorcing couples are required to disclose all assets and liabilities as part of the divorce process. However, some individuals chose to hide their assets, which can have severe consequences, including jail time. This article explores the penalties for hiding assets in an Arizona divorce and why it is essential to be transparent and honest about financial situations during the divorce process.

Arizona Community Property Laws

Arizona is a community property state, which means that all assets and debts acquired during the marriage are considered joint property. Any assets that one spouse tries to hide during a divorce may be subject to penalties. Under the Arizona Revised Statutes, the court may sanction a spouse who fails to fully disclose all assets and debts by awarding the other party an amount equal to the value of the undisclosed asset or debt. In addition, the court can order the non-disclosing spouse to pay the other party's reasonable expenses, including attorney fees.

Penalties for Hiding Assets in an Arizona Divorce

The penalties for hiding assets in an Arizona divorce can be severe and may include both financial and criminal consequences. If a spouse is found guilty of hiding assets, they may face not only financial penalties but also the possibility of criminal charges and imprisonment. In Arizona, perjury can be punished by up to six months in jail and a $2,500 fine. If the concealed assets amount to more than $100,000, the guilty party could face a class 4 felony charge, punishable by up to 3.75 years in prison and a $150,000 fine.

Why Is It Essential to Disclose All Assets in a Divorce?

Hiding assets during a divorce is not only illegal but can also result in an unequitable settlement. When couples divide their property and assets, each party must have a complete understanding of the other party's assets. Full disclosure helps ensure a fair and equitable division of assets. If one party hides their assets, this can leave the other party with no claim to assets they are entitled to, effectively robbing them of their fair share.

Tools to Help Uncover Hidden Assets During a Divorce

If you suspect that your spouse is hiding assets during a divorce proceeding, there are several ways to uncover these assets. The first step is to hire an experienced divorce attorney who can guide you through the legal process. A skilled attorney can investigate financial statements, credit card statements, and tax returns to uncover assets that may have been hidden from view. In addition, hiring a forensic accountant or private investigator can aid in uncovering hidden assets.

Consequences of Being Caught Hiding Assets During a Divorce

The consequences of being caught hiding assets during a divorce can be far-reaching. Divorce settlements are often agreed upon in good faith, and dishonesty can lead to mistrust and negative long-term consequences, including custody, visitation arrangements, and spousal support. Lying or concealing assets can also impact child support payments since these payments are based on both parties' incomes.


Divorce can be a complex and challenging process, and it's essential to understand the legal requirements and consequences. In Arizona, it is illegal to hide assets during a divorce, and the penalties can be severe. Couples undergoing a divorce should prioritize transparency and honesty in their financial affairs to facilitate a just and equitable settlement. If you have reason to suspect that your spouse is hiding assets, it is essential to consult with a competent divorce attorney, who can guide you through the legal process and protect your rights. Penalties for Hiding Assets in an Arizona Divorce-CHM Law