Divorce is often emotionally charged, but in high-net-worth cases, the most contentious issue is usually asset division. In Chandler, many spouses work with a Chandler divorce attorney when they suspect a spouse may be hiding assets that should be divided under Arizona community property law.
Arizona requires a fair and equitable division of marital assets, but that process breaks down when one spouse intentionally conceals income, property, or financial accounts. Asset hiding is especially common in high-asset marriages involving business ownership, investments, executive compensation, or complex financial portfolios
Arizona is a community property state. Under Arizona 25-211, the law states the following:
“All property acquired by either husband or wife during the marriage is the community property of the husband and wife…”
Community property refers to all assets acquired by both spouses during the marriage, regardless of whose name appears on the account, deed, or title. On the other hand, the law protects each spouse’s right to retain their separate assets, which are those that belonged to them before the marriage, assets gifted to one spouse alone during the marriage, and all assets inherited by one spouse during the marriage.
While this may appear straightforward, it becomes complex due to the common commingling of separate assets that occurs during marriage. For example, if one spouse inherits a vacation home and their spouse spends time, talent, or money to improve the property, they can claim half of the property’s increased value.
In high-net-worth divorces, determining marital, separate, and commingled assets often requires financial forensics during the financial disclosure and discovery process. This process becomes especially complex when a spouse hides assets.
When one spouse doesn’t want to share an asset with their spouse, either due to a desire to punish their spouse for perceived wrongs or because they feel that the asset should belong solely to them, despite the law. Spouses sometimes hide assets through the following means:
When a spouse intentionally hides assets during an Arizona divorce, they can face serious legal consequences.
After both spouses submit their financial disclosures, a discovery period takes place. During this period, each spouse’s attorney may request specific documents and issue subpoenas to banks and other entities to produce documents or provide testimony. Each spouse is compelled to produce the requested documents.
A spouse can protect themselves from a spouse who attempts to hide assets during the discovery period of a divorce by hiring an experienced high-net-worth divorce lawyer in Chandler with access to valuation experts, tax consultants, auditors, and financial forensics specialists, as well as digital tracing software for asset searches.
Failing to make full and honest disclosure during the discovery period and intentionally hiding assets has substantial legal consequences, including fines and penalties, a greater share of assets transferred to a spouse, and even criminal fraud charges for perjury and contempt of court.
