Financial matters are often at the heart of many divorces and can become the most fiercely contested issues. As tensions rise, disputes over property, income, and other assets can turn an already challenging process into a bitter battle.
Arizona is a community property state, which means most assets acquired during the marriage—including income, real estate, retirement accounts, and business interests—are divided equally, regardless of whose name is on the account. Unfortunately, some spouses may attempt to conceal portions of the marital estate to avoid equitable distribution.
While hiding assets is illegal and can carry serious financial and legal consequences, it remains a common tactic in divorces. If you suspect your spouse is withholding property, the first step is to consult an attorney. At Shaffer Family Law, we help you uncover the full scope of your assets, identify any hidden property, and take decisive action to protect your financial interests throughout the divorce process.
Commonly Hidden Assets to Watch For in an Arizona Divorce
Ending a marriage is never easy, but understanding the dynamics of a high-conflict divorce can help you set realistic expectations, make informed decisions, and reduce stress for both you and your family.
- Undisclosed Bank Accounts: Additional bank accounts—sometimes offshore or in another person’s name—may be opened to keep marital funds undisclosed.
- Hidden Cash: Cash is one of the hardest forms of capital to detect because it leaves little to no paper trail. It may be withdrawn gradually and stored in safes, safe deposit boxes, or with trusted individuals.
- Underreported Income: A spouse may delay bonuses, commissions, or contract payments until after the divorce is finalized, or fail to disclose side income from freelance work or cash-based businesses.
- Undervalued Businesses: Business owners may manipulate financial records, delay contracts, or inflate expenses to make their business appear less profitable than it truly is.
- Valuable Personal Property: Items such as jewelry, collectibles, artwork, or luxury goods may be hidden, undervalued, or “gifted” to avoid inclusion in property division.
- Transfers to Third Parties: Money or valuables may be temporarily transferred to friends or relatives, often presented as debt repayment or safekeeping, with the intention of reclaiming them later.
- Cryptocurrency and Digital Assets: Digital currencies, online investment accounts, and payment platforms are increasingly used to conceal wealth due to their perceived anonymity and the challenges associated with tracking them.
- Retirement Accounts and Pensions: Although more difficult to hide, some retirement benefits—such as 401(k)s, IRAs, pensions, or other plans—may be partially disclosed or omitted, even though they are considered community property.
Uncover Hidden Assets in Your Arizona Divorce with Shaffer Family Law
These are just a few of the methods commonly used to hide assets during a divorce. While such tactics may seem clever, legal professionals and forensic accountants have encountered most of these strategies countless times.
Hiding assets isn’t just unfair—it’s illegal. Under Arizona law, both parties are required to disclose all assets fully, and the courts treat these disclosures with the utmost seriousness during divorce proceedings. Attempting to conceal or misrepresent them can lead to serious consequences, hefty fines, being required to cover the other spouse’s attorney fees, a reduced share of the marital estate, and, in extreme cases, criminal charges. Unfortunately, this still happens too often, putting the fairness of your settlement at risk.
At Shaffer Family Law in Arizona, we don’t let hidden property go unnoticed. Our attorneys take every necessary step to uncover concealed assets and secure your financial future, ensuring you receive the just and equitable outcome you deserve. Protect what’s rightfully yours—contact us at (480) 470-3030 or book your appointment online today.