A. The court shall sanction a litigant for costs and reasonable attorney fees incurred by an adverse party if the court finds that the litigant has done any one or more of the following:

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1. Knowingly presented a false claim under section 25-403, 25-403.03 or 25-403.04 with knowledge that the claim was false.

2. Knowingly accused an adverse party of making a false claim under section 25-403, 25-403.03 or 25-403.04 with knowledge that the claim was actually true.

3. Violated a court order compelling disclosure or discovery under rule 65 of the Arizona rules of family law procedure, unless the court finds that the failure to obey the order was substantially justified or that other circumstances make an award of expenses unjust.

B. If the court makes a finding against any litigant under subsection A of this section, it may also:

1. Impose additional financial sanctions on behalf of an aggrieved party who can demonstrate economic loss directly attributable to the litigant’s misconduct.

2. Institute civil contempt proceedings on its own initiative or on request of an aggrieved party, with proper notice and an opportunity to be heard.

3. Modify legal decision-making or parenting time if that modification would also serve the best interests of the child.

C. For the purposes of this section, a false claim does not mean a claim that is merely unsubstantiated.

D. This section does not prevent the court from awarding costs and attorney fees or imposing other sanctions if authorized elsewhere by state or federal law.