Family law Services

Domestic violence is a pattern of behavior used to gain or maintain power and control over an intimate partner. While physical and emotional abuse are more widely recognized, financial abuse is another powerful and insidious form of domestic violence that often goes unnoticed. It plays a critical role in trapping victims in abusive relationships and can have long-term impacts on their independence and security.

What is Financial Abuse?

Financial abuse, also known as economic abuse, occurs when an abuser controls a victim’s ability to acquire, use, and maintain financial resources. It can happen in both overt and subtle ways and is designed to limit the victim’s freedom and ability to leave the abusive situation.

Common Examples of Financial Abuse:

• Controlling all household finances and denying access to bank accounts.
• Stealing money or assets, including paychecks, savings, or benefits.
• Forbidding the victim to work or sabotaging their employment opportunities.
• Forcing the victim into debt, such as taking loans or credit cards in their name.
• Monitoring or restricting spending, often under the guise of budgeting.
• Threatening to withhold money for basic needs like food, housing, or childcare.

How Financial Abuse Affects Victims

Financial abuse can be just as damaging as physical abuse. Victims may feel powerless, isolated, and dependent on their abuser for survival. The long-term consequences can include:

• Lack of credit history or poor credit scores, making it hard to rent a home, get a loan, or find employment.
• Limited work experience, due to forced unemployment or career sabotage.
• Emotional distress, such as anxiety, depression, and feelings of worthlessness.
• Inability to leave the relationship, because they have no money, resources, or safe housing.

Warning Signs to Look Out For

If you or someone you know is experiencing any of the following, it may be a sign of financial abuse:

• Constantly being asked to explain every purchase.
• Being kept in the dark about household finances.
• Feeling afraid to spend money, even on essentials.
• Being denied access to financial documents or online banking.
• Being pressured to sign financial documents without understanding them.

Seeking Help and Support

Financial abuse can be challenging to recognize and escape, but support is available:

• Domestic violence shelters and hotlines can offer guidance, emergency housing, and safety planning.
• Financial counsellors can help victims regain control over their finances.
• Legal aid services can assist with restraining orders, financial separation, and asset recovery.
• Community organizations and charities often provide food, clothing, and emergency financial assistance.

In Australia, for instance, services like 1800RESPECT (1800 737 732) offer 24/7 confidential support for those impacted by domestic and family violence.

Rebuilding Financial Independence

Escaping financial abuse is a process that takes time and support. Here are a few steps that can help:

1. Open a separate bank account in a secure and private location.
2. Gather important documents, such as ID, financial records, and employment paperwork.
3. Create a budget and financial plan, even if it starts small.
4. Build credit, perhaps through a secured credit card or microloan.
5. Seek employment or education opportunities, when safe to do so.