What is financial abuse? It is a form of domestic abuse. It is also referred to as economic abuse.
It can have severe and long-lasting effects on the victim’s financial stability and overall well-being.
This type of abuse is a pattern of behaviour in which one partner or family member uses money, assets, or financial resources to control or manipulate the other person.
Types of financial abuse
- Forbidding the victim from working or controlling their employment opportunities.
- Taking control of the victim’s bank accounts, credit cards, or other financial assets.
- Withholding money or necessities such as food, shelter, or medication.
- Forcing the victim to sign financial documents or take on debt.
- Using the victim’s identity to obtain credit or loans without their knowledge or consent.
- Coercing the victim to make financial decisions that benefit the abuser, such as taking out a loan to finance the abuser’s business.
- Threatening the victim with financial ruin or withholding financial support for themselves or their children.
Effects of financial abuse
The effects of financial abuse can be devastating. Victims may find themselves unable to leave an abusive relationship or may experience long-term financial consequences, such as poor credit, debt, and poverty.
This issue comes up a lot for my clients. Often, their spouse was already controlling during the marriage and has now upped the ante in the divorce, with the focus being on money.
Once the couple separates, the controlling/bullying spouse might struggle not to feel in control of their spouse any longer. Often, a way they try to take back control with money and/or the children.
I work with many clients who are struggling with bullying and financial control from their spouses. The clients tend to be financially vulnerable and their spouse takes advantage of this. The vulnerable spouse often gets threatened that if they don’t do what the other spouse says, they will take further steps to make their financial position more difficult.
Most common examples of financial abuse in divorce
– cancelling direct debits so bills go unpaid
– Refusing to pay the mortgage which risks it going into arrears
– Not providing adequate financial support for the wife and children to meet their basic living expenses
– Being as uncooperative in the legal case as possible so that each client has had to spend much more money than is necessary (and that they can’t afford) on their solicitor.
I work with my clients to help them take back some control and to feel more confident about the way forward. We discuss practical and legal steps they can take to help their situation as well as tools to manage the emotional stress.
How to Get Help for Financial Abuse
If you or someone you know is experiencing financial abuse, it’s important to seek help. Here are some steps you can take:
Reach out to a domestic violence hotline.
Many domestic abuse hotlines offer financial abuse support services. Trained advocates can provide information on how to access financial resources, such as emergency cash assistance or legal aid.
Seek legal advice.
A lawyer can help you understand your rights and options for protecting your financial assets. They can also help you obtain a protective order to prevent the abuser from accessing your financial resources.
Contact a financial advisor.
A financial advisor can help you develop a plan for managing your finances and rebuilding your credit after experiencing financial abuse. They can also provide guidance on how to protect your assets and prevent future financial abuse.
Create a safety plan.
If you are in immediate danger, it’s important to create a safety plan to protect yourself and your children. This may include finding a safe place to stay, changing your bank account passwords, and securing important financial documents.
Seek support.
Recovering from financial abuse can be a long and difficult process. Consider joining a support group or seeking counselling to help you cope with the emotional and financial aftermath of abuse.
Financial abuse is a serious issue that can have long-term consequences for victims. If you or someone you know is experiencing financial abuse, it’s important to seek help as soon as possible. Remember, you are not alone, and there are resources available to help you.
To read other blogs on the topic of domestic abuse, click here.
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