Money as a Weapon: The Devastating Impact of Financial Abuse in Relationships
Financial abuse is a form of domestic violence where one partner exerts control over the other by manipulating financial resources. This often overlooked form of abuse can severely impact a victim's independence and quality of life. Financial abuse can occur during a relationship and continue post-separation, creating significant barriers for the victim in terms of leaving and rebuilding their life.
Financial Abuse in Relationships
According to the UK charity Surviving Economic Abuse, one in five women in the UK has experienced financial abuse from a current or former partner. Financial abuse often occurs alongside other forms of domestic abuse, such as coercive control.
During a relationship, financial abuse can take many forms:
Restricting Access to Bank Accounts: Abusers often maintain sole control over finances, preventing their partner from accessing money or making financial decisions. Victims might have to ask for money every time they need to buy necessities like groceries or children's clothing, leaving them feeling powerless and dependent.
Controlling Household Finances: This can involve giving the victim an allowance and closely monitoring their spending. Victims might be required to follow a strict budget and provide receipts for every purchase. Any deviation from this budget can result in severe consequences, such as withholding money for essentials. An abuser might spend lavishly on themselves while demanding their partner cut back on necessities.
Stealing Money or Assets: Abusers might secretly open credit cards in their partner's name and max them out, leaving the victim with substantial debt and a ruined credit score.
Forcing Partners to Hand Over Paychecks: Some victims work full-time but never see any of their earnings because their abuser demands they deposit their paychecks into the abuser's account, leaving them without any financial autonomy.
Sabotaging Work Opportunities: Abusers may prevent their partners from going to work or advancing in their careers. This can include actions like ruining their partner's clothes before a job interview or demanding they stay home to cater to the abuser's needs, thus jeopardizing their job security.
Running Up Debt on Joint Accounts: Abusers might run up large amounts of debt on joint accounts or take out loans in their partner’s name, leaving the victim with significant financial burdens that are hard to escape.
Refusing to Work or Contribute Financially: Some abusers refuse to get a job and insist their partner support them both while controlling the household income, leaving the victim with no financial freedom.
Forcing Partners to Commit Financial Fraud: In extreme cases, abusers might coerce their partners into signing fraudulent tax returns or other illegal financial documents, placing the victim at risk of legal consequences.
Limiting Access to Financial Information: Abusers might handle all the financial aspects, including bills and investments, keeping the victim in the dark about their financial situation. Victims might be unaware of their financial standing and completely dependent on the abuser.
Reckless Spending: Abusers might engage in reckless spending on gambling, alcohol, drugs, or have a spending addiction, depleting shared resources and leaving the victim financially insecure and stressed about covering basic needs.
These forms of financial abuse trap victims as they lack the financial means to leave and support themselves. This is especially challenging when children are involved, as parents might stay in an abusive relationship to ensure their children have basic necessities.
Financial Abuse After Separation
Financial abuse doesn’t necessarily stop when the relationship ends. Many abusers continue to control their ex-partners by hiding assets during divorce proceedings. This can involve transferring money to secret accounts or undervaluing shared assets to reduce the victim's share of the settlement, leaving them financially unstable.
Exhausting the partner financially through legal abuse is another common tactic. An abuser might prolong divorce proceedings, file unnecessary lawsuits, or frequently change custody arrangements to increase legal costs. Many victims find themselves spending thousands on legal fees, draining their savings and causing immense stress.
Refusing to pay child support is another method used post-separation. Some abusers refuse to provide financial support for their children or work cash-in-hand jobs to underreport their income, knowing this will strain the victim's finances and affect their ability to care for their children.
Combatting Financial Abuse
Addressing financial abuse requires action on multiple fronts. On a governmental level, stronger laws and regulations are necessary to protect victims. Policies that ensure fair distribution of assets during divorce and stricter enforcement of child support payments can offer substantial relief.
In a significant development, the UK Home Office recently introduced a new initiative to provide financial assistance to victims of domestic abuse. Starting January 31, 2024, domestic abuse victims can access £500 to cover emergency expenses when leaving an abusive relationship, and can apply for a one-time payment of up to £2,500 to help establish an independent future.
In Australia, the government has committed $5.1 million over five years to study non-compliance and assist parents if private financial arrangements break down. This investment aims to ensure strict enforcement of child support payments.
Socially, raising awareness about financial abuse is vital. Educational programs can help people recognize the signs and understand their rights. Support groups and financial counseling services for survivors can provide the tools needed to regain financial independence.
The Centre for Women’s Economic Safety in Australia offers free Money Clinics for women experiencing financial abuse and concerned about their finances in the context of domestic violence. In the UK, Surviving Economic Abuse partners with frontline organizations to help them identify and respond to economic abuse.
On a personal level, victims can take steps to protect themselves by keeping copies of financial documents, maintaining a secret bank account, and seeking legal advice. Building a support network of friends, family, and professionals is also essential for assistance and guidance.
Conclusion
Financial abuse is a powerful tactic used by abusers to control and manipulate their partners, leaving lasting impacts on their lives. Recognizing the signs and understanding the various methods used is the first step in addressing this form of abuse. Through combined efforts at the governmental, social, and personal levels, we can provide victims with the resources and support they need to escape and rebuild their lives.
Featured image: Financial abuse. Source: Lightfield Studios / Adobe Stock.