Economic and financial abuse is a form of domestic abuse in Australia
It often occurs in the context of intimate partner violence, and involves the control of a partner or ex-partner’s money and finances, as well as the things that money can buy.
Economic abuse and financial abuse involve similar behaviours, but it can financial abuse is often thought of as a subcategory of economic abuse. Economic abuse encompasses the many ways that an abuser may control someone’s economic situation, including employment, food, basic necessities, medication, transport and housing, for example. Financial abuse can often be thought of as controlling the actual money by stealing, gambling, coercing someone into taking on debt, controlling their allowance each week,
1 in 6 women in the Australia have reportedly experienced economic abuse by a current or former partner.
Economic abuse can include exerting control over income, spending, bank accounts, bills and borrowing. It can also include controlling access to and use of things like transport and technology, which allow a person to work and stay connected, as well as property and daily essentials like food and clothing. It can include destroying items and refusing to contribute to household costs. Gambling away your financial security and destroying your credit rating.
Refusing to pay child support and not financially disclosing assets and debts during financial property settlements are also a way of economically abusing a person and intentionally controlling them.
This type of abuse is a form of coercive and controlling behaviour. Economic abuse rarely happens in isolation and usually occurs alongside other forms of abuse, including physical, sexual and psychological abuse. 95% of cases of domestic abuse involve economic abuse. It can continue long after a leaving and can have lifelong effects
This type of abuse is designed to create economic instability and/or make one partner economically dependent, which limits their freedom. Without access to money and the things that money can buy, it is difficult to leave an abuser and access safety. Someone experiencing this type of abuse can become trapped in a relationship with the abuser, unable to resist the abuser’s control and at risk of further harm. In this way, economic safety underpins physical safety.
The impact of economic abuse makes leaving and rebuilding lives more challenging for survivors and their family. Many victim-survivors leave with large amounts of debt and poor credit ratings, affecting their long-term economic stability.
Red Flag (warnings) of economic/financial abuse
Economic abuse can take many forms. The perpetrator/abuser:
Sabotages your income and access to money:
- prevent you from being in education or employment
- limit your working hours
- takes your pay
- refuse to let you claim government payments/ benefits or take all the benefits
- take children’s savings or birthday money
- refuse to let you access a bank account
- making you work in a family business without pay
- give you a small allowance for necessities only
- takes any windfall you get such as an inheritance
Restrict how you use money and the things that you own:
- control when and how money is spent
- dictate what you can buy
- make you ask for money
- give you a small allowance to cover necessities only
- check your receipts
- make you keep a spending diary
- make you justify every purchase made
- control the use of property, such as a mobile phone or car
- insist all economic assets (eg savings, house) are in their name
- keep financial information secret
Exploits your economic situation:
- steal your money or property
- steal your identity or inheritance
- cause damage to your property
- refuse to contribute to household costs
- spend money needed for household items and bills
- misuse money in joint bank accounts
- insist all bills, credit cards and loans are in your name and make you pay them
- build up debt in your name, sometimes without your knowledge
- destroying your credit rating affecting your future financing ability
There is help
If you have experienced economic or financial abuse, you are not alone. There are people and organisations that can help .Refer to www.dvsupporthub.com for information on various services that can help as well as ways to help you financially get back on your feet.
Call 1800RESPECT for immediate assistance.
