Financial Abuse: how to spot it and what you can do about it

What is financial abuse?

Financial abuse is a form of domestic and family violence. It will generally involve a pattern of behaviour where a person will use money to exercise power and control over someone else. This form of abuse can affect anyone, regardless of their age or financial circumstances.

Not all victims of financial abuse will be able to recognise their situation as one involving financial abuse. In some cases victims will feel trapped. Financial abuse can create a barrier that prevents a victim from leaving a violent relationship.

Financial abuse will present differently in different relationships. By way of example, it may involve your partner:

• giving you an allowance, checking your receipts/monitoring your spending or preventing you from accessing money;
• keeping their financial affairs or decisions secret from you;
• taking your income or government assistance;
• forcing you to give them your banking login details;
• forcing you to buy things;
• pressuring you to take out loans;
• transferring loans, leases or bills into your sole name;
• preventing you from working;
• withholding or manipulating child support payments after separation.

From 1 July 2024, coercive control (which includes financial abuse) became a criminal offence in NSW. A person found guilty of the crime of coercive control in NSW may face a maximum penalty of 7 years imprisonment.

How to reduce your risk of further financial abuse

If you have been a victim of financial abuse, it is important to take steps to minimise the risk of further financial abuse. Some steps you may consider taking, include:

• Change passwords and PINS on your computer, accounts, email, mobile phone and social media;
• Update your mailing address with any financial providers;
• Request new bank cards for personal accounts and cancel any secondary cards;
• Let mortgagors or lenders know about your separation;
• Obtain advice from a family lawyer in relation to finalising a property settlement, child support and/or spouse maintenance.

If this article has sparked any questions for you, please reach out to our experienced Team at 8525 2700. You can also schedule an appointment with one of our Family Law Solicitors, including Riccarda Stock, Nicole Quirk, Shweta Kumar, Nikita Ward and Kirstin Attard.

Ready to begin your Family Law Matter online? Simply click the button below to access our secure Settify page, and one of our team members will contact you after we receive your completed screener.

Article by Kirstin Attard
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