What is Financial Abuse in Relationships

Domestic abuse is not restricted to physical harm and attack. Although less publicised and possibly less understood, the harm caused by financial abuse of one partner by another is very real and can cause immense damage to victims. 

In Wales, The Domestic Abuse Act, 2021 includes ‘economic abuse’ in the definition of domestic abuse, describing it as:

any behaviour that has a substantial adverse effect
on an individual’s ability to

(a) acquire, use or maintain money or other property, or

(b) obtain goods or services

At Gamlins Solicitors LLP our family and divorce law team regularly encounter instances of economic or financial abuse. It can occur in a wide variety of situations, but it usually comes to our attention when a client seeks advice on marital breakdown and wants to divorce or separate. If you believe you are the victim of financial abuse you can call us on 01492 532 275 for advice.

How Do I Spot Financial Abuse?

The chief indicators of financial abuse that we encounter include:

  • The situation where one spouse or partner assumes complete control of the family finances and prevents the other from even accessing bank accounts or assets. In our experience this type of control often starts early on in a marriage or relationship where the partner, who we will call the ‘abuser’, presents his or her action as helpful and as a way to remove money worries and financial administration from the other. In reality it leaves the victim vulnerable because he or she has little immediate access to cash and has no understanding of the reality of his or her true financial position
  • We often see examples of a financially abusive partner proactively damaging a victim’s financial health. This can be done by, for example, opening credit cards in the victim’s name without consent, running up high balances and failing to make payments. This will ultimately damage a victim’s credit score, preventing him or her from accessing basic credit and banking facilities in the future. In this position it becomes more and more difficult for the victim to leave an abusive partner
  • Interference with a victim’s ability to work and earn their own money is also a common form of financial abuse. An abuser might simply prevent the victim from working, for example by threatening to leave if he or she starts a job. On other occasions we see abusers distract, physically abuse, verbally undermine the ability of the victim to do the job and criticise appearance immediately before the victim goes to work. These tactics are aimed at ensuring that the victim turns up to work distressed, unprepared and unable to carry out duties. In the long term this can lead to the victim facing disciplinary action and ultimately losing their job – making them more financially dependent on the abuser.
  • Giving meagre shopping and other allowances that give the victim no option but to request more funds to meet basic family needs. This method of financial abuse is a common way for the abuser to assert control over the victim
  • In the context of divorce, often where proceedings have begun a financially abusive spouse may seek to exploit the legal process by running up legal bills, issuing frivolous court proceedings and spending lavishly to reduce the overall matrimonial financial pot. In our experience all of this is done to force the financially weaker victim to accept a reduced settlement

How To Deal With Financial Abuse

Victims of financial abuse are often in exposed positions where their ability to take effective measures to stop the abuse is severely limited. If you do find yourself in this kind of vulnerable position it is crucial to get professional advice if you can. At Gamlins Solicitors LLP we have an experienced team of family lawyers, all trained to spot signs of financial abuse and to quickly provide practical advice and support for victims.

In many cases we uncover financial abuse during the financial disclosure process in divorce. A client may appear to lack an understanding of basic family finances and assets. By broadly discussing the general nature of previous cases we have dealt with, we help clients understand that their situation is by no means unique.

Comment

One of the most damaging effects of financial abuse is the way it can trap the abused partner in a toxic, abusive relationship because he or she lacks basic access to finances or has been so sheltered from money management that he or she is incapable of taking care of their own finances. It’s important to remember that there is help available. Solicitors and other professionals can provide urgent, practical advice to help get you out of an abusive and financially harmful situation.

Contact Us

If you need any advice on any of the issues we have raised, please call us on 01492 532 275 or by email at . Gamlins Solicitors LLP has a network of offices across North Wales, and we can arrange an in-person appointment at the office that’s most convenient for you or a remote appointment if you prefer.

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